Cosco Shipping International (hong Kong) Co., Ltd. · HKEX:517
Cosco Shipping International (hong Kong) — FY2020 Earnings Presentation
25 slides from Cosco Shipping International (hong Kong)'s earnings presentation, March 2021
Slide 1: 2020 Annual Results
17 NN ———— cosoo PRBEZRR(SE)ARAA SHIPPING cosCo SHIPPING INTERNATIONAL (HONG KONG) CO., LTD. “AZ 2020 Annual Results Mar 2021
Slide 2: FY2020 Annual Results
FY2020 Annual Results
Slide 3: Higher Dividend Highlights Robust Growth in Core Businesses
Higher Dividend Highlights Robust Growth in Core Businesses Operating Profit PBT of Core Businesses Dividend Per Share HK$’ 000 HK$’ 000 HK$’ cents 132,500 363,305 22.0 273,087 16.5 84,662 FY2019 FY2020 FY2019 FY2020 FY2019 FY2020 3
Slide 4: Unprecedented Approx. 100% Payout Ratio
Unprecedented Approx. 100% Payout Ratio Underlining our Commitment to Shareholders’ Return EPS: EPS: 22.08 cents 21.57 cents EPS: +2% DPS: 22.0 cents Payout: DPS: DPS: +33% Approx. 100% 16.50 cents Payout: 76.5% FY2019 FY2020 4
Slide 5: FY2019 vs FY2020 income statement
(HK$’ m) FY2019 FY2020 YoY Revenue 3,265.7 3,442.9 +5% Gross profit 555.2 628.5 +13% Turnaround Other income and gains/(losses) – net (23.6) 11.9 profit Selling, Admin & General expenses (554.7) (625.3) +13% Operating profit 84.7 132.5 +57% Finance income – net 203.9 132.7 -35% Share of profit/(loss
Slide 6: Half-year income statement 1H2019 to 2H2020
(HK$’ m) 1H2019 2H2019 1H2020 2H2020 Revenue 1,626.0 1,639.8 1,482.8 1,960.1 Gross profit 274.2 281.0 266.3 362.2 Other income and (8.5) (15.1) (22.1) 34.0 gains/(losses) – net Selling, Admin & General (241.1) (313.6) (242.8) (382.5) expenses Operating profit 59.9 24.7 37.6 94.9 Finance income – net
Slide 7: Balance sheet and per share data
(HK$’ m) As of 31 Dec 2019 As of 30 Jun 2020 As of 31 Dec 2020 Total Assets 9,376.9 9,644.2 9,938.7 Total Liabilities 1,158.7 1,489.7 1,511.0 Shareholders’ equity 7,926.4 7,865.4 8,113.0 Cash on Hand 6,319.7 6,195.5 6,518.6 Debt to Equity 0.8% 1.0% 1.1% Current Ratio 7.5x 5.9x 6.0x Quick Ratio 7.2x
Slide 8: Segment Review
Segment Review
Slide 9: Segment PBT FY2019 vs FY2020
(HK$’ m) FY2019 FY2020 YoY Shipping Services 273.1 363.3 +33% - Ship Trading Agency 56.0 73.7 +32% - Insurance Brokerage 58.4 64.9 +11% - Marine Equipment 67.1 74.1 +11% - Coatings 49.1 123.1 +151% - Marine Fuel Trading 42.5 27.5 -35% (HK$’ m) FY2019 FY2020 YoY General Trading 6.7 10.3 +53% 9
Slide 10: Segment PBT by half year
(HK$’ m) 1H2019 2H2019 1H2020 2H2020 Shipping Services 108.2 164.9 136.6 226.7 - Ship Trading Agency 32.2 23.8 20.6 53.1 - Insurance Brokerage 23.1 35.3 30.3 34.6 - Marine Equipment 36.1 31.0 41.8 32.2 - Coatings 25.8 23.3 36.4 86.8 - Marine Fuel Trading -9.0 51.5 7.5 20.0 (HK$’ m) 1H2019 2H2019 1H2
Slide 11: Ship Trading Agency
PBT FY19 FY20 Orders through COSCO SHIPPING No. of mn No. of mn HK$ m Ship Trading vessel DWT vessel DWT 73.7 Newbuild delivery 28 2.8 35 2.8 Newbuild contracts 22 3.3 19 1.3 56.0 Secondhand vessels 34 1.6 29 0.4 Orderbook on hand* 62 7.6 45 5.9 1. Revenue up 7% YoY to HK$91m 2. Operating profit mar
Slide 12: Insurance Brokerage
PBT HK$ m 1. Revenue up 11% to $92.2m 64.9 2. Premium of indemnity and non-marine 58.5 insurance increased 3. Overall commission rate stabilized 4. OPM at 69.4% in FY20 vs 67.3% in FY19 5. Revenue contribution from COSCO SHIPPING of 73% in FY20 vs74% in FY19 FY2019 FY2020 12
Slide 13: Marine Equipment
PBT HK$ m 74.1 1. Revenue up 4% to HK$1,316m 67.1 2. OPM at 5.6% in FY20 vs 5.3% in FY19 3. FX gains of $11.1m in FY20 vs losses of $5.4m in FY19 4. Revenue contribution from COSCO SHIPPING of 76% in FY20 vs 71% in FY19 FY2019 FY2020 13
Slide 14: Coatings: COSCO Kansai, COSCO Juton, Nasurfar
PBT of COSCO Kansai Profit of COSCO Juton Profit of Nasurfar HK$ m 17.0 HK$ m 99.5 HK$ m 6.7 6.0 41.3 1.8 FY2019 FY2020 FY2019 FY2020 FY2019 FY2020 1. All sales volume +10% YoY 2. OPM of 1.5% in FY20 vs 0.1% 1. Revenue and GPM continued 1. Expansion plan on track, in FY19 to improve due to higher Ph
Slide 15: Marine Fuel Trading
PBT HK$ m 42.5 HK$ million FY19 FY20 PBT of Sinfeng (4.6) (1.8) 27.5 Share of profit from 47.1 29.3 Double Rich 1. Sinfeng’s business purposely trimmed down 2. Double Rich’s profit declined due to lower oil prices FY2019 FY2020 15
Slide 16: General Trading
PBT HK$ m 10.3 (tonnes) FY19 FY20 YoY Asphalt sale 167,166 222,618 33% volume 6.7 1. Revenue was stable as volume up but ASP declined on lower oil prices 2. FX gains of HK$0.3m in FY20 vs FX losses of HK$4.5m in FY19 FY2019 FY2020 16
Slide 17: Market Review
Market Review
Slide 18: Global Order Book
Global Order Book ‘m DWT Global China 231 226 219 197 160.5 100.8 100 96.4 87 73.1 2016 2017 2018 2019 E2020 Source: Clarksons 18
Slide 19: Newbuilding Delivery and Contracting
Newbuilding Delivery Newbuilding Contracting Global China Global China m DWT m DWT 94.9 91.4 98.2 99.7 88 76 81 80 53.9 52.2 38.9 37.7 37.4 35.5 35.7 30.1 41.7 34.4 23.4 31.6 24.6 14.1 2017 2018 2019 E2020 E2021 E2022 2016 2017 2018 2019 E2020 Source: Clarksons 19
Slide 20: Newbuilding Prices
Newbuilding Prices Clarkson Newbuilding Price Index 131 810 803 802 China Newbuilding Price Index 130 798 800 793 130 129 789 790 129 785 129 128 780 779 775 780 128 775 775 127 127 770 127 127 127 126 127 755 760 126 125 125 126 750 124 123 740 122 730 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-
Slide 21: 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 3,786 Total Output ASP 2,791 2,365 2,256 2,086 1,763 2018 2019 2020 Source: Company Statistical Data 21
Slide 22: Appendix: Corporate Profile
Appendix: Corporate Profile
Slide 23: COSCO SHIPPING International corporate profile and 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 24: 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 25: 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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