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Stock Analysis & ValuationGuangdong Jushen Logistics Co., Ltd. (001202.SZ)

Professional Stock Screener
Previous Close
$17.44
Sector Valuation Confidence Level
Moderate
Valuation methodValue, $Upside, %
Artificial intelligence (AI)22.0326
Intrinsic value (DCF)347.001890
Graham-Dodd Method4.08-77
Graham Formula8.07-54

Strategic Investment Analysis

Company Overview

Guangdong Jushen Logistics Co., Ltd. is a prominent integrated supply chain logistics provider headquartered in Foshan, China, serving the dynamic Pearl River Delta manufacturing and industrial hub. Founded in 2011, the company specializes in comprehensive logistics solutions including warehousing, transportation management, distribution services, freight forwarding, and cargo handling operations. Operating within the Industrials sector's Integrated Freight & Logistics industry, Jushen Logistics plays a critical role in China's extensive supply chain ecosystem, connecting manufacturing centers with domestic and international markets. The company's strategic location in Guangdong province positions it to capitalize on one of China's most economically vibrant regions, serving diverse industrial sectors requiring sophisticated logistics support. As China continues to develop its internal consumption markets and maintain its manufacturing dominance, companies like Jushen Logistics provide essential infrastructure for efficient goods movement and supply chain optimization. The company's integrated service approach allows clients to streamline their logistics operations through a single provider, enhancing efficiency and reducing operational complexity in an increasingly competitive market environment.

Investment Summary

Guangdong Jushen Logistics presents a mixed investment profile with moderate financial performance in a highly competitive sector. The company generated CNY 1.04 billion in revenue with net income of CNY 81.6 million, translating to a net margin of approximately 7.8%, which is reasonable for the logistics industry. The company maintains a conservative financial structure with a beta of 0.489, suggesting lower volatility than the broader market. However, the negative capital expenditures of CNY -203 million indicate significant investment outflows, potentially for fleet expansion or infrastructure development. The dividend payout of CNY 0.23 per share provides income appeal, but investors should monitor the company's ability to maintain profitability amid China's economic fluctuations and intense competition in the logistics sector. The company's regional focus in Guangdong provides both concentration risk and potential for capturing regional economic growth.

Competitive Analysis

Guangdong Jushen Logistics operates in China's highly fragmented and competitive logistics market, where scale, network efficiency, and technological capabilities determine competitive positioning. The company's primary competitive advantage lies in its integrated service model and strategic location in Foshan, a key industrial city within the Pearl River Delta manufacturing cluster. This geographic positioning allows Jushen to serve one of China's most economically dynamic regions with proximity to major ports and transportation infrastructure. However, the company faces significant challenges against larger national and global competitors with more extensive networks and technological resources. The Chinese logistics market is characterized by intense price competition, particularly in basic transportation and warehousing services where differentiation is difficult. Jushen's moderate scale (CNY 1.04 billion revenue) positions it as a regional player rather than a national leader, limiting its ability to compete on cost efficiency with larger players. The company's competitive positioning likely relies on developing strong customer relationships and specialized service capabilities for specific industrial sectors within its regional market. Success will depend on the company's ability to maintain service quality while controlling costs, and potentially developing niche specializations that larger competitors may overlook. The ongoing digital transformation in logistics presents both challenges and opportunities for regional players like Jushen to enhance operational efficiency and customer service.

Major Competitors

  • SF Holding Co., Ltd. (002352.SZ): SF Holding is China's largest express delivery company with extensive national network coverage and significant technological investments. The company's strengths include comprehensive service offerings, strong brand recognition, and advanced logistics technology. However, SF faces intense competition in the express delivery segment and higher cost structures compared to regional specialists like Jushen Logistics. SF's scale allows for efficiency advantages but may limit flexibility in serving specialized regional markets.
  • YTO Express Group Co., Ltd. (600233.SS): YTO Express is one of China's major express delivery companies with nationwide network coverage and strong parcel delivery capabilities. The company benefits from e-commerce growth and established infrastructure. Weaknesses include margin pressure from intense competition and limited differentiation in service quality. Compared to Jushen, YTO has greater scale but may be less focused on integrated logistics solutions for industrial clients.
  • ZTO Express (Cayman) Inc. (002468.SZ): ZTO Express is a leading express delivery company in China with strong market position and efficient network operations. The company's strengths include cost leadership and reliable service quality. However, ZTO faces challenges from price competition and regulatory changes in the logistics sector. Unlike Jushen's integrated approach, ZTO focuses primarily on parcel delivery, representing different service specialization within the broader logistics market.
  • CIMC Vehicles (Group) Co., Ltd. (600787.SS): CIMC Vehicles manufactures transportation equipment including trailers and container vehicles used in logistics operations. While not a direct service competitor, the company influences the logistics sector through equipment supply and technology. CIMC's strengths include manufacturing scale and product innovation, but it operates in a different segment of the logistics value chain compared to Jushen's service-oriented business model.
  • Huayu Logistics Co., Ltd. (603128.SS): Huayu Logistics provides comprehensive logistics services including freight forwarding and supply chain management, making it a more direct competitor to Jushen. The company's strengths include diversified service offerings and established customer relationships. However, Huayu faces similar challenges of regional competition and margin pressure. Both companies operate in the competitive mid-tier segment of China's logistics market with regional focuses.
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