Cosco Shipping International (hong Kong) Co., Ltd. · HKEX:517
Cosco Shipping International (hong Kong) — FY2019 Earnings Presentation
26 slides from Cosco Shipping International (hong Kong)'s earnings presentation, March 2020
Slide 1: 2019 Annual Results
cosco PH s#HR(S8)ARAA SHIPPING cosco SHIPPING INTERNATIONAL (HONG KONG) CO., LTD. WAZ 2019 Annual Results QOS a, ; Mar 2020
Slide 2: FY2019 Annual Results
FY2019 Annual Results
Slide 3: Resilience, countercyclical nature, strong financial fundamentals highlight our uniqueness
Resilience, countercyclical nature, strong financial fundamentals highlight our uniqueness amid macro-challenges EPS: 21.57 cents EPS: 18.67 cents DPS: 16.5 cents DPS: 14.0 cents Payout: 76.5% Payout: 75.0% FY2018 FY2019 3
Slide 4: FY2018 vs FY2019 income statement
(HK$’ m) FY2018 FY2019 YoY Revenue 9,521.6 3,265.7 -66% Gross profit 566.1 555.2 -2% Other income and gains/(losses) – net 90.1 (23.6) Turnaround loss Selling, Admin & General expenses (549.3) (554.7) +1% Operating profit 181.6 84.7 -53% Finance income – net 158.7 203.9 +28% Share of profit/(losses)
Slide 5: 2H2018, 1H2019, 2H2019 results
(HK$’ m) 2H2018 1H2019 2H2019 HoH YoY Revenue 4,733.9 1,626.0 1,639.8 +1% -65% Gross profit 260.5 274.2 281.0 +3% +8% Other income and 15.0 (8.5) (15.1) +77% NA gains/(losses) – net Selling, Admin & General (292.5) (241.1) (313.6) +30% +7% expenses Operating profit 36.7 59.9 24.7 -59% -33% Finance i
Slide 6: Balance sheet and per share data
(HK$’ m) As of 31 Dec 2018 As of 30 Jun 2019 As of 31 Dec 2019 Total Assets 9,256.7 9,284.1 9,376.9 Total Liabilities 1,102.0 1,119.3 1,158.7 Shareholders’ equity 7,853.9 7,869.7 7,926.4 Cash on Hand 6,375.7 6,166.4 6,319.7 Debt to Equity 0.5% 0.7% 0.8% Current Ratio 7.8x 7.7x 7.5x Quick Ratio 7.5x
Slide 7: Segment Review
Segment Review
Slide 8: Segment profit FY2018 vs FY2019
(HK$’ m) FY2018 FY2019 YoY Shipping Services 216.2 273.1 +26% - Ship Trading Agency 91.3 56.0 -39% - Insurance Brokerage 58.2 58.5 +1% - Marine Equipment 66.2 67.1 +1% - Coatings 11.0 49.1 +346% - Marine Fuel Trading (10.5) 42.5 Turnaround profit (HK$’ m) FY2018 FY2019 YoY General Trading 17.0 6.7 -
Slide 9: Segment profit 2H2018, 1H2019, 2H2019
(HK$’ m) 2H2018 1H2019 2H2019 HoH YoY Shipping Services 88.2 108.2 164.9 +52% +87% - Ship Trading Agency 33.3 32.2 23.8 -26% -29% - Insurance Brokerage 34.2 23.2 35.3 +52% +3% - Marine Equipment 28.6 36.1 31.0 -14% +8% - Coatings 10.2 25.8 23.3 -10% +128% Turnaround Turnaround - Marine Fuel Trading
Slide 10: Ship Trading Agency PBT
PBT HK$ m FY18 FY19 Orders through 91.3 COSCO SHIPPING No. of mn No. of mn Ship Trading vessel DWT vessel DWT 56 Newbuild delivery 33 5.5 28 2.8 -39% Newbuild contracts 40 1.8 22 3.3 FY18 FY19 Secondhand vessels 24 0.65 34 1.6 Orderbook on hand* 70 7.3 62 7.6 Adjusted PBT (taking out FX factor) HK$
Slide 11: Insurance Brokerage PBT
PBT HK$ m 1. Revenue increased by 4% to $83.4m in FY19 vs $80.5m in 1H18 58.2 58.5 2. Premium of war risk insurance increased and growth in non-marine insurance +1% 3. Overall commission rate remained pressure FY18 FY19 11
Slide 12: Marine Equipment PBT
PBT HK$ m 1. Revenue increased by 15% to $1,262.1m in FY19 66.2 67.1 vs $1,100.5m in FY18 +1% 2. Increased number of external customers FY18 FY19 Adjusted PBT (taking out FX factor) HK$ m 72.1 1. FX losses of $5.4m in FY19 vs gains of $7.9m in 59.1 FY18 +22% 2. Adjusted PBT margin 5.7% in 1H19 vs 5.
Slide 13: Coatings: COSCO Kansai, Jotun, Nasurfar
PBT of COSCO Kansai Profit of COSCO Juton Profit of Nasurfar HK$ m HK$ m HK$ m 41.3 6.0 1.82 1.79 +473% -2% +201% 2.0 7.2 FY18 FY19 FY18 FY19 FY18 FY19 1. All sales volume +16.9% YoY 1. Revenue increased due to 1. Nasurfar was acquired in 2. Pressure on margin slightly higher volume and ASP Aug-2018
Slide 14: Marine Fuel Trading PBT
PBT HK$ m 42.5 HK$ million FY18 FY19 PBT of Sinfeng 4.0 (4.6) Share of profit from (14.4) 47.1 Turnaround Double Rich profit 1. Sinfeng’s business was purposely trimmed down for risk control 2. Double Rich recorded inventory provision in FY18 and turned normal in FY19 (10.5) 1H18 1H19 14
Slide 15: General Trading PBT
PBT HK$ m 17.0 -61% (tonnes) FY18 FY19 YoY 6.7 Asphalt sale 192,000 167,166 -13% volume FY18 FY19 Adjusted PBT 1. Absence of $17.2m reversal of provision recorded (taking out non-recurring factor) in FY18 HK$ m 6.9 2. Trimmed down asphalt retail business for structural optimization Turnaround profit
Slide 16: Market Review
Market Review
Slide 17: Global Order Book
Global Order Book ‘m DWT Global China 231 227 219 188 100.8 99.7 95.8 84 2016 2017 2018 2019 Source: Clarksons 17
Slide 18: Clarksons Newbuilding Price Index, Delivery and Contracting
Clarksons Newbuilding Price Index 138 133 131 130 130 126 125 123 2012 2013 2014 2015 2016 2017 2018 2019 Newbuilding Delivery Newbuilding Contracting Global China Global China m DWT m DWT 100.6 98 98.4 95.3 90.3 91.6 80.7 66.7 64.8 38.7 37.6 41.5 36.2 35.3 36.6 29.8 34 30.5 28.6 13.9 2016 2017 2018
Slide 19: Output and ASP 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 2,238 2,365 2,086 1,763 2017 2018 2019 Source: Company Statistical Data 19
Slide 20: Strategic Direction
Strategic Direction
Slide 21: 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 22: Appendix: Corporate Profile
Appendix: Corporate Profile
Slide 23: 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% 66.12% COSCO SHIPPING COSCO SHIPPING COSCO SHIPPING China Shipping COSCO SHIPPING Network Holdings Development International 1919.HK / 60191
Slide 24: COSCO SHIPPING International 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 25: 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 26: 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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