EQS-News: CN Logistics : Guotai Junan maintained CN Logistics (2130.HK) at Accumulate rating with a target price of HK$11.00

Guotai Junan maintained CN Logistics (2130.HK) at Accumulate rating with a target price of HK$11.00

Guotai Junan has maintained CN Logistics International Holdings Limited (2130.HK) at "Accumulate" rating on 10 March 2022 with a target price of HK11.00, representing an upside of 6.8% from the same day closing price of HK$10.3.

Guotai Junan branded CNL as a growth promising with network expansion logistics service provider. Fueled by strong sales growth in luxury products in both Greater China and Europe, demand for freight forwarding services remains high. Benefiting from both higher freight rate and business expansion in overseas offices, the Company has demonstrated a significant growth in 2021, with revenue being increased by 26.6% YoY in 1-3Q21. The Company has also announced a profit alert of achieving not less than 45% YoY growth in net profit to shareholders for 2021.

Guotai Junan also pointed out that the disruption in supply chain caused by the pandemic and the higher requirements for freight forwarding service providers are expected to increase the industry concentration level, in which leading players are expected to benefit. Given strong fundamentals rooted from high-end logistics service know-how and business momentum already seen in Europe, CNL's organic growth in the coming years is expected to be promising. In addition, CNL's external business expansion is also expected to be driven by worldwide partnerships.

It is suggested that the Company enjoyed a higher valuation over the average, which can be justified by its distinguished freight forwarding services and higher-than-average growth projection. Therefore, Guotai Junan maintained the investment rating of "Accumulate" for CNL with a TP of HK$11.00.

Guotai Junan maintained CN Logistics (2130.HK) at Accumulate rating with a target price of HK$11.00

Guotai Junan has maintained CN Logistics International Holdings Limited (2130.HK) at "Accumulate" rating on 10 March 2022 with a target price of HK11.00, representing an upside of 6.8% from the same day closing price of HK$10.3.

Guotai Junan branded CNL as a growth promising with network expansion logistics service provider. Fueled by strong sales growth in luxury products in both Greater China and Europe, demand for freight forwarding services remains high. Benefiting from both higher freight rate and business expansion in overseas offices, the Company has demonstrated a significant growth in 2021, with revenue being increased by 26.6% YoY in 1-3Q21. The Company has also announced a profit alert of achieving not less than 45% YoY growth in net profit to shareholders for 2021.

Guotai Junan also pointed out that the disruption in supply chain caused by the pandemic and the higher requirements for freight forwarding service providers are expected to increase the industry concentration level, in which leading players are expected to benefit. Given strong fundamentals rooted from high-end logistics service know-how and business momentum already seen in Europe, CNL's organic growth in the coming years is expected to be promising. In addition, CNL's external business expansion is also expected to be driven by worldwide partnerships.

It is suggested that the Company enjoyed a higher valuation over the average, which can be justified by its distinguished freight forwarding services and higher-than-average growth projection. Therefore, Guotai Junan maintained the investment rating of "Accumulate" for CNL with a TP of HK$11.00.