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Stock Analysis & ValuationChina Master Logistics Co., Ltd. (603967.SS)

Professional Stock Screener
Previous Close
$12.78
Sector Valuation Confidence Level
Moderate
Valuation methodValue, $Upside, %
Artificial intelligence (AI)21.3267
Intrinsic value (DCF)3.86-70
Graham-Dodd Method2.26-82
Graham Formula47.76274

Strategic Investment Analysis

Company Overview

China Master Logistics Co., Ltd. is a comprehensive integrated logistics provider headquartered in Qingdao, China, operating in the dynamic Chinese freight and logistics sector. As a subsidiary of Qingdao Zhongchuang United Investment Development Co. Ltd., the company delivers a diversified portfolio of services including sophisticated freight forwarding, container freight station (CFS) operations, shipping agency services for various vessel types, coastal transportation, and specialized project and bulk logistics. China Master Logistics serves as a critical link in global and domestic supply chains, offering end-to-end solutions from customs clearance and supply chain management to container leasing and technical services. Operating within the industrials sector, the company leverages China's position as a global manufacturing and trade hub, positioning itself to capitalize on the growing demand for efficient logistics infrastructure. With its integrated service model and strategic location in one of China's major port cities, China Master Logistics plays a vital role in facilitating trade flows and supporting industrial development across multiple sectors.

Investment Summary

China Master Logistics presents a mixed investment profile with moderate market capitalization of approximately CNY 4.04 billion. The company demonstrates reasonable profitability with net income of CNY 252.7 million on revenue of CNY 11.84 billion, translating to diluted EPS of CNY 0.73. A positive dividend yield is indicated with a dividend per share of CNY 0.60. The company maintains a conservative financial structure with total debt of CNY 436.8 million against cash reserves of CNY 584.3 million, suggesting manageable leverage. Operating cash flow of CNY 482.5 million supports ongoing operations, though capital expenditures of CNY -182.6 million indicate moderate investment activity. The low beta of 0.387 suggests lower volatility compared to the broader market, potentially appealing to risk-averse investors. However, investors should monitor the competitive Chinese logistics landscape and the company's ability to maintain margins in a capital-intensive industry.

Competitive Analysis

China Master Logistics operates in the highly fragmented and competitive Chinese integrated logistics market, where scale, network coverage, and service differentiation are critical success factors. The company's competitive positioning relies on its integrated service model that combines freight forwarding, CFS operations, and shipping agency services, allowing it to offer comprehensive solutions to clients. Its location in Qingdao, a major port city, provides strategic advantages for maritime logistics operations. The company's subsidiary relationship with Qingdao Zhongchuang United Investment Development Co. Ltd. may offer financial stability and potential synergies. However, China Master Logistics faces intense competition from both state-owned enterprises with extensive infrastructure and larger private logistics providers with broader national and international networks. The company's moderate market capitalization suggests it operates as a regional or niche player rather than a national leader. Its ability to compete effectively depends on operational efficiency, service quality, and maintaining strong client relationships in specific geographic or service segments. The integrated model provides cross-selling opportunities but requires significant operational expertise across multiple logistics disciplines. The company's focus on specialized services like project logistics and bulk logistics may help differentiate it from generalist competitors, though this specialization also limits its addressable market compared to broader logistics providers.

Major Competitors

  • COSCO Shipping Holdings Co., Ltd. (1919.HK): COSCO Shipping is one of China's largest state-owned shipping and logistics companies with global scale and extensive container fleet operations. Its strengths include massive scale, comprehensive global network, and strong government backing. However, as a much larger entity focused primarily on container shipping, it operates in different segments than China Master Logistics's integrated logistics model. COSCO's size provides cost advantages but may lack the flexibility and specialized services offered by smaller integrated providers.
  • COSCO SHIPPING Development Co., Ltd. (601866.SS): As part of the COSCO group, this company focuses on container leasing, logistics, and financing services. Its strengths include strong parent company backing and extensive container assets. It competes directly with China Master Logistics in container-related services but operates at a much larger scale with greater financial resources. However, its focus on container leasing represents only one segment of China Master Logistics's broader integrated service offering.
  • SF Holding Co., Ltd. (002352.SZ): SF Holding is China's leading express delivery company with expanding logistics and supply chain services. Its strengths include extensive domestic network, strong brand recognition, and technological capabilities. While primarily focused on express delivery, SF's expansion into integrated logistics represents competitive pressure. However, China Master Logistics's focus on freight forwarding and maritime logistics differentiates its service mix from SF's ground-based express dominance.
  • YTO Express Group Co., Ltd. (600233.SS): YTO Express is a major Chinese express delivery company with growing logistics capabilities. Its strengths include nationwide network coverage and competitive pricing. As with SF Holding, YTO's primary focus on parcel delivery creates different competitive dynamics than China Master Logistics's freight and maritime orientation. The companies operate in adjacent but distinct segments of the logistics market.
  • Yunda Holding Co., Ltd. (002120.SZ): Yunda is another major express delivery provider expanding into broader logistics services. Its competitive advantages include efficient operations and strong regional presence. Similar to other express companies, Yunda's core business differs from China Master Logistics's focus on integrated freight and maritime logistics, though both companies compete for supply chain management business as they expand their service portfolios.
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