Shanghai Jinjiang International Industrial Investment Co. Ltd.

Public (SHA: 600650)

Company Facts:

Shanghai Jinjiang International Industrial Investment Co. Ltd. (Jinjiang Investment) was known as Shanghai New Jinjiang Grand Hotel, and was established by Shanghai City Jinjiang (Group) Company in 1984. In 1992, the company transferred itself into shareholding limited company, and listed A-shares in Shanghai Stock Exchange. After one year, the company’s B-shares also launched in the same market. The ruling shareholder is Jinjiang International (Group) Co. Ltd.

The company is mainly engaged in vehicle services, tourism services, and logistic industry. Jinjiang Auto, one of the company’s subsidiaries, has over 8000 vehicles in operation, and is the leading company in car rental and leasing industry in Shanghai. One of the company’s shareholding subsidiaries, Jinhai Jieya International cargo transportation company has 32 branches in  cooperation networks covering all globally well-known logistic company, while the company’s another shareholding subsidiary, Shanghai Pudong warehouse Co. Ltd. has monopoly competitive advantages in airport logistic business.

Financial Overview

Related companies: (Name, relationship, and percentage of ownership/rights & interests):

Shanghai Volkswagen Xinya Taxi Co. Ltd. Shareholding company

Jinhai Jieya International Cargo Transportation Co. Ltd. Shareholding company

Jinjiang International (Group) Co. Ltd. Holding Company, percentage of ownership: 38.54%

Shanghai Wuqing Fridge-storage Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Jinjiang Business - trip Auto Service Co. Ltd.   Shareholding Sub-subsidiaries, percentage of ownership: 50%

Shanghai Jinyue Auto Consulting Service Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Meierjie New Jinjiang Dry-clean Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 75%

Shanghai JIading Jinjiang Auto Service Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 70%

Shanghai Jinjiang Public Transportation Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 93.92%

Shanghai Wusong Luoji Fridge-storage Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Rileng Food Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 50%

Shanghai Pacific Passenger Transportation Service Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Jinjiang Express Passenger Transportation Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Jinmao Auto Sale Service Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 50%

Shanghai Toyota Auto Servicing Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Jinjiang Auto Rental & Leasing Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Huayangnianhua Advertising Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 80%

Shanghai Nanpu Bridge Food Wholesales Trading Market Operation & Management Co.Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 95%

Shanghai Pudong Friendship Auto Service Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 87.83%

Shanghai Jinzhen Electronics Technology Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Business-trip Investment Consulting Co.Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai Jinjia Auto Trading Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai ShangHai Food Co.Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 95%

Shanghai Jinyong Auto Repairing & Servicing Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 80%

Shanghai Zhenxing Taxi Management Co.Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 100%

Shanghai China-Petroleum Jinyou Petrol Operation Co. Ltd. Shareholding Sub-subsidiaries, percentage of ownership: 76%

Shanghai Jinjiang Auto Service Co. Ltd. Shareholding Subsidiaries, percentage of ownership: 95%

Shanghai International Cooler Logistic Development Co. Ltd. Shareholding Subsidiaries, percentage of ownership: 95%

Shanghai Jinhai Jieya Logistic Management Co. Ltd. Shareholding Subsidiaries, percentage of ownership: 65%

Stock Health:

Highest in past 52 weeks: 18.39

Lowest in past 52 weeks: 7.65

As on 29 July, 2008

Open: 9.76     High: 9.77   Low: 9.55    Close: 9.63    Vol.:  965,257                 

Business Performance:

     Unite: RMB 10,000

 Daily Stats (last one month):

In the past eight trading sessions, Shanghai and Shenzhen Stock Exchange markets have been carrying on the pervious trends of rising stimulated by the growth of banking and realty plates. Especially, realty plate shows overall outstanding performance, I believe that this trend will show its continuity in couple of weeks.

Shanghai Jinjiang Industrial Investment Co. Ltd. has shown stable increase regarding to its stock price. I would like investors to pay attention to this particular stock and make their investment decision because after fairly long time fluctuations, the share price has dropped to below RMB 10 Yuan for now, comparing the theoretical value of RMB 18.78 Yuan; it seems that a good investment opportunity has started presenting for a middle-term.

Personally, I assume that the capital-inflow has started withdrawing as in the past three trading sessions; volume shows gradually reduction without too much leap-drop in stock price, which is theoretically considered as careful movements by the big player. Therefore, in my opinion, short-term investors are unlikely to win fruitful through this stock, but this is a chance for winning shareholders to reduce their holding on an expected price. I would like to suggest the short-term target price as not exceed RMB 10.39 Yuan as high capital pressure seems ahead over this price.

However, in a middle-term or long-term, this stock is a safe choice to invest because of the overall business performance of the company is excellent and business income is very stable. Especially, after trading with its holding company, Jinjiang Investment has entered auto services and logistic industry. The profitability of the company has been largely improved, and the business structure of the company is sounder and quite risk-resistant. I would also like to suggest a target price of RMB 18-19 Yuan for middle-term investment.
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