Sinotrans Logistics Development Platform surfaced Accumulate

Abstract Sinotrans system is China 's cross-border transportation logistics pioneer and leader , China National Foreign Trade Transportation ( Group ) Corporation ( Sinotrans ) is China's Sinotrans Group Limited, the predecessor , established in 1950 , is the sea, land and air international freight forwarding business . Sinoair reorganization of assets by the quality of air operations from China Sinotrans Group , the core of the main business of international air cargo agents, its market share stable domestic industry first. Since 1979, DHL began with Sinotrans joint venture between DHL operation China International Express began , has gone 35 years , in the process , Sinotrans learn the advanced management system and information support systems , access to enhance the competitiveness and international express business development.

International freight forwarding business platform & cross-border electricity providers , many years of experience profound knowledge of cross-border logistics . Freight forwarding company to build electronic business platform , adapted logistics customers increasingly smaller, more personalized demand trends , current international freight forwarding business in North China have all entered the electronic business platform . Beginning this year the company expects to cooperate with the PRD Customs Port , build cross-border electronic business platform , becoming a pioneer in this sunrise industry . Currently the rapid development of cross-border electricity providers , industry size over 2 trillion . Clearance is still the biggest barriers to cross-border e-commerce transactions , the company advantage in this business are: 1 , years of cross-border logistics experience , familiar with import and export clearance process ; 2 overseas countries leading network -intensive ; 3 , and customs form data butt , currently the only company to achieve the export of goods flow visualization ; 4, the cross-border logistics companies pioneered electronic business platform , ideas and execution have been ahead of competitors.

Earnings forecasts and investment advice. The company forecast 2013 ~ 2015 EPS of 0.79,0.91,1.07 yuan, respectively, corresponding to earnings ratio 15.1,13.0,11.1 times . Long-term valuation of the company is lower than the logistics industry average ( corresponding to 13 times in 2014 ), we believe the company line with international freight forwarding business platform , cross-border electricity suppliers to test the water in the Grand National Cross-border electricity providers continue to support the introduction of a policy of environment , coupled with the company subsequent advance payment in respect of the network , are likely to allow the market to recognize the vitality of the traditional industry leader plug in the wings of the new economy brought about a positive transformation , the company has accumulated decades of cross-border logistics field will Houjibofa , market attention is expected to continue to heat up, and DHL 's leadership in the Chinese international express market will continue to provide a safety cushion of profit growth . In summary , the company's upward flexibility, but the margin of safety is high enough , so we reiterate the company a "buy " rating.

Risk Warning . Global economic downturn ; international freight forwarding business platform and cross-border electricity providers try road twists and turns ; DHL termination of cooperation with the company ; Galaxy Aviation is not liquidated as planned.