Overview - The dangerous goods warehousing industry in China has seen significant growth, with a market size reaching 392.4 billion yuan in 2022, reflecting a year-on-year increase of 6.28% [6][8] - However, the market is expected to slightly decline to 388.1 billion yuan in 2024 due to various factors such as global geopolitical conflicts, inflation pressures, and uneven economic recovery [6][8] Industry Chain - The upstream of the dangerous goods warehousing industry involves the production, processing, and supply of hazardous materials, including chemical raw materials and explosives [4] - The downstream consists of industries such as chemicals, pharmaceuticals, energy, and cosmetics, which are the primary demanders of dangerous goods warehousing services [4] Current Development - The industry plays a crucial role in the logistics system for hazardous materials, providing comprehensive storage and related services to ensure safe and efficient operations [6][8] - The demand for dangerous goods logistics is increasing due to the growth of high-risk industries in China [6][8] Competitive Landscape - The dangerous goods warehousing industry has high specialization and is subject to strict safety and environmental regulations, creating significant entry barriers [10][11] - The top ten companies in the hazardous goods warehousing sector include Milky Way Intelligent Supply Chain Service Group, Shanghai Changji Supply Chain Management, and others, with Milky Way leading in warehouse area at 679,000 square meters [12][14] Company Analysis - Milky Way Intelligent Supply Chain Service Group reported a total revenue of 12.12 billion yuan in 2024, with a significant portion coming from integrated logistics services [14] - Guangdong Hongchuan Smart Logistics Co., Ltd. achieved a total revenue of 1.45 billion yuan in 2024, primarily from comprehensive storage and transfer services [16] Development Trends - The future of the industry will see increased application of IoT technology and big data analytics to enhance monitoring and emergency response capabilities [18] - There will be a stronger focus on green development, with companies adopting environmentally friendly materials and optimizing logistics to reduce energy consumption and carbon emissions [18]

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company achieved a revenue of 7.04 billion RMB in H1 2025, representing a year-on-year increase of 17.4%, and a net profit attributable to shareholders of 350 million RMB, up 13% year-on-year [2] - In Q2 2025, the company reported a revenue of 3.69 billion RMB, a growth of 19.3% year-on-year, and a net profit of 180 million RMB, which is a 12.3% increase year-on-year [2] - The company overcame downward pressure on freight rates, with the CCFI index averaging 1162 in Q2 2025, down 19% year-on-year, yet still achieved revenue growth due to increased business volume [2] - The company is focusing on smart supply chain services and enhancing chemical distribution services, acquiring several key clients in the new energy, chemical, semiconductor, and pharmaceutical sectors [2] - The company has maintained a warehouse asset utilization rate of 85% and is progressing well with self-built bases in Zhanjiang and Huizhou [2][3] - The gross profit margin improved to 11.3% in Q2 2025, up 0.4 percentage points year-on-year, attributed to a lower decline in freight forwarding gross profit per container compared to freight rate declines [3] - The company completed equity investments totaling 183 million RMB, primarily in the chemical new materials and logistics sectors, enhancing its supply chain service capabilities [3] Summary by Sections Performance - H1 2025 revenue: 7.04 billion RMB, up 17.4% YoY - H1 2025 net profit: 350 million RMB, up 13% YoY - Q2 2025 revenue: 3.69 billion RMB, up 19.3% YoY - Q2 2025 net profit: 180 million RMB, up 12.3% YoY [2] Operational Analysis - Q2 2025 CCFI index: 1162, down 19% YoY - Revenue growth driven by increased business volume despite freight rate pressures - Focus on smart supply chain and chemical distribution services with new key clients [2][3] Profitability and Expenses - Q2 2025 gross profit margin: 11.3%, up 0.4 percentage points YoY - Q2 2025 expense ratio: 4.5%, up 0.2 percentage points YoY - Q2 2025 net profit margin: 4.9%, down 0.3 percentage points YoY [3] Profit Forecast, Valuation, and Rating - Revised net profit forecasts for 2025-2027: 650 million RMB, 800 million RMB, 950 million RMB - Maintained "Buy" rating [4]

Core Viewpoint - The company reported a revenue of 7.035 billion yuan for the first half of 2025, reflecting a year-on-year growth of 17.40% [1] - The net profit attributable to shareholders reached 352 million yuan, marking a 13.12% increase year-on-year [1] - The company focused on smart supply chain services and enhanced chemical distribution services, leading to sustained revenue growth and improved profitability [1] Financial Performance - Revenue for the first half of 2025: 7.035 billion yuan, up 17.40% year-on-year [1] - Net profit attributable to shareholders: 352 million yuan, up 13.12% year-on-year [1] - Deducted non-recurring profit: 325 million yuan, up 13.17% year-on-year [1] - Basic earnings per share: 2.22 yuan [1] Strategic Focus - The company continues to concentrate on its main channel of smart supply chain services [1] - There is an emphasis on strengthening chemical distribution services [1] - Operational efficiency has been optimized, contributing to overall profitability improvements [1]

Core Insights - The company reported a revenue of 7.035 billion yuan for the first half of 2025, representing a year-on-year growth of 17.40% [1] - The net profit attributable to shareholders reached 352 million yuan, an increase of 13.12% year-on-year [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 325 million yuan, reflecting a year-on-year growth of 13.17% [1] - The basic earnings per share stood at 2.22 yuan [1] Revenue and Profitability - The company focused on intelligent supply chain services and enhanced chemical distribution services, leading to sustained revenue growth [1] - Operational efficiency was optimized, which improved overall profitability [1]

Core Viewpoint - The company announced a cash dividend distribution of 0.71 CNY per share, totaling approximately 112.30 million CNY, based on a total share capital of 158,162,931 shares [1][2]. Dividend Distribution Details - The cash dividend of 0.71 CNY per share is inclusive of tax [2]. - The key dates for the dividend distribution are as follows: - Record date: June 4, 2025 - Last trading date: June 5, 2025 - Ex-dividend date: June 5, 2025 [1][2]. Implementation Method - The cash dividends will be distributed through the China Securities Depository and Clearing Corporation Limited, Shanghai Branch, to shareholders registered by the record date [2]. - Shareholders who have completed designated transactions can receive their cash dividends on the payment date at their designated securities business department [2]. Taxation Information - For individual shareholders holding unrestricted circulating shares, the company will not withhold income tax at the time of dividend distribution; tax will be calculated based on the holding period upon actual stock transfer [4]. - The effective tax burden for shareholders holding shares for one month or less is 20%, while those holding for more than one month up to one year will have a reduced tax rate [4][5]. - For qualified foreign institutional investors (QFII) and renminbi qualified foreign institutional investors (RQFII), a 10% withholding tax will apply [5][6]. Adjustments Related to Convertible Bonds - The company will adjust the conversion price of its convertible bonds in accordance with the relevant regulations following the cash dividend distribution [6]. Contact Information - Shareholders can inquire about the dividend distribution through the company's securities department via phone or email [6].