Cosco Shipping International (hong Kong) Co., Ltd. · HKEX:517
Cosco Shipping International (hong Kong) — H1 2021 Earnings Presentation
23 slides from Cosco Shipping International (hong Kong)'s earnings presentation, Aug 18, 2021
Slide 1: 1H2021 Results - COSCO SHIPPING International (Hong Kong)
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Slide 2: 1H2021 Results
1H2021 Results
Slide 3: Payout Ratio increase to 96%
Payout Ratio increase to 96% Underlining our Commitment to Shareholders’ Return EPS: EPS: 10.41 cents 8.59 cents EPS: +21% DPS: 10.0 cents DPS: 6.50 cents Payout: 96% DPS: +54% Payout: 76% 1H2020 1H2021 4
Slide 4: ROE Doubled, indicating Strong Resilience of Core Businesses
ROE (after deducting cash-on-hand) Doubled, indicating Strong Resilience of Core Businesses Shareholders’ Profit PBT of Core Businesses ROE (after cash) HK$’ 000 HK$’ 000 159,592 177,792 7.0% 131,625 136,598 3.4% 1H2020 1H2021 1H2020 1H2021 1H2020 1H2021 3
Slide 5: Financial results (HK$ m)
(HK$’ m) 2H2019 1H2020 2H2020 1H2021 YoY Revenue 1,639.8 1,482.8 1,960.1 2,231.2 +50% Gross profit 281.0 266.3 362.2 366.3 +38% Other income and Turnaround (15.1) (22.1) 34.0 10.6 gains/(losses) – net profit Selling, Admin & General (313.6) (242.8) (382.5) (275.1) +13% expenses Operating profit 24.7
Slide 6: Balance sheet and per share data
(HK$’ m) As of 30 Jun 2020 As of 31 Dec 2020 As of 30 Jun 2021 Total Assets 9,644.2 9,938.7 9,915.2 Total Liabilities 1,489.7 1,511.0 1,529.9 Shareholders’ equity 7,865.4 8,113.0 8,059.0 Cash on Hand 6,195.5 6,518.6 5,971.5 Debt to Equity 1.0% 1.1% 1.6% Current Ratio 5.9x 6.0x 5.9x Quick Ratio 5.7x
Slide 7: Segment Review
Segment Review
Slide 8: Segment profit before tax summary
(HK$’ m) 2H2019 1H2020 2H2020 1H2021 YoY Shipping Services 164.9 136.6 226.7 177.8 +30% - Ship Trading Agency 23.8 20.6 53.1 33.6 +63% - Insurance Brokerage 35.3 30.3 34.6 36.5 +20% - Marine Equipment 31.0 41.8 32.2 56.6 +35% - Coatings 23.3 36.4 86.8 51.2 +41% Turnaround - Marine Fuel Trading 51.5
Slide 9: Ship Trading Agency PBT
PBT 1H2020 1H2021 Orders through COSCO SHIPPING HK$ m No. of mn No. of mn 33.6 Ship Trading vessel DWT vessel DWT Newbuild delivery 20 0.8 18 3.6 Newbuild contracts 12 0.6 3 0.1 20.6 Secondhand vessels 16 0.2 7 0.3 1. Revenue up 50% YoY to HK$48m 2. PBT margin at 69.9% in 1H2021 vs 64.1% in 1H2020 1
Slide 10: Insurance Brokerage PBT
PBT 36.5 HK$ m 1. Revenue up 19% YoY to $51m 30.3 2. Premium of protection, indemnity and non- marine insurances increased significantly 3. Overall commission rate remain stable 4. PBT Margin at 71.6% in 1H2021 vs 70.6% in 1H2020 5. Revenue contribution from COSCO SHIPPING of 75% in 1H2021 vs 70% in
Slide 11: Marine Equipment PBT
PBT 56.6 HK$ m 1. Revenue up 13% YoY to HK$806m 41.8 2. PBT Margin at 7.0% in 1H2021 vs 5.9% in 1H2020 3. Demand from new vessel surged 62% YoY 4. Revenue contribution from COSCO SHIPPING of 81% in 1H2021 vs 79% in 1H2020 1H2020 1H2021 13
Slide 12: Coatings: COSCO Kansai, Juton, Nasurfar PBT
PBT of COSCO Kansai Profit of COSCO Juton Profit of Nasurfar HK$ m 15.7 HK$ m HK$ m 32.6 6.6 28.8 1.6 2.2 1H2020 1H2021 1H2020 1H2021 1H2020 1H2021 1. Sales jumped but GPM squeezed on cost outpaced 1. GPM squeezed on cost 1. Expansion plan slightly ASP pressure, delayed, Phrase 2 passed test 2. Cont
Slide 13: Marine Fuel Trading PBT
PBT HK$ m 7.5 HK$ million 1H2020 1H2021 Operating Profit of (1.3) (0.3) Sinfeng Turnaround Share of profit from 8.8 0.1 loss Double Rich 1. Sinfeng’s business purposely suspended 2. Double Rich’s profit declined due to squeezed margins (0.1) 1H2020 1H2021 15
Slide 14: General Trading PBT
PBT HK$ m 7.4 (tonnes) 1H2020 1H2021 YoY Asphalt sale volume 65,801 138,646 +111% 1. Revenue surged 134% YoY as sales volume more than doubled as road construction demand increased in China 2.4 2. Share of profits of HK$1.5m from Zhejiang Four Brothers, which the Company acquired 48% stake in Mar 20
Slide 15: Market Review
Market Review
Slide 16: Global Order Book
Global Order Book ‘m DWT Global China 250 226 219 197 200 182.9 170.2 150 100 96.4 87 100 81 75.6 50 0 2017 2018 2019 2020 Jun-21 Source: Clarksons 18
Slide 17: Newbuilding Delivery and Contracting
Newbuilding Delivery Newbuilding Contracting 120 Global China Global China m DWT m DWT 99.7 100 94.9 100 91.4 88.8 90 85.9 81 76 80 80 70 62.8 64.2 60 60 50 41.7 40.4 37.7 37.7 40 34.4 40 35.5 31.6 27.2 28.2 30 20 20 10 0 0 2018 2019 2020 E2021 2017 2018 2019 2020 Jun-21 Source: Clarksons 19
Slide 18: Newbuilding Prices
Newbuilding Prices Clarkson Newbuilding price Index 139 136 134 130 128 127 127 127 127 126 126 125 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Source: Clarksons 20
Slide 19: China Newbuild Containers: Output and ASP
China Newbuild Containers: Output and ASP TEU USD per TEU 2020 2021 2020 2021 700,000 4500 4000 600,000 3500 500,000 3000 400,000 2500 300,000 2000 1500 200,000 1000 100,000 500 - 0 Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun Source: Company Statistical Data 21
Slide 20: Appendix: Corporate Profile
Appendix: Corporate Profile
Slide 21: Corporate profile and group structure
COSCO SHIPPING International (Hong Kong) is a HK-based shipping services provider, COSCO SHIPPING offering diversified and specialized shipping related services or products to customers such 100% as shipping companies, ship yards, container manufacturers, etc. COSCO SHIPPING (HK) Public shareholders
Slide 22: Strategic Transformation from a Conglomerate into a Shipping Services Provider
Strategic Transformation from a Conglomerate into a Shipping Services Provider COSCO Kansai COSCO Kansai started to relocated its plant in build a new plant in Shanghai Shanghai Entering into Yuantong signed a Acquired 100% Acquired COSCO HK equity interest in management Acquired COSCO Ship Insuranc
Slide 23: Forward-looking statements 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 involve know
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