COSCO Shipping Holdings Co., Ltd – What You Need to Know

COSCO Shipping Holdings Co., Ltd – What You Need to Know

Listed on the Stock Exchange of Hong Kong since 30 June 2005 (under the ticker symbol SEHK:1919), and subsequently on the Shanghai Stock Exchange since 26 June 2007 (under the ticker symbol SHA:601919), COSCO Shipping Holdings Co., Ltd ($COSCO SHIP HOLD(1919.HK)) is in the business of providing container shipping, managing, and operating container terminals, along with other terminal-related businesses. 

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

Photo by Anja Bauermann on Unsplash

Here’s a review of the company’s performance over the last 5 years (between FY2017 and FY2021 – it has a financial year ending every 31 Dec), whether the current traded price is considered ‘cheap’/’expensive’:

Total Revenue & Net Profit:

  • Total revenue grew every year over the last 5 years, and at a very impressive compound annual growth rate (CAGR) of 29.8%.
  • Net profit, apart from in FY2018 (which declined 53.8% due to increase in operating and finance costs), grew in the remaining years; it recorded a CAGR of 101.9% – again very impressive.

Gross & Net Profit Margin:

  • Apart from in FY2018 (due to rising costs), the remaining years saw the company’s gross and net profit margin steadily rising; its gross profit and net margin, at 42.0% and 26.8% respectively, are the highest in 5 years.

Return on Equity (RoE):

  • Just like its gross & net profit margins, COSCO Shipping’s RoE grew in 4 out of 5 years, with its RoE at 67.1% being the highest in 5 years. 

Net Cash/Debt Position:

  • The company’s net debt position saw improvements over the years, and eventually turning into a net cash position in FY2021. 

Dividend Per Share:

  • No dividends paid out between FY2017 and FY2020. It declared a payout of HKD1.02 when it released its full year results for FY2021.

Is the Current Traded Price Considered ‘Cheap’/’Expensive’?

  • The current traded price is considered ‘cheap’ due to its current P/E & P/B ratios being lower-than-average, along with its current dividend yield being higher-than-average.

Minimum Lot Size:

  • Do note that the minimum lot size is 500 shares, and at its current traded price of HKD7.95, the minimum sum is HKD3,975.00 (or approx. SGD673.82) – excluding any fees. 

Disclaimer: At the time of writing, I am not a shareholder of COSCO Shipping Holdings Co., Ltd. 

Once again, this article is a guest post and was originally posted on ljunyuan‘s profile on InvestingNote. 

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