China's logistics costs are high and efficiency improvements are large. In 2020, the scale of intelligent logistics system reached 100 billion yuan. In 2014, China's total logistics cost accounted for about 16.6% of GDP in that year, twice that of developed countries such as the United States and Japan. There is a large space for efficiency improvement. Intelligent logistics equipment has a long-term objective demand basis.
In 2014, China's intelligent logistics system is about 42.5 billion yuan (including automated three-dimensional warehouse, trolley and AGV, automated sorting and transportation system, etc.). It is estimated that by 2020, it will exceed 80 billion yuan, and CAGR will be about 15%.
Industry driving force: downstream capital expenditure drives the development of the industry. The listing of express companies continues to catalyze China's express business to reach 120 billion units in 2015, and CAGR has exceeded 50% in the past five years.
The labor cost of express industry accounts for more than 40%, the competition in the industry is increasingly fierce, and the profit margin is suppressed.
Express logistics automation is a breakthrough to reduce costs and increase efficiency. Since the end of 2015, express companies have intensively landed in the capital market. Capital expenditure will rise dramatically, driving the demand for intelligent logistics equipment to rise.
Industry pattern: Foreign capital occupies the majority of the market share. There is a certain gap between domestic companies. About two-thirds of the domestic market share is occupied by foreign capital. Domestic enterprises have a weak voice. The system integration giants represented by Dafu, San Fe and Dema Taco occupy the dominant position in the global market. Domestic companies started late, there are still some gaps.
International experience: transformation from equipment manufacturers to integrated contractors is the only way to make bigger enterprises. Combined with industrial value, growth and international experience, we believe that from the perspective of industrial chain, we should be optimistic about core equipment, especially automated stereoscopic warehouse. From the perspective of business mode, we will be optimistic about enterprises with integrated design and implementation capabilities.