Cosco Shipping International (hong Kong) Co., Ltd. · HKEX:517
Cosco Shipping International (hong Kong) — H1 2020 Earnings Presentation
24 slides from Cosco Shipping International (hong Kong)'s earnings presentation, Aug 20, 2020
Slide 1: 2020 Interim Results
cosco PH s#HR(S8)ARAA SHIPPING cosCo SHIPPING INTERNATIONAL (HONG KONG) CO., LTD. AZ 2020 Interim Results QOS. *, Aug 2020
Slide 2: 2020 Interim Result
2020 Interim Result
Slide 3: Resilience, countercyclical nature, strong financial fundamentals highlight our uniqueness
Resilience, countercyclical nature, strong financial fundamentals highlight our uniqueness amid macro-challenges PBT from core shipping services business up 26% YoY EPS: 11.78 cents EPS: 9.79 cents DPS: 9.5 cents EPS EPS: 8.59 cents -12% YoY DPS: 7 cents Payout: 80.6% DPS: 6.5 cents Payout: 71.5% Pa
Slide 4: Income statement 1H2019 vs 1H2020
(HK$’ m) 1H2019 1H2020 YoY Revenue 1,626.0 1,482.8 -9% Gross profit 274.2 266.3 -3% Other income and gains/(losses) – net (8.5) (22.1) +160% Selling, Admin & General expenses (241.1) (242.8) +1% Operating profit 59.9 37.6 -37% Finance income – net 105.8 73.5 -31% Share of profit/(losses) from JVs &
Slide 5: Balance sheet and per share data
(HK$’ m) As of 30 Jun 2019 As of 31 Dec 2019 As of 30 Jun 2020 Total Assets 9,284.1 9,376.9 9,644.2 Total Liabilities 1,119.3 1,158.7 1,489.7 Shareholders’ equity 7,869.7 7,926.4 7,865.4 Cash on Hand 6,166.4 6,319.7 6,195.5 Debt to Equity 0.8% 0.8% 1.0% Current Ratio 7.7x 7.5x 5.9x Quick Ratio 7.4x
Slide 6: Segment Review
Segment Review
Slide 7: Segment PBT: Shipping Services and General Trading
(HK$’ m) 1H2019 1H2020 YoY Shipping Services 108.2 136.6 +26% - Ship Trading Agency 32.2 20.6 -36% - Insurance Brokerage 23.2 30.3 +31% - Marine Equipment 36.1 41.9 +16% - Coatings 25.8 36.4 +41% - Marine Fuel Trading (9.0) 7.5 Turnaround Profit (HK$’ m) 1H2019 1H2020 YoY General Trading 6.9 2.4 -65
Slide 8: Ship Trading PBT
PBT HK$ m 1H2019 1H2020 32.2 Orders through COSCO SHIPPING No. of mn No. of mn Ship Trading vessel DWT vessel DWT 20.6 Newbuild delivery 8 1.3 20 0.8 Newbuild contracts 11 1.6 12 0.6 -36% Secondhand vessels 11 0.2 16 0.2 Orderbook on hand* 84 10.09 54 7.42 1H2019 1H2020 10
Slide 9: Insurance Brokerage PBT
PBT HK$ m 30.3 1. Revenue increased by 21% to $42.9m in 1H2020 23.2 +31% vs $35.6m in 1H2019 2. Premium of war risk insurance increased 3. Pressures on commission rate slightly eased 1H2019 1H2020 11
Slide 10: Marine Equipment PBT
PBT HK$ m 41.9 1. Revenue increased by 12% to $714.4m in 36.1 1H2020 vs $640.1m in 1H2019 +16% 2. Increased demand for maintenance 1H2019 1H2020 Adjusted PBT (taking out FX factor) HK$ m 44.1 1. FX losses of $2.2m in 1H2020 vs $0.7m in 36.8 1H2019 +20% 2. Adjusted PBT margin 6.2 % in 1H2020 vs 5.7%
Slide 11: Coatings PBT
PBT of COSCO Kansai Profit of COSCO Juton Profit of Nasurfar HK$ m HK$ m 32.6 HK$ m 3.9 2.7 2.2 19.2 +70% 1.6 -43% -41% 1H2019 1H2020 1H2019 1H2020 1H2019 1H2020 1. All sales volume -16% YoY 1. Revenue continued to record due to pandemic impacts double digit increase larger 1. Earnings declined due
Slide 12: Marine Fuel Trading PBT
PBT HK$ m 7.5 HK$ million 1H19 1H20 Turnaround PBT of Sinfeng (2.2) (1.4) profit Share of profit from (9.0) (6.9) 8.8 Double Rich 1. Sinfeng’s business was mainly Asphalt-related after purposely trimmed down for risk control 2. Double Rich recorded strong demand for low- sulphur fuel and efficient c
Slide 13: General Trading PBT
PBT HK$ m 6.9 (tonnes) 1H19 1H20 YoY Asphalt sale 69,690 65,801 -6% volume 2.4 -65% 1. Asphalt prices declined with crude oil that impacted on ASP 1H2019 1H2020 2. Suspension of some projects due to Pandemic 15
Slide 14: Market Review
Market Review
Slide 15: Global Order Book
Global Order Book ‘m DWT Global China 226 218 191 170 100 96 85 80 2017 2018 2019 2020* Source: Clarksons *Latest Year to Date Figure 17
Slide 16: Clarksons Newbuilding Price Index, Delivery and Contracting
Clarksons Newbuilding Price Index 140 138 133 131 130 130 130 128 123 125 120 110 2013 2014 2015 2016 2017 2018 2019 Apr 2020 Newbuilding Delivery Newbuilding Contracting Global China Global China m DWT m DWT 120 120 98 99.2 95.3 100 91.3 100 80.7 74.8 74.9 80 69.9 80 60 60 38.7 35.3 37.2 30.4 40 41
Slide 17: 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 3,786 3,152 2,365 2,238 2,086 1,775 2,038 1,763 1,419 958 2017 2018 2019 1H2019 1H2020 Source: Company Statistical Data 19
Slide 18: Strategic Direction
Strategic Direction
Slide 19: Leading International Shipping Service Company
Shipping services unified operation platform Ample internal resources Leading Clear vision Strong support International from COSCO Shipping SHIPPING Group Service Company Non- financial business investment platform 21
Slide 20: Appendix: Corporate Profile
Appendix: Corporate Profile
Slide 21: China COSCO SHIPPING Corp.
China COSCO SHIPPING Corp.* Shipping Equipment Shipping Social 50.01% Shipping Logistics Internet+ Finance Manufacturing Services Services 45.47% 50.94% 39.02% 67.00% COSCO SHIPPING COSCO SHIPPING COSCO SHIPPING China Shipping COSCO SHIPPING Network Holdings Development International 1919.HK / 60191
Slide 22: COSCO SHIPPING International (Hong Kong) corporate 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 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% equityEntering into Acquired COSCO Insurance Brokers Divested the Acquired
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
COSCO SHIPPING International (Hong Kong) — H1 2020 Earnings Presentation on 6ix