Cosco Shipping International (hong Kong) Co., Ltd. · HKEX:517
Cosco Shipping International (hong Kong) — FY2021 Earnings Presentation
24 slides from Cosco Shipping International (hong Kong)'s earnings presentation, Mar 25, 2022
Slide 1: Annual Results Mar 2022
ete tae Bilis 78) RAF) Annual Results Mar 2022
Slide 2: FY2021 Annual Results
FY2021 Annual Results
Slide 3: Operating profit surged on robust demand for shipping services
Operating profit surged on robust demand for shipping services Revenue Gross Profit Operating Profit HK$’ m HK$’ m HK$’ m 277.5 4,533.5 769.4 2% 628.5 2% 3,422.9 +3 +2 % 109 + 132.5 FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 3
Slide 4: Full distribution with 101% Payout Ratio
Full distribution with 101% Payout Ratio Underlining our Commitment to Shareholders’ Return EPS: EPS: 22.08cents 18.81 cents EPS: -15% DPS: 22.0 cents DPS: 19.0 cents Payout: DPS: -14% 99.6% Payout: 101% FY2020 FY2021 4
Slide 5: FY2021 income statement summary
(HK$’ m) FY2020 FY2021 YoY Revenue 3,442.9 4,533.5 +32% Gross profit 628.5 769.4 +22% Other income and gains/(losses) – net 11.9 35.2 +196% Selling, Admin & General expenses (625.3) (604.9) -3% Operating profit 132.5 277.5 +109% Finance income – net 132.7 40.8 -69% Share of profit/(losses) from JVs
Slide 6: Half-year income statement summary
(HK$’ m) 1H2020 2H2020 1H2021 2H2021 Revenue 1,482.8 1,960.1 2,231.2 2,302.3 Gross profit 266.3 362.2 366.3 403.1 Other income and (22.1) 34.0 10.6 24.6 gains/(losses) – net Selling, Admin & General (242.8) (382.5) (275.1) (329.8) expenses Operating profit 37.6 94.9 137.7 139.8 Finance income – net
Slide 7: Balance sheet and per share data
(HK$’ m) As of 31 Dec 2019 As of 31 Dec 2020 As of 31 Dec 2021 Total Assets 9,376.9 9,938.7 9,742.2 Total Liabilities 1,158.7 1,511.0 1,347.6 Shareholders’ equity 7,926.4 8,113.0 8,061.0 Cash on Hand 6,319.7 6,518.6 6,219.7 Debt to Equity 0.8% 1.1% 0.5% Current Ratio 7.5x 6.0x 6.5x Quick Ratio 7.2x
Slide 8: Segment Review
Segment Review
Slide 9: Segment profit before tax FY2020 vs FY2021
(HK$’ m) FY2020 FY2021 YoY Shipping Services 363.3 293.7 -19% - Ship Trading Agency 73.7 69.7 -5% - Insurance Brokerage 64.9 69.4 +7% - Marine Equipment 74.1 106.2 +43% - Coatings 123.1 95.1 -23% - Marine Fuel Trading 27.5 (46.7) Turnaround loss (HK$’ m) FY2020 FY2021 YoY General Trading 10.3 18.4 +
Slide 10: Ship Trading Agency PBT
PBT FY20 FY21 No. of mn No. of mn HK$ m vessel DWT vessel DWT 73.7 69.7 Newbuild delivery 35 2.8 26 5.0 -5% Newbuild contracts 19 1.3 16 1.6 Secondhand vessels 29 0.4 15 0.8 Orderbook on hand* 45 5.9 33 2.5 1. Revenue up 14% YoY to HK$104m 2. Revenue contribution from COSCO SHIPPING FY2020 FY2021 of
Slide 11: Insurance Brokerage PBT
PBT HK$ m 1. Revenue up 11% to $102m 69.4 64.9 2. Improved shipping market drives demand for +7% marine insurance 3. Higher ship prices drove premium up 4. Revenue contribution from COSCO SHIPPING of 66% in FY21 vs 73% in FY20 FY2020 FY2021 11
Slide 12: Marine Equipment PBT
PBT HK$ m 106.2 1. Revenue up 20% to HK$1,579m 2. OPM at 6.7% in FY21 vs 5.6% in FY20 3% 74.1 3. Revenue contribution from COSCO +4 SHIPPING of 81% in FY21 vs 76% in FY20 FY2020 FY2021 12
Slide 13: Coatings segment results
OP of COSCO Kansai Profit of Jotun COSCO Profit of Nasurfar HK$ m HK$ m HK$ m 13.9 33.7 99.5 6.7 8% 17.0 8% 0 -52 47.5 +9 +1 % FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 1. All sales volume +28% YoY 1. Gross margin declined on 1. Phrase 2 Factory is currently in 2. OPM of 2.1% in FY21 vs 1.5% in surg
Slide 14: Marine Fuel Trading PBT
PBT HK$ m HK$ million FY20 FY21 27.5 PBT of Sinfeng (1.8) (0.8) Share of profit from 29.3 (45.9) Double Rich FY2020 FY2021 T ur n ar o loss und 1. Sinfeng’s business purposely trimmed down 2. Double Rich adopted a very competitive pricing strategy to gain the market share amid -46.7 increasing stora
Slide 15: General Trading PBT
PBT HK$ m 18.4 (tonnes) FY20 FY21 YoY 0% Asphalt sale 222,618 256,251 15% +8 volume 10.3 1. Revenue up 35% YoY as volume and ASP increased 2. Segment OPM at 1.8% in FY21 vs 1.6% in FY20 3. Subscribed 48% equity interest of Zhejiang Four Brothers Rope, providing a new source of profit FY2020 FY2021 1
Slide 16: Market Review
Market Review
Slide 17: Newbuilding Delivery and Contracting
Newbuilding Delivery Newbuilding Contracting Global China Global China m DWT m DWT 99.7 119.8 88 85.8 81 91.4 94.9 72.6 76 67.6 67.1 38.9 37.7 38.5 39.7 35.5 30.1 41.7 34.4 29.1 28.9 14.1 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 Source: Clarksons 17
Slide 18: Global Order Book
Global Order Book ‘m DWT Global China 231 226 219 206 197 160 100.8 100 96.4 95.8 87 71.1 2016 2017 2018 2019 2020 2021 Source: Clarksons 18
Slide 19: Newbuilding Prices
Newbuilding Prices Clarkson Newbuilding Price Index Clarkson Newbuilding Price Index 154 133 138 131 123 130 130 125.6 126 125 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: Clarksons 19
Slide 20: 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 Total Output ASP 6,283 3,786 3,704 2,791 2,365 2,256 2,086 1,763 2018 2019 2020 2021 Source: Company Statistical Data 20
Slide 21: Appendix: Corporate Profile
Appendix: Corporate Profile
Slide 22: Corporate structure and business overview
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 23: 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 24: 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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