Investment Rating - The report assigns a "Buy" rating for the company, with a target price of 81.49 CNY based on a target PE of 16 times [6]. Core Insights - The company's main business prices are at historical lows, which has negatively impacted profit growth. However, prices are expected to recover with economic recovery and stabilization in the chemical industry, potentially accelerating profit growth [1][49]. - The company is actively expanding its business volume through product diversification, regional expansion, and market share increase, leading to sustained growth in freight forwarding, chemical sales, shipping, and warehousing [2]. - Profitability is expected to increase, and valuation may rise as profit growth accelerates and risk preferences improve among investors [3]. Summary by Sections 1. Company Overview - The company is a leading provider of integrated supply chain services in China, focusing on freight forwarding, warehousing, and transportation, with a strong emphasis on chemical distribution [15][29]. 2. Price Recovery Potential - Current prices related to the company's main business are at historical lows, affecting profit growth. Future price recovery is anticipated due to economic recovery and stabilization in the chemical sector [1][49]. 3. Business Growth Strategies - The company is expanding its product categories, regions, and market share, with significant growth expected in freight forwarding and chemical distribution [2][41]. 4. Profitability and Valuation - The company is projected to achieve net profits of 660.95 million CNY, 805.34 million CNY, and 932.98 million CNY for the years 2025, 2026, and 2027 respectively, indicating strong profit growth [4][5]. - The company's valuation is expected to rise as profit growth accelerates and market risk preferences improve [3][44]. 5. Financial Data - The company’s revenue is projected to grow from 9,752.55 million CNY in 2023 to 16,738.82 million CNY in 2027, with a CAGR of 39% from 2015 to 2024 [5][44].

Core Viewpoint - The company has implemented a "Quality Improvement and Efficiency Enhancement" action plan, focusing on enhancing operational quality, increasing shareholder returns, advancing digital transformation, and optimizing corporate governance to align with national economic policies and improve investor confidence [1][2][3]. Group 1: Operational Quality Enhancement - The company is a leading provider of intelligent supply chain services in China, offering comprehensive logistics services including freight forwarding, warehousing, and transportation, while expanding into chemical distribution and new energy sectors [1]. - The company has seen a 17.11% increase in operating costs, amounting to 6.229 billion yuan compared to the same period last year [2]. - The company is actively developing new business areas such as express delivery, large items, cold chain logistics, and internal logistics, achieving over 100 million yuan in revenue from these new services [2]. Group 2: Shareholder Returns - The company has prioritized shareholder and stakeholder rights protection, implementing a stable profit distribution plan that includes a cash dividend of 112,295,681.01 yuan for the 2024 fiscal year, representing 52.29% of the net profit attributable to shareholders [3]. - The total amount for cash dividends and share buybacks reached 295,512,071.64 yuan, further enhancing shareholder returns [3]. Group 3: Digital Transformation - The company has obtained 116 patents and 231 software copyrights, focusing on innovative technologies to enhance operational efficiency [4]. - The company has developed a leading SaaS-based fourth-party logistics management system, enabling automated management of order flows, transportation, and warehousing [5]. - The company is committed to advancing digital transformation and enhancing technological innovation to drive green transformation in the chemical supply chain [5]. Group 4: Investor Communication and Transparency - The company emphasizes investor communication and transparency, having disclosed 136 announcements and responded to 14 investor inquiries in 2025 [6][8]. - The company has established a value management system to enhance investor understanding and recognition, while also addressing public sentiment effectively [6][9]. Group 5: Corporate Governance - The company has revised its governance structure, eliminating the supervisory board and transferring its responsibilities to the audit committee of the board [8]. - The company is committed to sustainable development, focusing on low-carbon and circular economy initiatives, including the use of new energy vehicles and solar energy [8]. Group 6: Responsibility of Key Personnel - The company has clarified the responsibilities of key stakeholders, including controlling shareholders and senior management, to enhance accountability and governance [9].

Group 1 - The core viewpoint of the news is that Milkyway (603713.SH) is enhancing its business presence in Northern China by acquiring a 30% stake in Tianjin Wuze Logistics Co., Ltd. for approximately 142 million yuan [1] - The acquisition aims to provide top-tier port hazardous goods container logistics services to clients in Tianjin and surrounding areas, optimizing the company's long-term strategic layout [1] - Tianjin Wuze, established in October 2022, is a wholly-owned subsidiary of Tianjin Port Logistics Development Co., Ltd., which is under the A-share listed company Tianjin Port (600717.SH) [1] Group 2 - Milkyway is a leading professional intelligent supply chain service provider, primarily offering integrated logistics services centered around freight forwarding, warehousing, and transportation, while extending into chemical product distribution services [2] - In 2024, Milkyway achieved operating revenue of 12.118 billion yuan, a year-on-year increase of 24.26%, and a net profit of 565 million yuan, up 31.04% [2] - The company has established six major operational regions in Greater China, including Shanghai, Southern, Northern, Shandong, Western, and Yangtze regions [2] Group 3 - In 2024, Milkyway also acquired Guangzhou Jiesheng Zhigu Pigment Co., Ltd. and established new companies, continuously improving its business layout [3] - The company's revenue in the Shanghai region reached 6.49 billion yuan in 2024, a year-on-year increase of 31.67%, while non-Shanghai regions generated 5.606 billion yuan, up 16.47% [3]

Group 1 - During the Dragon Boat Festival holiday (May 31 - June 2), China Southern Airlines Logistics Co., Ltd. (CSAL) transported over 11,000 tons of cargo and mail, showing significant growth compared to the same period last year [1] - CSAL enhanced logistics efficiency by utilizing big data to predict peak cargo volumes, optimizing capacity resources, and increasing the cargo load factor on popular domestic routes by 10% [1] - The company improved its cold chain logistics capabilities for fresh products, speeding up the delivery process from unloading to delivery by 20%, with domestic fruit and vegetable cargo volumes increasing by over 20% and seafood by over 50% [1] Group 2 - CSAL implemented measures such as staggered warehousing, charter flights, and accelerated cargo flow to leverage the high efficiency of air logistics [2] - The company introduced reusable packaging materials in collaboration with express delivery companies to reduce single-use materials, contributing to green logistics [2] - As the "618" shopping festival approaches, CSAL plans to innovate and deepen its multimodal transport system, expanding its overseas logistics layout to provide comprehensive logistics services for Chinese brands and international clients [2]

Core Viewpoint - The company, Milkwell, has announced the acquisition of a 30% stake in Tianjin Wuze Logistics Co., Ltd. for 142 million RMB through a public bidding process, aiming to enhance its logistics services in the Tianjin area and optimize its long-term strategic layout [1][3]. Group 1: Acquisition Details - The acquisition price for the 30% stake in Tianjin Wuze is 141.55 million RMB, which aligns with the assessed value of the stake as per the evaluation report [1][3]. - The company received a confirmation notice from Tianjin Property Rights Exchange Center on February 19, 2025, and completed the payment for the remaining price on March 6, 2025 [2]. - The acquisition was approved by the company's board of directors and does not require shareholder approval, as it falls within the board's authority [2]. Group 2: Financial Performance - In 2024, the company reported a revenue of 12.118 billion RMB, a year-on-year increase of 24.26%, and a net profit of 565 million RMB, up 31.04% [4]. - For the first quarter of 2025, the company achieved a revenue of 3.342 billion RMB, reflecting a 15.40% year-on-year growth, with a net profit of 172 million RMB, a 14.02% increase [4]. - The growth in revenue is attributed to significant increases in the MGF segment's sea freight exports and the MCD segment's performance [4]. Group 3: Company and Industry Context - Tianjin Wuze is a small enterprise primarily engaged in handling and warehousing, with a revenue of 7.9149 million RMB and a net loss of 2.57997 million RMB in 2024 [5]. - The performance of Tianjin Wuze is significantly below industry leaders, with its revenue being less than 10 million RMB compared to Milkwell's revenue exceeding 10 billion RMB [5]. - The acquisition is expected to strengthen Milkwell's position in the hazardous goods logistics market in North China, given the high entry barriers in this sector [5].

Core Viewpoint - The company, Milkwell (603713), reported significant growth in revenue and net profit for the fiscal year 2024 and the first quarter of 2025, despite facing challenges such as high debt levels and negative investment cash flow [2][3][5]. Financial Performance - For the fiscal year 2024, the company achieved a revenue of 12.118 billion yuan, representing a year-on-year increase of 24.26%, and a net profit attributable to shareholders of 565 million yuan, up 31.04% [3][5]. - In the first quarter of 2025, the company reported a revenue of 3.342 billion yuan, a 15.40% increase year-on-year, and a net profit of 172 million yuan, reflecting a 14.02% growth [3][5]. Debt and Cash Flow - The company's debt ratio stands at 68.33%, attributed to increased operational scale and debt financing for acquiring long-term assets [5]. - The negative investment cash flow in 2024 is primarily due to strategic investments in fixed and intangible assets [2][5]. Impact of Tariffs - The U.S. tariff increases have a limited impact on the company's global freight forwarding business, which constitutes about 30% of total revenue, with the U.S.-Canada route accounting for approximately 25% of that segment [2][3]. - The company has adjusted its shipping routes, leading to an increase in cargo volume on European and Southeast Asian routes since the second half of 2024 [2][3]. Future Growth Drivers - Future profit growth is expected to be driven by effective management and market recognition of the company's value, as outlined in the 2024 annual report [3][4]. Industry Context - The company operates in the modern logistics sector, providing comprehensive logistics services, including freight forwarding, warehousing, and transportation, primarily for the chemical supply chain [4].