Cosco Shipping International (hong Kong) Co., Ltd. · HKEX:517
Cosco Shipping International (hong Kong) — FY2023 Earnings Presentation
28 slides from Cosco Shipping International (hong Kong)'s earnings presentation, Mar 26, 2024
Slide 1: Green and Smart Sailing Areas - Annual Results
ees Green aind Smart Salling: ter te Areas: ee - Annual Resut é
Slide 2: Uniqueness, Resilience, Persistence
Uniqueness Resilience Persistence The major shipping services Well diversified shipping With a track record of positive provider of COSCO SHIPPING services business portfolio net profit and shareholder’s Corp. demonstrated strong return for 20 consecutive resilience. years. 6.4% 77% >HK$6 Billion Ne
Slide 3: Profit attributable to Shareholders and Earnings per share
Profit attributable to Shareholders Earnings per share (HK$) (HK$’ 000) 593,673 +77% 0.4033 +71% ➢ Strong performance in core business of 0.2274 shipping services FY2022 FY2023 ➢ Share of profit/(losses) 347,062 from JVs & Associates jumped 100% YoY ➢ Significant increase in Dividends per share (HK$
Slide 4: Payout Ratio and DPS
Payout Ratio DPS (HK$) 0.5 120% 99% FY2022 FY2023 Total 99.60% 101% 99% 0.4 0.40100% 77% 75% 76% 73% 80% 0.3 Shares 61% repurchased 51,262,000 15,722,000 66,984,000 55% 60% 0.22 0.225 0.2 0.19 0.18 40% 0.16 0.165 0.145 0.14 0.13 % of share repurchased to 0.1 4.4% 20% prior issued shares 0 0% FY14 FY
Slide 5: PBT of Core-shipping services business
PBT of Core-shipping services business (HK$’ 000) 600,000 500,338 +33% 500,000 YoY 393,370 400,000 372,400 363,305 375,665 300,000 311,026 293,736 275,235 273,087 200,000 216,179 100,000 - FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
Slide 6: Interest income
Interest income (HK$ '000) As at As at As at 2H 1H 31 Dec 2022 30 Jun 2023 31 Dec 2023 300,000 266,716 250,000 Cash on Hand 5,933,120 6,074,373 6,261,376 200,000 +171% 120,495 (HK$’ 000) 150,000 98,366 FY22 1H23 FY23 100,000 22,249 146,221 50,000 76,117 - Average Cash 1.62% 4.01% 4.37% FY222 FY23 re
Slide 7: Shareholders' equity per share, cash on hand, debt
HK$5.33 HK$6.26B HK$0 Shareholders’ equity Cash on hand Debt per share • Up 4% YoY • Up 6% YoY • Maintains $0 debt/bank borrowings as at 31 Debt 2023 11% 8.3x 8.0x Liabilities to Asset ratio Current ratio Quick ratio • Down 1ppt YoY Improved from 7.6x as at 31 Dec Improved from 7.3x as at 31 Dec 202
Slide 8: Shipping service industry cluster as strategic development direction
COSCO SHIPPING International takes the shipping service industry cluster as its strategic development direction to establish a green, low-carbon, digital and intelligent shipping service platform. Ship Trading Insurance Supply of Marine Production & Sale Intelligent Shipping Agency Brokerage Equipme
Slide 9: Joint Venture with COSCO SHIPPING Technology: Smart Sailing Platform
On 3 February 2023, COSCO SHIPPING International (Hong Kong) entered into the Investment and Cooperation Agreement with COSCO SHIPPING Technology in relation to the formation of the Joint Venture, which will be a shipping services enterprise providing green, low-carbon and Smart Sailing Platform dig
Slide 10: Acquisition of Helen Insurance Brokers
On 10 November 2023, acquired the entire issued share Revenue capital of Helen Insurance Brokers Limited from COSCO FY21 1H22 FY22 1H23 (HK$’000) SHIPPING Development (Hong Kong) Co., Limited. Insurance 102,152 56,453 114,584 76,870 brokerage Benefits: A milestone for the Group to further expand and
Slide 11: Shanghai JOYFuel Green Energy established
Strengths： State Power Investment On 29 December 2023, Shanghai JOYFuel Green Energy Corporation, its business established by COSCO Shipping International (Hong Kong), involves new energy, Jilin Electric and SIPG Energy, as an investment platform comprehensive smart energy, Jilin focusing on renewab
Slide 12: Revenue by segment FY22 vs FY23
FY22 FY23 86,782 (3%) 85,413 (3%) 97 (0%) 114,584 (4%) 139,707 (5%) 1,067,153 (36%) (HK$’ 000) 826,045 1,669,821 (30%) (57%) 1,725,018 (62%) Ship trading Insurance brokerage Coatings Marine equipment Intelligent shipping services
Slide 13: PBT by segment FY22 vs FY23
FY22 FY23 52,877 (14%) -3,446 (-1%) 46,772 (9%) 254,644 (HK$’ 000) (51%) 95,672 (19%) 152,362 (41%) 81,400 (22%) 106,696 (21%) 89,026 (24%) Ship trading Insurance brokerage Coatings Marine equipment Intelligent shipping services
Slide 14: Ship trading results
Revenue PBT PBT Margin (HK$’ 000) FY22 FY23 52,877 61.9 86,782 % 46,772 53.9 No. of new build 85,413 % 18 16 vessels delivery New build vessels 855,400 792,200 delivery (DWT) No. of new build 40 57 vessels order New build vessels 2,094,776 4,207,750 order (DWT) No. of 2nd-hand 23 17 vessels traded F
Slide 15: Insurance brokerage results
Revenue (HK$’ 000) PBT PBT Margin 71.0% 68.5% 139,707 95,672 • Continued expansion in 81,400 customer base. 114,584 • Significant increase in the premiums rates of hull, P&I and war risks insurance. FY22 FY23 FY22 FY23 FY22 FY23 +22% +18% -2.5ppt
Slide 16: Marine equipment results
Revenue (HK$’ 000) PBT PBT Margin 6.2% 106,696 1,669,821 1,725,018 89,026 5.3% • Increased customer base and scope. • Margins improved on higher interest income and lower fx-losses. FY22 FY23 FY22 FY23 FY22 FY23 +3% +20% +0.7ppt
Slide 17: Coatings results
Container coatings Revenue (HK$’ 000) Operating profit FY22 19,788 1,067,153 35,700 826,045 FY23 11,750 -41% Tonnes 15,928 Industrial heavy-duty anti-corrosion coatings FY22 15,949 FY22 FY23 FY22 FY23 -23% -55% FY23 19,119 +20%
Slide 18: Share of profit and sales volume
Share of profit (HK$’ 000) Sales volume New build vessel (litres) Maintenance (litres) 232,255 +118% 61,353,000 30,628,000 FY22 106,720 +22% +12% 75,030,000 34,247,000 FY23 FY22 FY23
Slide 19: Business outlook by segment
Ship trading • amidst the pressure of decarbonization and the shift towards green shipping Coatings practices, driving an ongoing increase in new vessel orders. • Marine coatings sector will continue to benefit from the demand for new vessels, Marine equipment but profit margins will be determined b
Slide 20: Appendix / Supplementary information
Appendix /Supplementary information
Slide 21: Income statement summary
(HK$’ 000) 1H22 2H22 1H23 2H23 FY22 FY23 YoY Revenue 1,803,925 2,158,614 1,620,612 1,721,117 3,962,539 3,341,729 -16% Gross profit 316,357 344,255 343,129 320,505 660,612 663,634 0% Other income and gains/(losses) – 31,658 -48,930 38,764 -45,110 -17,272 -6,346 -63% net Selling, Admin & -256,729 -240
Slide 22: Balance sheet summary
(HK$’ 000) As at 31 Dec 2022 As at 30 Jun 2023 As at 31 Dec 2023 Total Assets 9,234,493 9,158,429 9,205,229 Total Liabilities 1,112,913 938,182 1,017,830 Shareholders’ equity 7,802,587 7,873,313 7,839,455 Cash on Hand 5,933,120 6,074,373 6,261,376 Debt to Equity 0.00% 0.00% 0.00% Current Ratio 7.6x
Slide 23: Issued shares and net cash per share
As at 31 Dec 2022 As at 30 Jun 2023 As at 31 Dec 2023 Issued Shares 1,481,693,429 1,466,749,429 1,465,971,429 Shareholders’ Equity(HK$) 5.27 5.37 5.35 Net Cash (HK$), (Cash on Hand less short term 4.00 4.14 4.27 borrowings) Net Cash (HK$), (Cash on Hand minus Total 3.25 3.50 3.58 Liabilities)
Slide 24: Segment results FY2023
Intelligent Total - (HK$’ 000) Marine Insurance General Coatings Ship trading shipping shipping Others Total equipment brokerage trading services services Revenue 826,045 1,725,018 86,782 139,707 97 2,777,649 564,080 0 3,341,729 Operating 15,928 97,521 41,029 90,908 (3,525) 241,861 (45,059) 2,014 19
Slide 25: Segment results FY2022
Intelligent Total - (HK$’ 000) Marine Insurance General Coatings Ship trading shipping shipping Others Total equipment brokerage trading services services Revenue 1,067,153 1,669,821 85,413 114,584 N/A 2,936,971 1,025,568 0 3,962,539 Operating 35,700 86,332 48,598 79,626 N/A 250,256 (3,160) (6,001)
Slide 26: Shipbuilding price indices by vessel type
100 200 250 150 0 50 Aug-2009 Dec-2009 Apr-2010 Aug-2010 Dec-2010 Source: Clarksons Apr-2011 Aug-2011 Dec-2011 Apr-2012 Aug-2012 Dec-2012 Apr-2013 Aug-2013 Dec-2013 Apr-2014 Tankers Aug-2014 Dec-2014 Apr-2015 Aug-2015 Dec-2015 Apr-2016 Bulks Aug-2016 Dec-2016 Apr-2017 Aug-2017 Dec-2017 Apr-2018 Aug-
Slide 27: Container output and ASP by month
‘000 TEU USD per TEU Total Output - 2022 Total Output - 2023 ASP - 2022 ASP - 2023 450,000 4,000 400,000 3,500 350,000 3,000 300,000 2,500 250,000 2,000 200,000 1,500 150,000 1,000 100,000 50,000 500 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Company data 27
Slide 28: Disclaimer
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 i
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