Cosco Shipping International (hong Kong) Co., Ltd. · HKEX:517
Cosco Shipping International (hong Kong) — H1 2023 Earnings Presentation
25 slides from Cosco Shipping International (hong Kong)'s earnings presentation, Aug 22, 2023
Slide 1: Interim Results 2023
7 ves cosco FRB ER Pe (S48) BIR A] SHIPPING oSCO SHIPPING INTERNATIONAL (HONG KONG) CO., LTD. WAZ Ae AAS BE SIA Interim Results 2023
Slide 2: 1H2023 Review & Key Highlights
1H2023 Review & Key Highlights Financial Performance Market Review and Segmental Performance Latest Development and Outlook 2
Slide 3: 1H2023 profit doubled to HK$335,917,000
1H2023 profit doubled to HK$335,917,000 Mainly contributed by strong growth in Net finance income and Share of profits of JVs Net finance income jumped by 462%, while Share of profits of JVs increased by 132% 1H2023 Profit attributable to Shareholders Major Growth Contributions HK$’ 000 HK$’ 0
Slide 4: Earnings and dividend per share increased
Earnings per share increased by 110% YoY to 22.69 HK cents Proposed interim dividend per share of HK$22.50 cents, surged 105% YoY Payout ratio at 99.0% Earnings per Share Dividend per Share HK cents HK cents 22.69 22.50 +110% +105% YoY YoY 10.80 11.0 1H2022 1H2023 1H2022 1H2023 4
Slide 5: Payout ratio and share buybacks
In 1H2023, COSCO SHIPPING International continued to repurchased 15,722,000 shares from open market Total repurchased shares amounted 66,984,000 shares since FY2022 Payout ratio Buybacks Shares repurchased 99.6% 101.0% 99.0% 99.0% FY2022 1H2023 51,262,000 15,722,000 Cash spent on repurchases FY2
Slide 6: Financial Performance
1H2023 Review & Key Highlights Financial Performance Market Review and Segmental Performance Latest Development and Outlook 6
Slide 7: Revenue declined 10% YoY on weaker coatings demand
Revenue declined 10% YoY as a result of weakened demand for container coatings and asphalt Gross profit increased by 8%, GPM improved from 17.5% in 1H2022 to 21.2% in 1H2023 OPM improved from 7.0% in 1H2022 to 9.0% in 1H2023, NPM improved from 9.2% in 1H2022 to 20.7% in 1H2023 (HK$’ 000) 1H202
Slide 8: Cash position remained strong at HK$6,074,373,000
As of 30 Jun 2023, our cash position remained strong and amounted HK$6,074,373,000 Latest NAV per share further increased to $5.37, while net cash per share at HK$4.14 (HK$’ 000) As of 31 Dec 2022 As of 30 Jun 2023 Total Assets 9,234,493 9,158,429 Total Liabilities 1,112,913 938,182 Shareholders
Slide 9: Interest income jumped 442% YoY
Interest income jumped 442% YoY to As of 30 As of 31 As of 30 HK$120,495,000 as return on cash surged HK$’ 000 Jun 2022 Dec 2022 Jun 2023 328bps to 4.01% Cash-on-Hand 6,041,209 5,933,120 6,074,373 Interest income Cash return rate RMB HKD USD Others HK$’ 000 HK$’ 000 140,000 120,495 4.50% 73,889 42
Slide 10: Market Review and Segmental Performance
1H2023 Review & Key Highlights Financial Performance Market Review and Segmental Performance Latest Development and Outlook 10
Slide 11: Clarkson Newbuilding Price Index
Clarkson Newbuilding Price Index Global newbuilds order amounted Bulkcarrier Gas Carrier 49.8m DWT in 1H2023, down 10.4% Oil Tanker Containership YoY. Shipyards’ capacity is mostly 250 occupied by orders that made in 2021- 205.92 2022. 200 190.14 150 164 China accounted for 60% of newbuilds orde
Slide 12: Output and Average Selling Price of Newbuild Containers in China
Output and Average Selling Price of Newbuild Containers in China ‘000 TEU USD per TEU 450.0 4,000 400.0 3,500 350.0 3,000 300.0 2,500 250.0 2,000 2,100 2,050 1,900 1,900 2,100 2,000 200.0 167.7 124.6 138.2 130.8 1,500 150.0 100.0 1,000 64.1 50.0 29.8 500 - - Jan Feb Mar Apr May Jun Total Output - 20
Slide 13: 1H2023 revenue down 10% YoY
1H2023 revenue down 10% YoY to HK$907,067,000 HK$428,884,000 HK$1,620,612,000 +1% YoY -19% YoY Mainly due to the decrease in revenues from coatingsnote1 and general trading segments Revenue from Insurance Brokerage surged 36% YoY to HK$76,870,000, as a result of gradual expansion of business e
Slide 14: 1H2023 PBT surged 91% YoY
1H2023 PBT was HK$379,884,000, HK$125,118,000 HK$57,861,000 HK$56,572,000 +151% YoY +38% YoY +8% YoY surged 91% YoY, while segmental PBT was HK$272,576,000, up 58% YoY Mainly contributed by strong performance in coatings segment, in particular vessel coatings. PBT from coatings segment surged 15
Slide 15: Delivery of newbuild vessels slowed, orders sped up
Delivery of New build vessels slowed down, but orders further speeded up New build vessels order increased by 108% YoY to 2,215,650 DWT 2nd-hand vessel traded increased by 77% YoY to 931,655 DWT 1H2022 2H2022 1H2023 Segment revenue Segment PBT HK$’ 000 No. of new build 36,370 7 18 4 34,072 ves
Slide 16: Insurance brokerage segment
Segment revenue Segment PBT HK$’ 000 Revenue and PBT from insurance brokerage 76,870 segment rose 36% and 38% respectively, as a result of gradual expansion of business expansion, higher premium in P&I and war risk 56,453 57,861 insurances 41,852 PBT margin further improved from 74.1% in 1H2022
Slide 17: Supply of marine equipment segment
Segment revenue Segment PBT HK$’ 000 Revenue from supply of marine equipment segment rose 1% YoY to HK$907,067,000 897,724 907,067 PBT up 8% YoY to HK$56,572,000 as a result of increase of interest income and decline in fx- losses PBT margin improved from 5.8% in 1H2022 to 6.2% in 1H2023 52,20
Slide 18: Coatings segment revenue down 19% YoY
Revenue from coatings down 19% YoY to HK$428,884,000 amid weak demand for new container coating Operating profit jumped 373% YoY to HK$15,986,000 as production cost declined, OPM improved by 3.1ppts to 3.7% Sales volume (tonnes) Segment performance Container coatings Revenue Industrial heavy-dut
Slide 19: Share of profit from Jotun COSCO
Share of profit from Jotun COSCO surged 169% YoY to HK$108,560,000 Total sales volume of marine coatings increased by 35% to 52,543,000 litres Gross margin further improved on lower production cost and higher ASP as market demand strengthened Sales volume Share of profit 1H2022 1H2023 HK$’ 000
Slide 20: Share of profit from Nasurfar
COSCO SHIPPING International owns 33% stakes Share of profit in Nasurfar HK$’ 000 5,785 Sales declined on weak container coating demand -99.9% Lower ASP and GPM as increasing competition YoY Phrase II factory began to incur depreciation cost 6 1H2022 1H2023 20
Slide 21: General trading business
Revenue declined by 40% as asphalt sales volume down 45% YoY PBT from general trading down 74% YoY to HK$3,358,000 Share of profit from Zhejiang Four Brothers increased by 9% YoY to HK$1,292,000 Performance of general trading business Share of profit from Zhejiang Four Brothers HK$’ 000 HK$’ 0
Slide 22: Latest Development and Outlook
1H2023 Review & Key Highlights Financial Performance Market Review and Segmental Performance Latest Development and Outlook 22
Slide 23: Smart Sailing Platform and Green Low-Carbon Solutions
Smart Sailing Platform Green and Low- Ship Carbon Intelligent Anti- Crew Behavior Carbon Intelligent Intensity Indicator Collision Solution Recognition Solution Operation Solution CII Digital Toolbox Carbon intensity 23
Slide 24: Having COSCO SHIPPING Group as our hinterland
Having COSCO SHIPPING Group as our hinterland with world-class reputation and business supports Well diversified shipping services business portfolio Strong business resilient to withstand macro challenges Sturdy cashflow and track record dividend payout Extraordinary growth potential with Green and
Slide 25: Disclaimer
Disclaimer ⚫ This presentation contains certain forward-looking statements with respect to the financial position, results of operations and business of COSCO SHIPPING International and certain plans and prospects of the management of COSCO SHIPPING International. ⚫ Such forward-looking statements i
COSCO SHIPPING International (Hong Kong) — H1 2023 Earnings Presentation on 6ix