TRANSFAR ZHILIAN(002010)2022-11-21 16:10Group 1: Company Value Assessment - The company's value can be reflected in three main business segments, with significant operational improvements compared to previous years. Prior to 2020, the company faced operational losses, but has since turned profitable, as evidenced by the first quarter performance [2][3]. - The road port business has shown the most significant improvement, transitioning from a loss phase to a stable profit phase over the past 2-3 years, indicating the platform's value is beginning to materialize [3]. - The network freight platform is expanding in scale, contributing steadily to operational profits, with efforts now focused on tapping into the shipper market in addition to connecting logistics companies and drivers [3]. Group 2: Market Challenges - The express line market is highly fragmented, with low industry concentration and significant service level disparities, exacerbated by increased competition from capital influx, leading to survival challenges for many express line companies [3]. - Issues of trust and unreasonable resource allocation in the market, along with a slow digital transformation among express line companies, hinder the ability to provide high service levels to customers [3]. Group 3: Future Investments and Layout - The company has over 60 projects covering most regions of the country, with ongoing efforts to enhance the road port network. Most projects are entering a harvest phase, confirming the success of the road port model [3]. - New projects are being established in cities such as Wuhan, Puyang, Haining, Meihekou, and Enshi, with an expectation to add 3-5 new projects annually in the future [3]. - The company will continue to deepen its local market presence and expand existing road port scales based on current project layouts [3]. Group 4: Asset Valuation - The road port assets are measured at fair value as investment properties, requiring annual evaluations based on discounted cash flows from rental income, which is a conservative approach [4]. - The true value of the road port network extends beyond mere property value; it lies in enhancing logistics turnover efficiency and fostering the growth of businesses on the platform [4].