Sinolink Securities: Tielong Logistics' current valuation is at a relatively low level, initiating coverage with a "buy" rating.

Sinodata Securities research report pointed out that Tielong Logistics is the leader in national iron special box transportation and is expected to enter a new growth cycle. The company's main business areas include railway special container business, railway freight and port logistics business, and supply chain management, with high asset barriers and operational barriers. In 2024, the gross profit contribution of the company's first two businesses accounted for 67.38% and 23.20% respectively, contributing mainly to performance. Considering the rhythm of the company's new box manufacturing cycle and the expected steady improvement in the turnover level of special boxes, in addition, we analyze the potential for operational improvement in railway freight and port logistics business, and it is expected that the company's net profit attributable to the parent company will be 585 million, 690 million, and 805 million yuan in 2025-2027, with year-on-year increases of +53.2%, +17.9%, and +16.7%, respectively. It is believed that the company's performance growth and operational stability may gradually improve, with an average PE ratio of approximately 19 times in the past five years, the current valuation is at a low level, first coverage, and a "buy" rating is given.