Zhuanhua Technology: "Logistics + Chemicals" Dual-Wheel Drive, Integration of Industry and Finance Opens New Growth Space

Recently, Pacific Securities initiated coverage of China TransInfo Technology (002010.SZ) for the first time and assigned an “Overweight” rating to the company.

Data shows that by 2025, China TransInfo is expected to achieve net profits of 540 million to 700 million yuan, representing a year-on-year growth of 256.07% to 361.57%.

Regarding the significant performance growth, Pacific Securities believes there are three reasons: improved traditional business performance; the company recognizing investment income from transferring equity; and the repurchase of minority shares in Zhejiang TransInfo Synthetic Materials to increase ownership. They also expressed confidence in the company’s dual-core development pattern, where, alongside the continuous deepening of logistics supply chain, a restructuring of the chemical manufacturing sector is underway, which will generate synergistic effects.

Deepening in Intelligent Logistics

China TransInfo’s predecessor was TransInfo Co., Ltd., a company that had already made strides in textile chemicals in the 1990s. In 2003, TransInfo pioneered the “Highway Port” logistics model, and in 2004, it was listed on the Shenzhen Stock Exchange. In 2015, TransInfo Logistics merged with TransInfo Co., Ltd. and was rebranded as China TransInfo Technology, establishing a dual-driven pattern of “Smart Logistics + New Chemical Materials.”

Currently, logistics and chemical businesses account for 54.51% and 45.49% of revenue, respectively. As the main revenue source, the smart logistics business is the core platform empowering manufacturing supply chain upgrades.

Over more than a decade of development, the company has built the largest and most extensive network of smart highway ports in the country, becoming a key hub connecting production and consumption. To date, there are 72 smart highway ports nationwide, covering 27 provinces and cities, with a total operating area of over 6 million square meters, hosting 8,674 enterprises. The port occupancy rate remains stable at 86.4%, with an average daily traffic of 170,000 vehicles, forming a nationwide logistics network.

Unlike traditional logistics parks, China TransInfo’s smart highway ports are not just storage and distribution centers but integrated logistics hubs combining warehousing, distribution, vehicle-freight matching, after-sales services, and financial services. Through digital technology, they streamline supply chain links to achieve cost reduction, efficiency increase, and quality improvement. Relying on the self-developed “TransInfo XiaoZhi” platform, the company has realized full-chain digital control of logistics, reducing truck empty runs to 18% through AI dispatching, significantly below industry averages.

In digital transportation, TransInfo’s network freight business integrates nationwide full-truck and less-than-truckload resources, providing end-to-end digital shipping services for manufacturing enterprises. Especially in hazardous chemicals transportation, with a comprehensive compliance system and digital control capabilities, approval efficiency has increased by 60% compared to industry averages, creating a strong compliance barrier. Additionally, leveraging highway port warehouse resources, the company has developed an intelligent cloud warehouse system offering integrated warehousing, transportation, and financial supply chain solutions, serving large manufacturing and distribution companies, further strengthening core logistics competitiveness.

Chemical New Materials as Profit Pillars

As mentioned earlier, the company began engaging in chemical business in the 1990s, and now chemical new materials have become another key profit driver.

In functional chemicals, the company’s textile dyeing and finishing auxiliaries hold the top domestic market share and rank second globally, leading the formulation of multiple national and industry standards. In the first half of 2025, revenue from these products increased by 3.35% year-on-year, accounting for 29.26% of total chemical revenue. The company’s self-developed “High-Performance Wide-Applicability Polyester Long-Chain Oil” was recognized as one of Zhejiang’s first new materials in 2025 and became the industry’s first product to pass SGS GREEN MARK bio-based certification, successfully replacing imported high-end oils, and has been mass-applied in several leading fiber companies.

In the field of chemical new materials, China TransInfo focuses on rare-earth SBR (styrene-butadiene rubber). After seven years of technical research, it built the country’s first flexible rare-earth SBR production facility, breaking the long-standing overseas monopoly. Currently, the company’s rare-earth SBR capacity reaches 270,000 tons, making it the world’s largest single plant, with over 70% domestic market share. Its products are exported to more than 30 countries and regions, covering 24 of the top 25 global tire companies, used in new energy tires and high-end rubber products, with costs 25% lower than imported equivalents, demonstrating strong market competitiveness. In the first half of 2025, revenue from SBR increased by 68.37% year-on-year, becoming a core growth driver in the chemical sector.

The core reason for the continuous strengthening of the core competitiveness of these two main businesses lies in technological innovation. Data shows that in the first three quarters of 2025, R&D expenses reached 348 million yuan. The logistics sector focuses on precise breakthroughs in digitalization, artificial intelligence, and the Internet of Things across six major technological fields; the chemical sector has established R&D centers at both Zhejiang Province and Hangzhou City levels, forming a multi-layered, comprehensive R&D framework to support technological innovation in both core businesses.

Integration of Industry, Finance, and Technology Accelerates Development

The dual-core development is a key advantage that sets TransInfo apart from its peers. The smart logistics and chemical new materials businesses are not isolated but form a virtuous cycle: the chemical business’s nationwide production and sales network provide stable supply sources for logistics, reducing operational costs; meanwhile, the nationwide logistics network offers efficient and convenient transportation and warehousing solutions for chemical products, enhancing market responsiveness and creating synergy.

The integration of industry, finance, and technology injects new momentum into the company’s growth. It is known that China TransInfo holds a 5.01% stake in Ant Financial, which not only provides stable investment income (463.3 million yuan in the first half of 2024) but also leverages Ant Financial’s technology and resources to improve supply chain financial services, offering precise financing solutions for small and medium-sized logistics and chemical enterprises within the ecosystem.

According to the China Federation of Logistics & Purchasing’s Logistics Finance Committee, the financing needs of Chinese logistics companies exceed 3 trillion yuan annually, but less than 10% are met by traditional financial institutions. Among these, only about 5% of the approximately 600 billion yuan annual freight forwarding financing demand is satisfied.

TransInfo can utilize Ant Chain’s “Accounts Receivable Supply Chain Finance Platform,” “Blockchain Financing Leasing Business,” and “Moses Privacy Computing Platform” to achieve one-stop multi-party supply chain financial services. Data testing, modeling, and risk control processes can be completed within a week, greatly reducing decision-making time and further strengthening ecosystem stickiness.

Additionally, the company is advancing scenario-based applications in emerging fields such as embodied intelligence and autonomous driving, aiming to seize new productivity development opportunities. It can be said that China TransInfo always adheres to the real economy, deepens its dual-core strategy, and focuses on innovation, not only achieving its own growth but also empowering upstream and downstream enterprises to upgrade manufacturing supply chains.