Logistics Market – ChinaFebruary 2012
Executive Summary                Logistics market value in China is expected to reach USD x tr by 20‐‐, growing at a CAGR...
•Introduction•Market Overview•Drivers & Challenges                                    LE          MP•Government Initiative...
Logistics Industry Framework                                                       d1                                     ...
Integrated International Logistics Services            Type 7                                                             ...
China was ranked X based on the Logistics Performance  Index Logistics Performance Index                                  ...
Logistics market in China, exhibiting rapid development with  annual double digit growth through 20‐‐ Logistics Market – O...
Growth in logistics value‐added along with its consistent  share in GDP and … Logistics Value‐Added (1/2)               • ...
…tertiary industry indicates the expansion of logistics  market in China Logistics Value‐Added (1/2)           • Total log...
Drivers & Challenges – Summary                                                                      Challenges            ...
Powerful Chinese economy  serves to build a strong  foundation for the logistics sector Healthy Economy                   ...
Rising income coupled with increasing consumption will  aggravate the country’s logistics requirement Rising Income and In...
Rise in e‐commerce has augmented the domestic demand  for improved logistics Growing E‐commerce Business                  ...
Movement of manufacturing hubs to the West, provides significant growth opportunity for logistics marketManufacturers Shif...
Growing retail sales add to the rising demand for logistics in  the country Strong Retail Sales                           ...
Underdeveloped cold chain logistics provides significant  opportunity for further growth  Opportunity for Cold Chain Logis...
Pharmaceutical logistics is expected to grow with the  growth of Chinese pharmaceutical market  Opportunity for Pharmaceut...
Rise in transportation fees, fuel costs and labor costs  coupled with… Rise in Logistics Costs with Low Efficiency (1/2)  ...
…low efficiency is a major challenge to the logistics market Rise in Logistics Costs with Low Efficiency (2/2) • Finding 1...
Lack of modern logistics facilities is a huge set back for the  logistics sector Lack of Modern Logistics Facilities      ...
European debt crisis hinders China’s overall growth,  hampering  logistics escalation Debt Crisis in Europe               ...
Government has implemented certain measures to  reorganize the regulatory structure of the logistics industry             ...
Government has issued new guidelines to solve the long‐ term problems in the logistics industry                       Logi...
Government’s future plans for the development of logistics  industry                              Medium‐and Long‐term Dev...
Trends – Summary                                     Development of National                                              ...
Major Domestic Public Companies – Summary (1/2)    Net Income      120                                                 Siz...
Major Domestic Public Companies – Summary (2/2) Total Income and Profit for Major Domestic Companies of 2010              ...
Domestic Company – Company 1 Company Information                                                               Locations –...
Domestic Company – Company 1 Financial Snapshot                                                                   Key Rati...
Domestic Company – Company 1 Key Business Segments                                                                        ...
Logistics market is expected to grow at a CAGR of X% to reach USD y tn by 20‐‐ Logistics industry has become a leading ind...
Thank you for the attentionLogistics Market ‐ China report is a part of Netscribes’ Logistics Series. For more detailed in...
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Market Research Report : Logistics Market in China 2012


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For the complete report, get in touch with us at : info@netscribes.com

The market is expected to get impetus amid growing Chinese economy coupled with increasing domestic consumption, resulting in increased demand for logistics.

The report begins with an introduction section which comprises an illustration of the logistics industry framework wherein it depicts the structure of the market, including the regulator, infrastructure, carriers, delivery type and service providers. Work flow model of the integrated international logistics services is also included in the report providing a better understanding of the overall transaction system. This is followed by the market overview of logistics market in China, describing the global positioning of China’s logistics market, based on the logistics performance index. This section provides details on the domestic logistics industry size in terms of logistics market value and expected growth during 2005-15. The report also discusses the importance of logistics value-added, providing the growth in value terms alongwith the share of the total value-added of the logistics industry in both China’s tertiary industry and GDP.

Factors driving the growth of logistics market in China are also explained in detail that includes healthy economy, rising income and increasing domestic consumption, growing e-commerce business, manufacturers shift to the west, strong retail sales, opportunity from cold chain logistics and opportunity from pharmaceutical logistics offering significant growth prospects for the Chinese logistics market.

Players operating in the market also face challenges impeding their development and growth. Major challenges identified in the report include rise in logistics costs with low efficiency, lack of modern logistics facilities, inadequate warehouse space, regional protectionism, European debt crisis, human resource constraints and preference towards self management restricting the growth of the market.

The report also provides the role of the government in the country’s logistics sector. It mentions the steps taken by the government to reorganize the logistics related administrative associations, describing the fragmented regulatory structure of the logistics sector. Rejuvenating program for logistics industry along with the development plan of commercial logistics has been provided. Further, it mentions the key focus areas under the 12th Five Year Plan catering to the logistics sector. It also mentions the government’s future plans for the development of logistics industry.

Emerging trends in the logistics market include development of national transport infrastructure, market consolidation, logistics outsourcing, inland expansion of third party logistics providers and rising investments in the logistics sector.

The competition section outlays the competitive landscape of the logistics industry in China briefing about the domestic and foreign players existing in the

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Market Research Report : Logistics Market in China 2012

  1. 1. Logistics Market – ChinaFebruary 2012
  2. 2. Executive Summary  Logistics market value in China is expected to reach USD x tr by 20‐‐, growing at a CAGR of z% from USD y bn in  Market 20‐‐  Industrial products accounted for a major share of x% of the logistics market value in 20‐‐ Drivers: Challenges: ‐ Healthy Economy ‐ Rise in Logistics Costs with Low Efficiency    ‐ Rising Income and Increasing Domestic Consumption ‐ Lack of Modern Logistics Facilities Drivers &  LE ‐ Growing E‐commerce Business ‐ Inadequate Warehouse Space Challenges ‐ Manufacturers’ Shift to the West ‐ Regional Protectionism P ‐ Strong Retail Sales ‐ European Debt Crisis ‐ Opportunity from Cold Chain Logistics ‐ Constraints in Human Resources M ‐ Opportunity from Pharmaceutical Logistics ‐ Preference towards Self Management A  Reorganization of Logistics‐Related Administrative Institutions in 20‐‐ S  Fragmented Regulatory FrameworkGovernment   Rejuvenating Program for Logistics Industry (20‐ ‐‐20‐ ‐) Initiatives  Development Plan of Commercial Logistics (20‐ ‐)  Logistics Key Focus Areas under the 12th Five Year Plan (20‐‐ ‐20‐ ‐)  Medium‐and Long‐term Development Plan of Logistics Industry (20‐ ‐ ‐20‐ ‐)  Development of National Transport Infrastructure   Market Consolidation Trends  Logistics Outsourcing   Inland Expansion of Third Party Logistics  Rising Investments  Established foreign companies including Company 1,Company 2, Company 3, andCompany 4; and Hong Kong Competition based Company 5 in China’s Logistics Market, indicates more fierce  competition for the domestic players  Key domestic players in the market include company 1, Company 2, Company 3, Company 4 and Company 5 LOGISTICS MARKET IN CHINA 2012.PPT 2
  3. 3. •Introduction•Market Overview•Drivers & Challenges LE   MP•Government Initiatives S A• Trends•Mergers & Acquisitions •Competition•Key Takeaways LOGISTICS MARKET IN CHINA 2012.PPT 3
  4. 4. Logistics Industry Framework d1 d2 LE   d6 c1 b1 MP b5 a5 S a1 A b2 X d3 a2 a4 d5 c2 b4 b3 a3 A d4 B c3 C DSource: LOGISTICS MARKET IN CHINA 2012.PPT 4
  5. 5. Integrated International Logistics Services Type 7 Type 1 LE   P Type 6 M Type 2 Type 5  S A Xx Xx Type 3 Type 4Source: LOGISTICS MARKET IN CHINA 2012.PPT 5
  6. 6. China was ranked X based on the Logistics Performance  Index Logistics Performance Index Logistics Performance‐wise Rank (20‐‐) Rank Economy Rank Economy 1 Country 1 16 Country 16   • Logistics performance of different economies has been  measured by the World Bank, by using the Logistics  LE 2 Country 2 17 Country 17 Performance Index  3 Country 3 18 Country 18 P • Logistics Performance Index (LPI) is the a countries  score based on the weighted average of six chief  4 Country 4 19 Country 19 M criteria: 5 Country 5 20 Country 20 A  Efficiency of the clearance process 6 Country 6 21 Country 21 S  Quality of infrastructure associated with trade and  transport 7 Country 7 22 Country 22  Ease of arranging competitively priced shipments 8 Country 8 23 Country 23  Capability and quality of logistics services  Ability to track and trace consignments 9 Country 9 24 Country 24  Efficiency in delivery time 10 Country 10 25 Country 25 • In 20‐‐, among the x evaluated economies, China  11 Country 11 26 Country 26 ranked y • However, China topped amongst the lower‐middle  12 Country 12 27 Country 27 income countries 13 Country 13 28 Country 28  Developed economies or high income countries, such  14 Country 14 29 Country 29 as X led the index, followed by Y and Z 15 Country 15 30 Country 30Source: LOGISTICS MARKET IN CHINA 2012.PPT 6
  7. 7. Logistics market in China, exhibiting rapid development with  annual double digit growth through 20‐‐ Logistics Market – Overview Logistics Market Value and Growth • Logistics industry acting as a bridge between the value  USD tr chain from production to sales, plays a key role in  40 35.6 31.2 China’s smooth economic development Z% 27.4   30 24.0  Logistics market value is expected to reach USD x tr in 20‐‐,  21.1 LE 20 18.5 growing at a CAGR of y% during 20‐‐‐ ‐‐ 13.3 14.3 11.1 8.8 P • Higher logistics demand coefficient indicates bigger  10 7.1 logistics market  M 0  In 20‐‐, logistics market growth slowed down with y‐o‐y 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐e 20‐‐e 20‐‐e 20‐‐e 20‐‐e global financial crisis S A growth rate reduced to x% from y% achieved in 20‐‐, due to   However, logistics demand coefficient was x in 2010, up  from y in 2009 and logistics market value reached a record  high of USD z tr in 20‐‐, up by y % y‐o‐y, exhibiting a  Logistics Market Value Category‐wise(20‐‐) B1% phenomenal recovery from the global financial crisis A D C1% B E D1%  Industrial products accounted for a massive share of z%  E1% of the total logistics value in 20‐‐, followed by the  C imported and agricultural products with x% and y%  respectively A1%Source: LOGISTICS MARKET IN CHINA 2012.PPT 7
  8. 8. Growth in logistics value‐added along with its consistent  share in GDP and … Logistics Value‐Added (1/2) • Steadily increasing logistics value‐added, denotes a growing logistics market over the time period    20‐‐‐‐‐ LE • Higher logistics value added signifies bigger logistics market P  Logistics value added is expected to grow at a CAGR of x% during the five year period 20‐‐‐‐‐ amounting to  USD ybn by 20‐‐ S AM Growth of Logistics Value‐Added USD bn 1,000 Y% x11 x10 x9 X% x8 x6 x7 500 x4 x5 x2 x3 x1 0 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐e 20‐‐e 20‐‐e 20‐‐e 20‐‐eSource: China Federation of Logistics and Purchasing; Li Fung Group Note: 2010 Exchange Rate has been used for all conversions LOGISTICS MARKET IN CHINA 2012.PPT 8
  9. 9. …tertiary industry indicates the expansion of logistics  market in China Logistics Value‐Added (1/2) • Total logistics value‐added reached USDx bn, representing y% of the GDP in 20‐‐, growing at a  CAGR of z%, from USD y bn, representing x% share of the GDP in 20‐‐ • Logistics sector has managed to grow as fast as the tertiary market and the national economy as  there has been a stable growth in the share of the total value‐added of the logistics industry in  both China’s tertiary industry and GDP, during 20‐‐‐‐‐ LE   Year MP Total Value‐Added  Y‐O‐Y Growth Share in the Tertiary  Share in GDP A (USD bn) (%) Industry (%) (%) 20‐‐ 20‐‐ 20‐‐ x1 x2 x3 S y1 y2 y3 z1 z2 z3 a1 a2 a3 20‐‐ x4 y4 z4 a4 20‐‐ x5 y5 z5 a5Source: LOGISTICS MARKET IN CHINA 2012.PPT 9
  10. 10. Drivers & Challenges – Summary Challenges Rise in Logistics Costs with Low  Efficiency  Drivers LE   Lack of Modern Logistics Facilities P Healthy Economy Inadequate Warehouse Space M Rising Income and Increasing  Regional Protectionism A Domestic Consumption Growing E‐commerce Business Manufacturers Shift to the West S European Debt Crisis Constraints in Human Resources Self Management Mentality Strong Retail Sales Opportunity from Cold Chain Logistics Opportunity from Pharmaceutical  Logistics LOGISTICS MARKET IN CHINA 2012.PPT 10
  11. 11. Powerful Chinese economy  serves to build a strong  foundation for the logistics sector Healthy Economy Impact • Finding 1 • Finding 2   • Finding 3 P LE Growth of GDP S AM Growth of Foreign‐exchange Reserves USD bn USD bn x410,000 X% 4,000 Y% y4 8,000 y3 x3 3,000 x1 x2 6,000 2,000 4,000 1,000 y2 2,000 y1 0 0 20‐‐ 20‐‐ 20‐‐e 20‐‐e 20‐‐ 20‐‐ 20‐‐ 20‐‐Source: LOGISTICS MARKET IN CHINA 2012.PPT 11
  12. 12. Rising income coupled with increasing consumption will  aggravate the country’s logistics requirement Rising Income and Increasing Domestic Consumption Impact • Finding 1 • Finding 2   • Finding 3 LE • Finding 4 M Urban Disposable Income (per household)P Urban Consumer Spending USD bn 20,000 15,000 X% S x3 A USD bn 5,000 4,000 Y% y3 x2 3,000 10,000 y2 2,000 5,000 x1 1,000 y1 0 0 20‐‐ 20‐‐e 20‐‐e 20‐‐ 20‐‐e 20‐‐‐e Increasing Domestic  Higher logistics  Rising Income Consumption requirementsSource: i‐Newswire; PWC LOGISTICS MARKET IN CHINA 2012.PPT 12
  13. 13. Rise in e‐commerce has augmented the domestic demand  for improved logistics Growing E‐commerce Business Impact • Finding 1 • Finding 2 LE   MP Rise in E‐commerce S A Cost Structure Per Parcel USD bn A B C D 3,000 x7 2,500 X% x6 2011 A1 B1 C1 D1 2,000 x5 1,500 x4 x3 1,000 x1 x2 500 0 20‐‐ 20‐‐ 20‐‐e 20‐‐e 20‐‐e 20‐‐e 20‐‐eSource: LOGISTICS MARKET IN CHINA 2012.PPT 13
  14. 14. Movement of manufacturing hubs to the West, provides significant growth opportunity for logistics marketManufacturers Shift to the West LE   Impact• Finding 1• Finding 2 MP S A Major  manufacturing,  Shenyang consumption and  Beijing distribution hubs Tianjin Dalian Taiyuan Qingdao Jinan Xian Lianyungang A Nanjing Chengdu Shanghai B Chongqing Ningbo Wuhan Hangzhou C Xiamen D Kunming Guangzhou Foshan Shenzhen E F LOGISTICS MARKET IN CHINA 2012.PPT 14
  15. 15. Growing retail sales add to the rising demand for logistics in  the country Strong Retail Sales Impact • Finding 1 Annual Retail Sales of Consumer Goods LE   A B 17.1% Y MP • Point 1 • Point 2 A3,000 X y2 S2,000 x21,000 x1 y1 0 20‐‐ 20‐‐ Methodology adopted by the retailers to tackle the logistics issue can be a key differentiator among competitors Methodology adopted by the retailers to tackle the logistics issue can be a key differentiator among competitors • Type 1 • Type 2 • Type 3 • Type 4 • Type 5Source: LOGISTICS MARKET IN CHINA 2012.PPT 15
  16. 16. Underdeveloped cold chain logistics provides significant  opportunity for further growth  Opportunity for Cold Chain Logistics Impact • Finding 1 • Finding 2 • Finding 3 LE   MP Cold Chain Service Demand & Supply Gap USA China S A Point 1 X% Y% Foreign Investors are Attracted by The Enormous Growth Potential of Domestic Cold Chain Logistics Market Date Description •Point 1 Jan 20‐‐ •Point 2 Apr 20‐‐ •Point 3Source: LOGISTICS MARKET IN CHINA 2012.PPT 16
  17. 17. Pharmaceutical logistics is expected to grow with the  growth of Chinese pharmaceutical market  Opportunity for Pharmaceutical Logistics Impact • Finding 1 Growth of Pharmaceutical Market  • Finding 2   USD bn x3 LE 200 X% 150 MP 100 50 x1 x2 S A China is being considered as an emerging market, driving  0 Mar20‐‐ 20‐‐ 20‐‐ Government’s support for the development of modern  up demand for Western drugs pharmaceutical logistics • Point 1 • Point 1 • Point 2 • Point 2 • Point 3Source: LOGISTICS MARKET IN CHINA 2012.PPT 17
  18. 18. Rise in transportation fees, fuel costs and labor costs  coupled with… Rise in Logistics Costs with Low Efficiency (1/2) Impact • Finding 1 • Finding 2 • Finding 3 • Finding 4 LE   MP USD bn Rise in Logistics Cost X% S A Ratio of Total Logistics Cost to GDP (20‐‐) % 1,200 x2 x3 20 x1 1,000 x1 800 15 600 10 x2 400 5 200 0 0 20‐‐ 20‐‐ Jan‐Oct 20‐‐ Country 1 Country 2Source: LOGISTICS MARKET IN CHINA 2012.PPT 18
  19. 19. …low efficiency is a major challenge to the logistics market Rise in Logistics Costs with Low Efficiency (2/2) • Finding 1 Share in Total Logistics Cost LE  Increase in Transportation Fees % A B C MP USD bn 15.6% A100 a113 a2 a3 a4 a5 600 x2 x1 S 80 b1 b2 b3 b4 b5 400 60 40 c1 c2 c3 c4 c5 200 20 0 0 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ Y‐O‐Y Growth  Point 1 Category Sub‐Category (Jan‐Oct 20‐‐) A1 x1 A A2 x2 B1 x3 B B2 x4Source: LOGISTICS MARKET IN CHINA 2012.PPT 19
  20. 20. Lack of modern logistics facilities is a huge set back for the  logistics sector Lack of Modern Logistics Facilities Impact • Finding 1 • Finding 2 • Finding 3 LE   MP •Effect 1 A Cause •Effect 2 S Limited Supply of Modern Logistics Space  (20‐‐) A B sq m X 600 b1 400 Point 1 a1 200 0 20‐‐Source: LOGISTICS MARKET IN CHINA 2012.PPT 20
  21. 21. European debt crisis hinders China’s overall growth,  hampering  logistics escalation Debt Crisis in Europe Impact • Finding 1 • Finding 2 • Finding 3 • Finding 4 LE   MP S Decline in New Export Order Sub‐Index X% A 60 x1 x2 • Point 1 40 • Point 2 20 0 Jan 20‐‐ Feb 20‐‐ Point 3 Point 3Source: LOGISTICS MARKET IN CHINA 2012.PPT 21
  22. 22. Government has implemented certain measures to  reorganize the regulatory structure of the logistics industry LE   P Reorganization of Logistics‐Related Administrative Institutions in 20‐‐ SA M • Finding 1 LE   • Finding 2 M P S A x1 y1 x2 X Z Y x3 y2Source: LOGISTICS MARKET IN CHINA 2012.PPT 22
  23. 23. Government has issued new guidelines to solve the long‐ term problems in the logistics industry Logistics Key Focus Areas under the 12th Five Year Plan (20‐‐‐20‐‐) A1 B1 C1 D1 E1 F1 G1   H1 J1 P LE Category CAGR Target set by NDRC and CFLP  by 20‐‐ SAM X1 X2 X3 X% Y% Z%Source: LOGISTICS MARKET IN CHINA 2012.PPT 23
  24. 24. Government’s future plans for the development of logistics  industry  Medium‐and Long‐term Development Plan of Logistics Industry (20‐‐‐20‐‐) • Finding 1 • Finding 2 • Finding 3 LE   MP A SA B C DSource: Li Fung Group LOGISTICS MARKET IN CHINA 2012.PPT 24
  25. 25. Trends – Summary  Development of National  LE   Transport Infrastructure  MP Rising Investments S A Market Consolidation Key Trends  Inland Expansion of 3PLs Logistics Outsourcing  BOTTLED WATER MARKET IN CHINA 2011.PPT LOGISTICS MARKET IN CHINA 2012.PPT 25
  26. 26. Major Domestic Public Companies – Summary (1/2) Net Income 120 Size of the Bubble represents Market  110 Capitalization in USD mn 100 d1   90 LE 80 P 70 60 50 40 30 20 a1 S AM 10 b1 c1 0 Revenue 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 Company 1 Company 2 Company 3 Company 4Source: LOGISTICS MARKET IN CHINA 2012.PPT 26
  27. 27. Major Domestic Public Companies – Summary (2/2) Total Income and Profit for Major Domestic Companies of 2010 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 USD mn Company 1 y1 LE   x1 MP x2 S A Company 2 y2 x3 Company 3 y3 x4 X Y Company 4 y4Source: LOGISTICS MARKET IN CHINA 2012.PPT 27
  28. 28. Domestic Company – Company 1 Company Information Locations – China Corporate Address City 1, Country 1 Tel No. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Fax No. Website ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ LE   P Year of Incorporation 20‐‐ Ticker Symbol ‐‐‐‐ Stock Exchange Products and Services ‐‐‐‐ S AM Headquarter Other Offices Category Products/Services Category 1 Product Key People Category 2 Product Category 3 Product Name Designation Category 4 Product Person 1 Designation 1 Person 2 Designation 2 Category 5 Product Person 3 Designation 3 Person 4,  Designation 4Source: LOGISTICS MARKET IN CHINA 2012.PPT 28
  29. 29. Domestic Company – Company 1 Financial Snapshot Key Ratios y‐o‐y Revenue Revenue Profit Particulars  change  2010 2009 2008 2007 USD mn USD mn  (2010‐09) Profit / Loss 600 x4 30 Profitability Ratios Operating Margin ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ x3 400 x2 20 Net Margin ‐‐ ‐‐ ‐‐ ‐‐‐ ‐‐‐   x1 Profit Before Tax Margin ‐‐ ‐‐ ‐‐ ‐‐‐ ‐‐ LE 200 10 Return on Equity ‐‐ ‐‐ ‐‐ ‐‐‐ ‐‐ 0 0 Return on Capital Employed ‐‐ ‐‐ ‐‐ ‐‐‐ ‐‐ P 20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Working Capital ‐‐ ‐‐ ‐‐ ‐‐‐ ‐‐ Return on Assets ‐‐ ‐‐ ‐‐ ‐‐‐ ‐‐ Financial Summary  Return on Fixed Assets ‐‐ ‐‐ ‐‐ ‐‐‐ ‐‐ • The company incurred a net profit of USD x1 mn in FY 20‐‐, as  compared to net profit of USD x2 mn in FY 20‐‐ S • The company reported total Income of  USD  y1 mn in FY 20‐‐,  registering an increase of y% over FY 20‐‐ • The company earned an operating margin of x% in FY 20‐‐ an  AM Cost Ratios Operating costs (% of Sales) Administration costs (% of  Sales) Interest costs (% of Sales) Liquidity Ratios ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐‐ ‐‐‐ Current Ratio ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ increase ofz percentage points over FY 20‐‐ Cash Ratio ‐‐ ‐‐ ‐‐ ‐‐ ‐‐‐ • The company reported debt to equity ratio of y1 in FY 20‐‐, a  Leverage Ratios decrease of x% over FY 20‐‐ Debt to Equity Ratio ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ Debt to Capital Ratio ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ Financial Summary  Interest Coverage Ratio ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ Indicators Value (dd/mm/yy) Efficiency Ratios Market Capitalization (USD) Fixed Asset Turnover ‐‐ ‐‐ ‐‐‐ ‐‐‐ ‐‐ ‐‐ Asset Turnover ‐‐ ‐‐ ‐‐‐ ‐‐‐ ‐‐ Total Enterprise Value (USD) ‐‐ Current Asset Turnover ‐‐ ‐‐ ‐‐‐ ‐‐‐ ‐‐ EPS (USD) ‐‐ Working Capital Turnover ‐‐ ‐‐ ‐‐‐ ‐‐ ‐‐ PE Ratio (Absolute) ‐ Capital Employed Turnover ‐‐ ‐‐ ‐‐‐ ‐‐ ‐‐Source: LOGISTICS MARKET IN CHINA 2012.PPT 29
  30. 30. Domestic Company – Company 1 Key Business Segments Key Geographic Segments A D B C Country 1 100% 100% b2 b3 d3 b4 d4 80%   80% 60% LE 60% a1 c2 c3 c4 40% 40% 20% 20% 0% 20‐‐ 20‐‐ 20‐‐ 20‐‐ MP 0% 20‐‐ Key Recent Developments Description  S A News • Company 1 was formerly known as Company 2. and had changed its name in Jun 20‐‐  Company provides integrated logistics services in the  Country 1 – Milk‐run service covers more than x suppliers in the areas of A, B, C, D, E and F, with annual  output of over y TEU – International freight forwarding services has an annual output exceeding zTEU Overview – Company owns x vessels to handle bulk cargo with capacity of more than y ton and annual transportation capacity by  railway exceeds z ton – Company has x sophisticated distribution centers for supply parts, with a total warehousing space of more than y sq m  Company delivers within  x to y days to over z large and medium sized cities and within z days to over x county‐level cities  all over Country 1Source: LOGISTICS MARKET IN CHINA 2012.PPT 30
  31. 31. Logistics market is expected to grow at a CAGR of X% to reach USD y tn by 20‐‐ Logistics industry has become a leading industry in Chinas national economy and is playing a guiding and supporting  role in the overall national economic situation  Opportunities in the  Market Size Government  Market Initiatives   USD tn Government has been  LE Healthy economy coupled  40 x11 x10 with  rising income and  30 X% x9 taking some major  x8 P increasing domestic  x7 initiatives for the  x6 20 x5 development of the  x4 consumption act as a driver  x2 x3 M 10 x1 logistics sector for the growing demand of  A logistics in the country 0 However, presence of  S 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐e 20‐‐e 20‐‐e 20‐‐e 20‐‐e multiple government  Growing e‐commerce  bodies associated with  business and relocation of  the jurisdiction of the  manufacturers to the west  logistics sector, creates  provides opportunity for  high‐level coordination  growth in the logistics sector  Challenges failure  • Rise in Logistics Costs with Low Efficiency  Government has issued  Growing retail sales,  • Lack of Modern Logistics Facilities new guidelines to solve  opportunity from cold chain  • Inadequate Warehouse Space the long‐term problems  • Regional Protectionism in the logistics industry  and pharmaceutical logistics  • European Debt Crisis tender prospects for future  via its 12th Five Year Plan  • Constraints in Human Resources growth and medium and long‐ • Inclination towards Self Management term development plans LOGISTICS MARKET IN CHINA 2012.PPT 31
  32. 32. Thank you for the attentionLogistics Market ‐ China report is a part of Netscribes’ Logistics Series. For more detailed information or customized research requirements please contact:Jitendra PunjabiPhone: +91 33 4064 6215E‐Mail: jitendra.punjabi@netscribes.comAbout NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. LOGISTICS MARKET IN CHINA 2012.PPT 32