Cosco Shipping International (hong Kong) Co., Ltd. · HKEX:517
Cosco Shipping International (hong Kong) — FY2018 Earnings Presentation
30 slides from Cosco Shipping International (hong Kong)'s earnings presentation, Mar 26, 2019
Slide 1: FY2018 Annual Results
cosco PH s#HR(S8)ARAA SHIPPING cosco SHIPPING INTERNATIONAL (HONG KONG) CO., LTD. WAZ FY2018 Annual Results ~ =<" 7 “— ; Mar 26, 2019
Slide 2: Results Snapshots
Results Snapshots
Slide 3: Profit attributable to shareholders; EPS / DPS / Payout ratio
Profit attributable to shareholders EPS / DPS / Payout ratio EPS DPS Payout 357 HK$ m HK cents 23.26 286 18 18.67 14 77% 75% FY2017 FY2018 FY2017 FY2018 3
Slide 4: Income statement summary FY2017 vs FY2018
(HK$’ mn) FY2017 FY2018 YoY Factors Marine fuel: +12% YoY on higher oil price and increased volume Revenue 8,786.1 9,521.6 +8.4% Coatings: +8% YoY on industrial heavy-duty anti corrosion coatings Gross profit 627.1 566.1 -9.7% Margins squeezed on coatings business as cost pressure Management
Slide 5: FY2018 PBT from Shipping Services
FY2018 PBT from Shipping Services: HK$216.2m, down 30.5% YoY Shipping Services PBT Contribution HK$ m FY2018 FY2017 5% Ship trading 91.3 (-19ppts) 95.2 -4% Marine insurance 31% 42% 58.2 -15% (+12ppts) 68.5 (+12ppts) Marine equipment 66.2 56.6 +17% Coatings 27% 11.0 (+5ppts) 74.9 -85% Marine fuel Shi
Slide 6: Unified Management Structure
Feb 2018: Entered into Management Services Master Agreement with COSCO SHIPPING (Hong Kong) The restructuring allows COSCO SHIPPING Intl. becoming 2nd-level subsidiary of the Group and receiving greater attention Multiple and redundant Unified management structures Management Structure Managemen
Slide 7: Subscription of 33% equity interest in Nasurfar
May 2018: Subscription of 33% equity interest in Nasurfar Biomaterial Technology (Changshu) Great potential of eco-friendly plant-type surfactants amid increasingly stringent regulatory requirements Share of profit of HK$2,022,000 from Nasurfar in FY2018 Sustainable Growth Technologies 7
Slide 8: Leading shipping services platform with COSCO support
Shipping services unified operation platform Ample internal resources Clear Strong support Leading vision from COSCO International SHIPPING Shipping Service Group company Non- financial business investment platform 8
Slide 9: Market Review
Market Review
Slide 10: Global Order Book
Global Order Book ‘m DWT Total Orderbook by China 322.6 232.9 217.9 207.8 134.6 99.7 97.4 89.9 2015 2016 2017 2018 Total: 208m DWT Total: 3118 Vessels Others 5% Others 11m DWT 20% Japan 633 units 21% China China 44m DWT 43% 47% 90m DWT Japan 1460units 18% 560 units S. Korea 30% S. Korea 62m DWT 15%
Slide 11: Clarksons Newbuilding Price Index, Delivery and Contracting
Clarksons Newbuilding Price Index 142 139 138 133 131 130 126 125 123 2010 2011 2012 2013 2014 2015 2016 2017 2018 Newbuilding Delivery Newbuilding Contracting Global delivery by Chinese yard Global contracting by Chinese yard m DWT m DWT 97 101 98 118 80 81 74 86 58 39 36 39 35 32 31 37 40 29 21 13
Slide 12: 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 3,786 3,060 3,152 2,428 2,409 2,451 US$2,396 1,799 US$2,086 US$2,238 US$2,128 US$2,096 US$1,657 US$1,457 2012 2013 2014 2015 2016 2017 2018 Source: Company Statistical Data 12
Slide 13: Segment Performance
Segment Performance
Slide 14: Ship Trading: Revenue Distribution, Operating Profit & Margin
Revenue Distribution Operating Profit & Margin Newbuilding 2nd-Hand & Others Operating Profit Operating Profit Margin HK’m HK’m 137 180 100% 129 110 81% 99 80% 130 63% 64% 66% 85 62% 90 89 60% 81 80 63 52 40% 30 20% 2014 2015 2016 2017 2018 -20 2014 2015 2016 2017 2018 0% 2014 2015 2016 2017 2018 Or
Slide 15: Revenue, Operating Profit & Margin
Revenue Operating Profit & Margin Operating Profit Operating Profit Margin HK’m HK’m 94 96 91 92 100 72% 72% 80% 69% 70% 69% 81 70% 80 66 68.1 67.5 60% 63 60 55.6 50% 40% 40 30% 20% 20 10% 0 0% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 15
Slide 16: Revenue Distribution, Operating Profit & Margin
Revenue Distribution Operating Profit & Margin Maintenance Newbuilding HK’m Operating Profit Operating Profit Margin HK’m 80 20% 1,199 66 1,097 1,065 1,100 1,050 58 60 15% 51 47 42 40 10% 6% 5% 5% 4% 4% 20 5% 0 0% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 16
Slide 17: Coatings: Revenue, Operating Profit & Sales Volume
Revenue Distribution Operating Profit & Margin Industrial Anti-Corrosion Coatings and Others Operating Profit Operating Profit Margin HK’m HK’m Container Coatings 150 8% 10% 6% 1,391 1% 0.2% 1,109 100 0% 105 889 960 -3% 50 70 -10% 637 7 2 0 -20% (50) (22) -30% 2014 2015 2016 2017 2018 2014 2015 2016
Slide 18: Sales Volume; Share of Profit from Jotun
Sales Volume Share of Profit from Jotun Tonnes 112,639 HK’m 107 92,814 88 90,567 90,925 86,308 65 64 7 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 18
Slide 19: Revenue and Sales Volume; Segment PBT
Revenue and Sales Volume Segment PBT Revenue Segment PBT HK’m Tonnes HK’m Sales Volume 25.0 PBT from SF 8,000 3,000 19.9 7,000 6,504 20.0 5,815 15.8 6,000 15.0 12.1 12.0 4,767 2,000 5,000 2,315 10.0 3,979 2,115 1,927 5.3 4,000 3.7 3.0 4.0 5.0 1.9 2,780 3,000 1,147 1,000 0.0 2,000 865 2014 2015 2016
Slide 20: Financials
Financials <4
Slide 21: Balance sheet summary FY2017 vs FY2018
(HK$’ mn) FY2017 FY2018 YoY Factors Receivables down 10.5% YoY, inventory down Total Assets 9,610.7 9,256.7 -3.7% 25.2% on enhanced operational efficiency Total Liabilities 1,397.1 1,102.0 -21.1% Payables down 51.5% YoY Shareholders’ 7,914.1 7,853.9 -0.8% Equity Cash & Cash 6,487.0 6,375.7 -1.7%
Slide 22: Cash flow summary FY2017 vs FY2018
(HK$’ mn) FY2017 FY2018 Factors Cash & Cash Equivalents – Beg’ 1,281.9 983.6 Net cash from Operating Higher operating efficiency as receivables down (202.9) 48.0 Activities 10.5% YoY, inventory down 25.2% YoY Net cash from Investing 271.9 156.0 Acquired 33% stakes in Nasurfar Activities Net cash
Slide 23: Share Price and price multiples
Share Price HK$2.69 (As at 31 Dec 2018) Per share Price multiples Book Value HK$5.12 0.53X Tangible Book Value HK$5.06 0.53X Cash & Cash Equivalents HK$4.16 0.65X Net Cash Value HK$3.44 0.78X EPS HK$0.1867 14.4X DPS / Yield HK$0.14 5.2% Dividend Yield 23
Slide 24: Appendix: Corporate Profile
Appendix: Corporate Profile
Slide 25: COSCO SHIPPING International is a HK-based shipping services provider
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 26: China COSCO SHIPPING Corp. group structure
China COSCO SHIPPING Corp.* Shipping Equipment Shipping Social 50.01% Shipping Logistics Internet+ Finance Manufacturing Services Services 45.47% 50.94% 39.02% 66.12% COSCO SHIPPING COSCO SHIPPING COSCO SHIPPING China Shipping COSCO SHIPPING Network Holdings Development International 1919.HK / 60191
Slide 27: General Description
Marine Insurance Marine Equipment & Ship Trading Agency Coatings Marine Bunker Supply Brokerage Spare Parts Supply As the “sole agent” for COSCO SHIPPING’s fleet to provide centralised procurement, and about 70% Two JVs produce and sell Sinfeng (100%-owned) and of the total revenue from these th
Slide 28: 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% equityEntering into Acquired COSCO Insurance Brokers Divested the Acquired
Slide 29: 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
Slide 30: Notes
Notes 30
COSCO SHIPPING International (Hong Kong) — FY2018 Earnings Presentation on 6ix