Sinotrans (601598) Interim Review: Performance Meets Expectations Forwarder Main Business May Still Deduct Non-EPS to Realize Growth

Investment Highlights: Event: Sinotrans released its 2019 semi-annual report, with revenue growth of 3.

36% to 377.

200 million, net profit attributable to mothers rose 17% to 15.

200 million, net profit after deducting non-attribution rose 27.

8% to 1.3 billion, affected by the share swap, EPS decreased by 1.

3% to 0.

21, deducting non-EPS rose by 7.

7% to 0.


Freight forwarding and logistics business contributed to profit growth.

Revenue from freight forwarding in the first half of the year was 238.

930,000 yuan, an increase of 8.

85%; segment profit is 6.

530,000 yuan, an increase of 4.


Affected by external environmental pressures in the first half of the year, the company’s freight forwarding business still achieved annual growth.

9%, an increase of 9 in the same period last year.

3%, 13 for air freight.

7%, an increase of 6 in the same period last year.


Professional logistics income 97.

630,000 yuan, down 1.

83%; segment profit was 4.

290,000 yuan, an increase of 8.


The company’s contract logistics business volume was basically flat, but the increase in profitability was mainly due to the improvement in business structure and customer structure, and the decline in functional logistics business volume.

4% dragged down revenue.

南宁桑拿 The margin of warehousing terminal services and other services was small.

The external turnover of warehousing and terminal services was 11.

520,000 yuan, down 3.

97%; segment profit was 2.

08 million yuan, down 2.

63%, the volume of container warehousing business increased in the first half of the year2.

5%, the volume of bulk warehousing business decreased by 3.

8%, terminal business volume fell by 6.


Revenue from other services (container leasing, shipping, car transportation and courier services, etc.) 29.

RMB 120,000, a decrease of 14.32%; segment profit is 0.

410,000 yuan, down 80.

81%, the reason for the decline is that in the second half of last year, after disposing of some of the equity of Lukai International, it was no longer consolidated.

DHL investment income.

Contributed 北京桑拿洗浴保健 investment income in the first half of the year4.

830,000 yuan, down 12 before.


The cost of Sinotrans DHL’s joint venture is denominated in Euros, and the RMB depreciation is expected to affect profits.

At the same time, in the short-term background of FedEx’s business in China, Sinotrans DHL increased the share of US line spending in the first half of the year, and short-term cost expenditures led to profit growth. It is expected that profit growth will accelerate recovery as business volume increases.

Selling and administrative expenses decreased.

After disposal, China Merchants Lukai will no longer consolidate, and the company’s selling expenses decreased by 10 in the first half of the year.

6%, management dropped 7.


Performance is in line with expectations, maintaining profit forecasts and ratings.

It is estimated that the company’s net profit attributable to its parent in the year 19-21 will be 27.

600 million, 28.

700 million, 30.

400 million, corresponding to PE 12 times, 11 times, 11 times.

At the current historical bottom of the company’s expectations, the company’s freight forwarding business is relatively stable in profit, its price elasticity is weak, its revenue is related to volume, it still has a certain amount of revenue, and the impact of external environmental pressure is limited.

After the internal integration of the logistics business of China Merchants Logistics and Sinotrans contract logistics business, the space for synergy advantages is worth looking forward to, maintaining the “overweight” level.