Investment Rating - The report assigns an "Accumulate" rating for Liaoport Co., Ltd. (601880.SH) [3] Core Views - Liaoport Co., Ltd. is the largest comprehensive terminal operator in Northeast China, with strong business integration. The company has enhanced its overall strength following the absorption and merger of Yingkou Port in 2021. Although the company's early performance was impacted by oil business, it is expected to recover in 2025 as it continues to expand container shipping resources and seek growth in oil business, while the grain transportation business has room for growth under the "North Grain South Transport" pattern [1][8]. Financial Data and Valuation - Total revenue for 2023 is projected at 12,220 million yuan, with a year-on-year growth of 2%. Revenue is expected to decline by 9% in 2024, followed by a recovery with a 4% increase in 2025 [2] - Operating profit for 2025 is estimated at 2,240 million yuan, reflecting a 24% year-on-year growth [2] - Net profit attributable to shareholders is expected to be 1,403 million yuan in 2025, representing a 23% increase compared to 2024 [2] - The company’s current price-to-earnings (PE) ratio is 26.2, and the price-to-book (PB) ratio is 0.9 [2] Business Overview - Liaoport Co., Ltd. operates in various segments including oil products, containers, bulk cargo, and grain, with a strong focus on container and bulk cargo contributing significantly to profits. The company has faced short-term performance pressure due to a decline in high-margin cargo volumes such as iron ore and steel [8][26] - The company has a total of 180 operational berths, with 154 being over 10,000 tons, and a throughput capacity exceeding 600 million tons [13] - Container throughput for 2024 is projected at 10.86 million TEU, with a year-on-year growth of 5.8% [22] - The grain business is expected to grow steadily, with a projected throughput of 15.63 million tons in 2024, reflecting a 2.3% increase [8][22] Industry Insights - The container business in the national port sector continues to show steady growth, with a 4.2% year-on-year increase in container throughput in the first half of 2025 [46] - The bulk cargo sector is experiencing pressure due to domestic demand, particularly in coal and iron ore, with coal throughput in northern ports declining by 5.5% in 2024 [54][58] - The ongoing integration of ports in Liaoning Province is expected to enhance operational efficiency and provide room for rate increases in port services [70][73]

Core Insights - The Northeast provinces and one region have jointly issued guidelines for the 2025 "North Grain South Transport" logistics initiative, aiming to enhance the efficiency and cost-effectiveness of the grain logistics system [1][2] - The initiative focuses on establishing a robust logistics support mechanism, improving infrastructure connectivity, and enhancing the safety and resilience of grain transportation [1][2] Group 1: Goals and Tasks - The 2025 pilot project aims to establish a logistics support mechanism, accelerate infrastructure connectivity, improve transportation efficiency, expand the application of new technologies, and reduce logistics costs and transportation losses [1] - Six major tasks and 20 key initiatives have been outlined to achieve these goals, including enhancing transport capacity, optimizing structure, improving efficiency, strengthening guarantees, building systems, and promoting sharing [1] Group 2: Implementation Strategies - The strategy for reducing costs and improving quality in grain logistics includes strengthening the railway network, enhancing the highway network, and improving logistics hub construction [2] - The initiative promotes the transformation of grain transportation from road to rail, the conversion of bulk to container transport, and the development of multimodal transport routes [2] - The establishment of emergency response, cooperation, and monitoring mechanisms is crucial for ensuring smooth logistics operations and fostering collaboration among various stakeholders [2]

Core Insights - The transportation department of the province has made significant progress in the "North Grain South Transport" logistics initiative, achieving a 41% year-on-year increase in grain transport from January to May, totaling 39.77 million tons [1] - Infrastructure enhancements, including improved highway connectivity and the construction of dedicated port facilities, have bolstered the capacity of the transportation corridor [1] - The optimization of transportation structure and organization has contributed to cost reductions, with a notable 11.6% decrease in freight costs per ton-kilometer for grain transport [2] Group 1: Transportation Efficiency - The province has completed 39.77 million tons of grain transport from January to May, with significant contributions from ports and railways [1] - Infrastructure projects, such as the construction of specialized berths and multi-modal transport hubs, are underway to enhance the transportation capacity [1] - The optimization of the collection and distribution system is addressing logistical challenges in grain transport [1] Group 2: Cost Reduction Strategies - The shift from road to rail transport and the transition from bulk to containerized shipping have effectively reduced costs [2] - The introduction of container train services has led to an 11.6% reduction in freight costs per ton-kilometer, while the grain containerization rate has increased by 0.6 percentage points [2] - The reduction of handling fees and the implementation of innovative transport methods have improved efficiency and reduced transport times [2] Group 3: Technological Advancements - The adoption of automated equipment in grain handling has significantly reduced labor costs and improved operational efficiency [2] - The time required for loading grain into containers has been reduced from 30 minutes to 9 minutes through the use of new technologies [2] - Future efforts will focus on enhancing the logistics chain and addressing bottlenecks in the multi-modal transport system [2]