Cosco Shipping International (hong Kong) Co., Ltd. · HKEX:517
Cosco Shipping International (hong Kong) — H1 2022 Earnings Presentation
23 slides from Cosco Shipping International (hong Kong)'s earnings presentation, Aug 18, 2022
Slide 1: 2022 Interim Results
Césco PASM SS) SRA SHIPPING & Ss COSCO SHIPPING INTERNATIONAL (HONG KONG) CO., LTD. 2022 Interim Results Aug 2022 WE-COMPLEMENT FHE-MARITIME TRANSPORT-FOR BRIGHTER FUTURE Fae A BE 45 ARRAY HA
Slide 2: 1H2022 Results
1H2022 Results
Slide 3: Profit margins improved on effective cost control
Profit margins improved on effective cost control Shareholders’ Profit PBT of Core Business Net Profit Margin HK$’ 000 HK$’ 000 165,587 177,792 9.5% 159,592 +2ppt +4% -12% 7.5% 157,209 1H2021 1H2022 1H2021 1H2022 1H2021 1H2022 3
Slide 4: EPS: +4% DPS: +10%
Payout Ratio increase to 102% Underlining our Commitment to Shareholders’ Return HK Cents 11.00 EPS 10.80 DPS EPS: +4% 10.41 DPS: +10% 10.00 1H2021 1H2022 4
Slide 5: Income statement summary
(HK$’ m) 2H2020 1H2021 2H2021 1H2022 YoY Revenue 1,960.1 2,231.2 2,302.30 1,803.9 -19% Gross profit 362.2 366.3 403.1 316.4 -14% Other income and gains– 34.0 10.6 24.5 31.7 198% net Selling, Admin & General (382.5) (275.1) (329.8) (256.7) -7% expenses Operating profit 94.9 137.7 139.8 126.5 -8% Fina
Slide 6: Balance sheet and per share data
(HK$’ m) As of 30 Jun 2021 As of 31 Dec 2021 As of 30 Jun 2022 Total Assets 9,915.2 9,742.2 9,582.1 Total Liabilities 1,529.9 1,347.6 1,261.2 Shareholders’ equity 8,059.0 8,061.0 7,996.7 Cash on Hand 5,971.5 6,219.7 6,041.2 Debt to Equity 1.6% 0.5% - Current Ratio 5.9x 6.5x 6.9x Quick Ratio 5.6x 6.2
Slide 7: Segment Review
Segment Review
Slide 8: Segment profit before tax summary
(HK$’ m) 2H2020 1H2021 2H2021 1H2022 YoY Shipping Services 226.7 177.8 115.9 157.2 -12% - Ship Trading Agency 53.1 33.6 36.1 21.6 -36% - Insurance Brokerage 34.6 36.5 32.9 41.9 15% - Marine Equipment 32.2 56.6 49.6 52.2 -8% - Coatings 86.8 51.2 44.0 49.9 -2% - Marine Fuel Trading 20.0 (0.1) (46.7) (
Slide 9: Ship Trading PBT
PBT 1H2021 1H2022 Orders through COSCO SHIPPING HK$ m No. of mn No. of mn Ship Trading vessel DWT vessel DWT 33.6 Newbuild delivery 18 3.6 7 0.5 Newbuild contracts 3 0.1 21 1.1 -36% 21.6 Secondhand vessels 7 0.3 14 0.5 1. Revenue down 29% YoY to HK$34.1m 2. PBT margin at 63.4% in 1H2022 vs 69.9% in
Slide 10: Insurance Brokerage PBT
PBT HK$ m 41.9 36.5 +15% 1. Revenue up 11% YoY to $56.5m 2. Expansion of business varieties 3. Overall commission rate remain stable at high single digit 4. PBT Margin at 74.1% in 1H2022 vs 71.6% in 1H2021 1H2021 1H2022 10
Slide 11: Marine Equipment PBT
PBT HK$ m 56.6 -8% 52.2 1. Revenue up 11% YoY to HK$898m 2. PBT Margin at 5.8% in 1H2022 vs 7.0% in 1H2021 3. PBT declined on increasing net exchange losses 1H2021 1H2022 11
Slide 12: Coatings: COSCO Kansai, Jotun COSCO, Nasurfar
OP of COSCO Kansai Profit of Jotun COSCO Profit of Nasurfar HK$ m HK$ m HK$ m 40.3 8 16.2 6.6 -79% +40% 6 -13% 5.8 28.8 4 3.4 2 0 1H2021 1H2022 1H2021 1H2022 1H2021 1H2022 1. Revenue declined 32% on 1. GPM stable with effective 1. Revenue increased by 19%, tightened demand cost control and strong bu
Slide 13: Double Rich and Sinfeng
Double Rich COSCO SHIPPING Intl (HK) owned 18% equity interest in Double Rich. On 28 June 2022, we agreed to sell our equity interest in Double Rich for a consideration of US$8,804,200 (equivalent to approximately HK$69,078,000). During 1H 2022, an impairment loss of HK$8,275,000 was recorded. Sinfe
Slide 14: General Trading PBT
PBT HK$ m 12.9 (tonnes) 1H2021 1H2022 YoY Asphalt sale 138,646 60,175 -56% volume +75% 1. Revenue declined on weakened demand, but 7.4 ASP increased sharply 2. Share of profits of HK$1.2m (1H2021: HK$1.5m) from Zhejiang Four Brothers Rope, which the Company acquired 48% stake in Mar 2021 1H2021 1H20
Slide 15: Market Review
Market Review
Slide 16: Newbuilding Delivery and Contracting
Newbuilding Delivery Newbuilding Contracting Global China Global China m DWT m DWT 99.7 119.8 88 85.8 81 94.9 76 67.6 39.7 40.9 67.1 35.5 37.7 38.5 41.7 18.5 34.4 28.9 29.1 22.4 2018 2019 2020 2021 2022-Jun 2018 2019 2020 2021 2022-Jun Source: Clarksons 16
Slide 17: Global Order Book
Global Order Book ‘m DWT Global China 226 219 216 206 197 160 100 96.4 103 95.8 87 71.1 2017 2018 2019 2020 2021 2022 Source: Clarksons 17
Slide 18: Newbuilding Prices
Newbuilding Prices Clarkson Newbuilding Price Index Clarkson Newbuilding Price Index 161 154 133 138 131 123 130 130 125.6 126 125 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022-Jun Source: Clarksons 18
Slide 19: Output and ASP of Newbuild Containers in China
Output and Average Selling Price of Newbuild Containers in China ‘000 TEU USD per TEU Total Output ASP 6,283 3,786 3,704 2,791 3,008 2,365 1,787 2,256 2,086 1,763 2018 2019 2020 2021 2022-Jun Source: Company Statistical Data 19
Slide 20: Appendix: Corporate Profile
Appendix: Corporate Profile
Slide 21: COSCO SHIPPING International corporate profile and 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 relocated its to build a new plant in plant in Shanghai Shanghai Acquired Acquired COSCO HK Yuantong signed 100% equity Entering into Acquired COSCO Insurance Brokers Divested the Jotun A
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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