China Logistics Group Plans To Integrate And Build A Logistics Carrier, Chongqing Port, Or Change Ownership. The Stock Price Of A State-owned Enterprise With A Value Of Billions Of Yuan Hit The Daily Limit Up
China Logistics Group plans to integrate and build a logistics carrier, Chongqing Port, or change ownership. The stock price of a state-owned enterprise with a value of billions of yuan hit the daily limit up
On the evening of February 10th, Chongqing Port (600279. SH) announced that the company had received a notification letter from its controlling shareholder Chongqing Port Logistics Group Co., Ltd. (referred to as "Chongqing Port Logistics Group") that its indirect controlling shareholder Chongqing Logistics Group Co., Ltd. (referred to as "Chongqing Logistics Group") is planning to integrate state-owned assets with China Logistics Group Co., Ltd. (referred to as "China Logistics Group"). This integration may lead to changes in the controlling shareholder and actual controller of the company.
China Logistics Group was established in December 2021 and is a diversified central enterprise in the logistics industry with a registered capital of 30 billion yuan.
There were already signs of integration between China Logistics Group and Chongqing Logistics Group. In March 2024, China Logistics Group signed a cooperation agreement with the Chongqing Municipal Government and jointly established China Logistics Group Holdings Limited.
There is a precedent for central enterprises to integrate local port enterprises. China Merchants Group has participated in the integration of Liaogang Group.
China Logistics Group's entry into the integration of Chongqing Port resources is seen as supporting the construction of a new land sea corridor in the western region and creating a modern large-scale integrated logistics aircraft carrier.
Affected by the above matters, on February 11th, Chongqing Port experienced a strong one board limit up in the secondary market.
China Logistics Group improves the industrial puzzle
China Logistics Group has taken action.
According to the announcement of Chongqing Port, an A-share company, on February 10th, the company received a notification letter from its controlling shareholder Chongqing Port Logistics Group, stating that the company's indirect controlling shareholder Chongqing Logistics Group is planning a strategic integration of state-owned assets with China Logistics Group.
The company stated that this integration may result in a change in the controlling shareholder and actual controller of the company. The arrangements still need to follow procedures and obtain approval from relevant regulatory authorities. This integration will not have a significant impact on the normal production and operation activities of our company.
According to the above announcement, Chongqing Port may change ownership to China Logistics Group.
Both China Logistics Group and Chongqing Logistics Group were established. In December 2021, with approval, China Logistics Group was formed by integrating four enterprises, including the former China Railway Materials Group and China Material Storage and Transportation Group in the logistics sector of China Chengtong Holdings Group. China Eastern Airlines Group, China Ocean Shipping Group, and China Merchants Group were simultaneously introduced as strategic investors. Currently, China Logistics Group is the only new central enterprise with comprehensive logistics as its main business, mainly engaged in supply chain integration services, comprehensive logistics services, and international logistics services. It holds controlling stakes in four A-share listed companies, including China Railway Materials, China Reserves Corporation, Huamao Logistics, and Guotong Corporation.
If the integration project is successfully completed, the number of A-share listed companies owned by China Logistics Group will increase to 5.
As of the end of 2023, China Logistics Group has a total of 126 railway dedicated lines in China, with the ability to ship goods from major railway stations across the country; Having 23 dock berths, it has achieved a network layout relying on national trunk railways and major waterway routes. At present, its business outlets cover 30 provinces (cities, districts) in China and five continents overseas, with international trains running through Asia and Europe, giving it a strong competitive advantage in the international logistics market.
Chongqing Logistics Group was established on June 29, 2023. It is a key state-owned enterprise under the jurisdiction of the city, integrating Chongqing Transportation Group, Chongqing Port Logistics Group, and Chongqing International Logistics Group. Its mission is to promote the construction of the Western Land Sea New Corridor, Chongqing Inland International Logistics Hub, and Port Highlands, and to promote cost reduction, efficiency improvement, and high-quality development of the logistics industry.
According to public information, there are already signs of integration between the two.
In March 2024, China Logistics Group signed a cooperation agreement with the Chongqing Municipal Government and jointly established China Logistics Group Holdings Co., Ltd. The two parties will cooperate to carry out port logistics and channel logistics construction and operation.
The integration of ports across the country continues to advance, and port resources in Chongqing are also being developed. On February 10th, the Chongqing State owned Assets Supervision and Administration Commission held a kickoff meeting for the integration of port resources of municipal state-owned enterprises, with Chongqing Logistics Group as the main body, to implement specialized integration of terminal resources.
Analysis suggests that the port logistics resources of Chongqing Port can form a strong alliance with the railway and warehousing resources of China Logistics Group, leveraging the advantages of Chongqing Port's various intermodal port areas and helping Chongqing Port build a modern comprehensive logistics enterprise in the western region. China Logistics Group can also establish itself in Chongqing, drive the western region, and radiate throughout the country, assisting in the construction of a new land sea channel in the western region and building a large modern logistics aircraft carrier.
Or inject assets to enhance profitability
Due to the expected integration, the secondary market has shown great enthusiasm. On February 11th, Chongqing Port experienced a one board limit up.
Chongqing Port was listed on July 31, 2000, becoming the first listed company in inland ports. Chongqing Port mainly operates and manages key public port terminals in Chongqing, with an annual cargo throughput capacity of nearly 70 million tons and a container throughput capacity of 2.67 million TEUs; It has four iron and steel intermodal port areas, namely Guoyuan Port, Wanzhou Hongxigou, Jiangjin Lanjiatuo, and Luohuang Port, with a railway dedicated line of 49 kilometers and an annual railway operating capacity of 31 million tons.
In the first three quarters of 2024, Chongqing Port achieved a revenue of 3.458 billion yuan, a year-on-year decrease of 15.64%; The net profit attributable to the shareholders of the parent company (hereinafter referred to as "net profit attributable to the parent company") was 74.61 million yuan, a year-on-year decrease of 6.01%.
The overall profitability of Chongqing Port is not strong, and its operating performance fluctuates significantly. From 2019 to 2023, the company achieved net profits attributable to shareholders of 159 million yuan, 89 million yuan, 67 million yuan, 143 million yuan, and 627 million yuan, respectively.
In 2023, the company's net profit attributable to the parent company reached 627 million yuan, but excluding the impact of non recurring gains and losses, the net profit was only 20 million yuan.
According to Wind data, since its listing in 2000, Chongqing Port has achieved a cumulative net profit attributable to shareholders of 2.671 billion yuan. Prior to 2017, the annual net profit attributable to the parent company was less than 100 million yuan. If excluding the impact of non recurring gains and losses, the net profit in 2017 and 2018 alone exceeded 100 million yuan, with 107 million yuan and 103 million yuan respectively.
From the above business performance data, it can be seen that the profitability of Chongqing Port needs to be improved. However, the company's finances are relatively stable. As of the end of September 2024, the company's asset liability ratio was 37.80%.
In 2023, China Logistics Group achieved a revenue of 151.06 billion yuan and a total profit of 3.416 billion yuan; As of the end of March 2024, the total consolidated assets amounted to 107.098 billion yuan, with owner's equity of 51.058 billion yuan; From January to March 2024, the company achieved a revenue of 31.608 billion yuan and a total profit of 897 million yuan.
Analysts believe that China Logistics Group was established under the background of a unified national market, with considerable assets and resources under its umbrella. It can be expected that the group will optimize and integrate resources in the future to enhance its domestic market logistics service capabilities and international logistics market competitiveness.
For Chongqing Port, when China Logistics Group participates in the integration of Chongqing Port resources, it will also work with the local area to comprehensively consider Chongqing Port resources and business layout, and is expected to inject assets into Chongqing Port to enhance its comprehensive profitability.
