Sealand's research reports pointed out that in the first half of 2024, shenzhen int'l (00152) achieved revenue of 6.61 billion Hong Kong dollars, a decrease of 4.46% year-on-year, and achieved a net income attributable to the parent of 0.653 billion Hong Kong dollars, a year-on-year increase of 609.10%.
The bank stated that in the first half of 2024, the company's logistics business achieved revenue of 0.882 billion Hong Kong dollars, a decrease of 4.69% from the same period last year. During this period, the company successfully listed the Hangzhou Phase I project and the guizhou Longli project as reits, recording a net income after tax of 0.587 billion Hong Kong dollars. However, due to a fair value loss of 0.209 billion Hong Kong dollars for the company's logistics park project, combined with the increased operating costs year-on-year as multiple new logistics port projects are still in the nurturing stage, the logistics business is under short-term pressure. As a result, the company's logistics business achieved a net income attributable to the parent of 0.527 billion Hong Kong dollars, a year-on-year increase of 34.39%.
The bank expects shenzhen int'l to have revenues of 15.985 billion Hong Kong dollars, 17.284 billion Hong Kong dollars, and 17.834 billion Hong Kong dollars in 2024, 2025, and 2026 respectively, with year-on-year changes of -22%, +8%, and +3%. The net income attributable to the parent is expected to be 2.91 billion Hong Kong dollars, 3.893 billion Hong Kong dollars, and 3.113 billion Hong Kong dollars for the same respective years, with year-on-year changes of +53%, +34%, and -20%. The corresponding EPS are projected to be 1.21 Hong Kong dollars, 1.62 Hong Kong dollars, and 1.29 Hong Kong dollars, with corresponding PEs of 5.16, 3.86, and 4.82 times. The company holds high-quality assets, consistently provides high dividends, has a clear path for future value appreciation, and maintains a "buy" rating.
