Cosco Shipping International (hong Kong) Co., Ltd. · HKEX:517
Cosco Shipping International (hong Kong) — FY2022 Earnings Presentation
29 slides from Cosco Shipping International (hong Kong)'s earnings presentation, Mar 28, 2023
Slide 1: Green and Smart Shipping Leads the Future
綠色領航，智能引航 Green and Smart Shipping Leads the Future
Slide 2: 2022 Review & Key Highlights
2022 Review & Key Highlights Market Review and Segmental Performance Financial Performance Outlook 2
Slide 3: 2H2022 profit surged by 41.0% YoY, FY2022 profit increased by 20%
2H2022 profit surged by 41.0% YoY, FY2022 profit increased by 20% Strong profit growth was resulting from increase in share of profits of joint ventures and finance income as well as prudent cost control 2H22 Profit attributable to Shareholders FY22 Profit attributable to Shareholders HK$’ m HK$
Slide 4: Earnings per share increased by 21% YoY to HK$22.74 cents
Earnings per share increased by 21% YoY to HK$22.74 cents Proposed final dividend per share of HK$11.50 cents FY2022 dividend per share increased by 18 % YoY to HK$22.50 cents，payout ratio at 99.0% Earnings per Share Dividend per Share HK$’ cents HK$’ cents 22.74 22.50 18.81 19.0 10.80 11.00 1
Slide 5: Share repurchases and total shareholder return in FY2022
Repurchased shares from open market, no. of shares repurchased and canceled of 51,262,000 shares Total return for shareholders in FY2022 was approximately HK$458m [HK$340m (Dividends) + HK$118m (Buybacks)] Payout ratio Buybacks Cash spent on repurchases 101.0% Shares repurchased in 2022 99.6% 99
Slide 6: Market Review and Segmental Performance
2022 Review & Key Highlights Market Review and Segmental Performance Financial Performance Outlook 6
Slide 7: Clarkson Newbuilding Price Index, Delivery and Global Order Book
Clarkson Newbuilding Price Index 154 162 133 138 131 123 125 130 130 126 125.6 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Newbuilding Delivery Newbuilding Contracting Global Order Book mDWT mDWT mDWT Global China Global China Global China 119.8 226 206 223 99.7 88 85.8 94.9 197 81 75 76
Slide 8: Output and Average Selling Price of Newbuild Containers in China
Output and Average Selling Price of Newbuild Containers in China ‘000 TEU Total Output ASP USD per TEU 6,283 3,786 3,704 3,185 2,791 2,365 2,650 2,086 2,256 1,763 2018 2019 2020 2021 2022 Source: Company Statistical Data 8
Slide 9: Ship trading: newbuild deliveries slowed, orders increased 150% YoY
Delivery of New build vessels slowed down, but orders increased by 150% YoY No. of traded 2nd-hand vessel increased by 53% in FY2022 FY2020 FY2021 FY2022 HK$’ 000 No. of new build 35 26 18 Segment revenue Segment PBT vessels delivery New build vessels 103,772 2,811,900 4,993,900 855,400 delivery
Slide 10: Insurance brokerage segment revenue and PBT rose
Revenue and PBT from insurance brokerage segment rose 12% and 17% respectively on strong growth in war insurance and P&I insurance While PBT achieved approximately 9% CAGR since FY2018, PBT Margin remained steady at an average of approximately 70% HK$’ 000 Revenue PBT PBT Margin 140,000 80.0% 72
Slide 11: Supply of marine equipment segment revenue rose 6% YoY
Revenue from supply of marine equipment segment rose 6% YoY to HK$1,670m and achieved approximately 9% CAGR since FY2018 PBT down 16% as a result of declined gross profit margin and fx-losses incurred HK$’ 000 Revenue PBT PBT Margin 1,800,000 1,669,821 8% 1,578,889 1,600,000 7% 1,400,000 1,262,0
Slide 12: Coatings revenue down 37% YoY
Revenue from coatings down 37% YoY to HK$1,067m as demand for new container coating has peaked in 2021 Operating margin improved by 1.2 percentage points to 3.3% as production cost declined Sales volume (tonnes) Segment performance Container coatings Revenue Operating profit OP Margin HK$’ 000 I
Slide 13: Share of profit from Jotun COSCO surged 125% YoY
Share of profit from Jotun COSCO surged 125% YoY to HK$107m Total sales volume of marine coatings increased by 26% to 91,981,000 litres Gross margin further improved as ASP rose and production cost reduced since 2H2022 Sales volume Share of profit FY2021 FY2022 HK$’ 000 106,720 New build vesse
Slide 14: Nasurfar 33% stake and share of profit
33% stakes in Nasurfar was acquired in May 2018 at a consideration of Rmb89,830,000 Nasurfar is principally engaged in the R&D, production and sales of eco-friendly biochemical products, which creates synergy to our coatings business Share of profit from Nasurfar declined 42% YoY to HK$8,036,0
Slide 15: Marine fuel and other products segment loss
During the year, loss before income tax from marine fuel and other products segment was HK$8,647,000 (2021: loss of HK$46,764,000), which mainly consisted of provision for impairment of assets held for sale of HK$8,275,000 (2021: nil). Trading and supply of marine fuel and related products busin
Slide 16: General trading PBT down 75% YoY
PBT from general trading business down 75% YoY to HK$4.58m as revenue declined and due to the increase in provision for impairment of trade and other receivables 48% stakes of Zhejiang Four Brothers Rope Co. was acquired in Apr 2021 at a consideration of RMB120m Share of profit from Zhejiang F
Slide 17: Financial Performance
2022 Review & Key Highlights Market Review and Segmental Performance Financial Performance Outlook 17
Slide 18: FY2022 profit growth driven by share of profits of JVs and associates
FY2022 strong profit growth was resulting from 452.9% YoY increase in share of profits of joint ventures and associates Selling, Admin & General expenses reduced by 17.8% on prudent cost control (HK$’ m) 2H2021 2H2022 YoY FY2021 FY2022 YoY Revenue 2,302.3 2,158.5 -6.2% 4,533.5 3,962.5 -12.6% Gro
Slide 19: Revenue by segment, 2H2022 and FY2022
2H2022 revenue down 6.2% YoY, FY2022 revenue down 12.6% YoY Decline in revenue mainly due to the decrease in revenues from coatingsnote1, ship trading agency and general trading segments HK$’ m 2H2022 Revenue by Segment FY2022 Revenue by Segment HK$’ m HK$’ m Ship Trading Insurance Brokerage Mar
Slide 20: Segmental PBT surged 58.7% in 2H2022
2H2022 Segmental PBT surged 58.7% YoY, while FY2022 Segmental PBT rose 19.1% YoY Strong growth in segmental PBT was mainly driven by robust performance in coatings business and sustained growth in 2H2022 Segment PBT FY2022 Segment PBT HK$’ m HK$’ m Ship Trading Insurance Brokerage Marine Equipme
Slide 21: Shipping services segment profit after tax surged 33.9%
Profit after tax from shipping services segment surged 33.9% YoY to HK$316m ROA of shipping services segment increased by 2.6ppts to 8.7% through business optimization HK$’ m 4500 10.0% 4000 3,742.3 8.7% 9.0% 3,488.5 3500 8.0% 3000 7.0% 6.1% 6.0% 2500 5.0% 2000 4.0% 1500 3.0% 1000 2.0% 500 236.0
Slide 22: Interest income surged by 105% to HK$98.36m
Interest income surged by 105% to HK$98.36m as rate of cash return increased by 86 basis points to 1.62% HK$’ m 250 3.50% 3.00% 200 2.50% 150 2.00% 1.62% 100 1.50% 0.75% 98.4 1.00% 50 48.0 0.50% 0 0.00% FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Interest Income on deposi
Slide 23: Strong position with cash on hand of HK$5,933m
As of 31 Dec 2022, our position remained strong and amounted HK$5,933m Debt ratio reduced to 0% as an amount of HK$42.8m short-term borrowing is repaid Latest NAV per share further increase as repurchased shares was cancelled (HK$’ m) As of 31 Dec 2021 As of 31 Dec 2022 Total Assets 9,742.22 9
Slide 24: Outlook
2022 Review & Key Highlights Market Review and Segmental Performance Financial Performance Outlook 24
Slide 25: Outlook: COSCO SHIPPING Group backing and growth potential
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 26: Carbon intensity and digital technologies
Advanced Internet of Autonomous Blockchain Cyber- E-platforms AI Analytics Things Vessels and Security Robotics Online Network Vessel E-service Automated E-bill of Security booking optimization machinery centers vessel lading assurance for Online cargo Lead monitoring Dynamic navigation Payment cust
Slide 27: Carbon intensity
2022 2023 2024 2025 Carbon intensity Source: Alphaliner 27
Slide 28: COSCO SHIPPING Green Digital Intelligence Ship Services
COSCO SHIPPING International COSCO SHIPPING Technology (00517.HK) 51% 49% COSCO SHIPPING Green Digital Intelligence Ship Services Co., Ltd Provide comprehensive operational solutions for ships such as energy saving and emission reduction, navigation safety, spare parts/energy supply and ship operati
Slide 29: 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) — FY2022 Earnings Presentation on 6ix