Event:
As far as we have known, promotion plan of logistics industry is under the government’s incubation to boost the development of logistics, and it is expected to be the eleventh promotion plan.
Our Analysis and Estimation:
1. China’s logistics industry faces upgrade.
2. Benign political environment is provided by government to develop logistics industry.
3. The promotion plan of logistics industry may be reflected in four aspects:
1) It promotes the industrial integration;
2) It speeds up information construction of the industry;
3) It enhances the infrastructure construction of the logistics industry;
4) It impacts on tax preference and fiscal subsidies;
Investment Suggestion
The promotion plan of logistics industry is likely to be released, and it will boost the industrial upgrade and long-term development, which is substantially favorable to listed companies of the industry. Considering provisions might be concluded in the plan, we suggest investors give priorities on potential beneficiaries like China Railway Tielong Container Log. (600125), Zhongchu Development Stock (600787), Shenzhen Feima Int''l Supply Chain (002210) and Eternal Asia Supply Chain Management (002183); additionally, we maintain “Cautious” rating for the industry.