COSCO SHIPPING Holdings Co., Ltd. (01919.HK) The situation in the Red Sea continues to be tense and freight rates are expected to rise May 28, 2024 106

PSR Recommendation: ACCUMULATE Status: Initiation
Target Price: HKD13.72

Overview
COSCO Shipping Holdings (01919.HK) is the listed flagship enterprise and capital platform of
COSCO Shipping Group’s main business of shipping and terminal operations. The company
has global routes, with more than 263 international routes, being attached at 594 ports in
144 countries and regions around the world, with a self-operated shipping capacity of
approximately 3 million TEUs. As for ports, the company operates and manages 224
container berths around the world, with a total annual design and processing Capacity of
141 million TEUs; the company’s SynCon Hub platform provides customers with one-stop
digital supply chain services.
Company Performance review
The company’s Q1 revenue in 2024 was 48.27 billion yuan (RMB, the same as below), an
increase of 1.94% YoY; the net profit attributable to shareholders of listed companies was
6.76 billion yuan, a decrease of 5.23% YoY; EPS was 0.42 yuan, a decrease of 4.55 % YoY. The
decrease in profits was mainly due to the fact that the container shipping industry was
facing many challenges such as weakening transportation and demand, rising capacity
supply, and geopolitical tensions. The market freight level has dropped significantly
compared with 2022. Since the growth in demand is far less than the growth in shipping
capacity, the container shipping market shifted from a weak balance between supply and
demand to oversupply from 2023. At the end of 2023, tensions in the Red Sea continued to
escalate, and the supply and demand relationship had been improved in the short term, but
it did not change the situation of wide supply and weak demand in the container shipping
market.

About the author

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Margaret Li
Analyst
Research

本科主修市場行銷和英語,並於香港浸會大學獲得經濟學碩士學位。現為輝立証券持牌分析師,主要負責能源和公用事業等板塊的研究。曾在大型銀行、券商和資產管理公司工作,對於期貨和大宗商品衍生品領域擁有銷售、研究分析和市場推廣等工作經驗。 Margaret, a holder of a Bachelor`s degree in Marketing and English and a Master`s degree in Applied Economics from Hong Kong Baptist University, is currently employed as a licensed analyst at Phillip Securities. She specializes in conducting research focusing on the energy and utilities sectors. Prior to her current position, Margaret gained valuable work experience in a large bank, securities firm, and asset management companies. Her expertise lies in sales, research analysis, and marketing within the fields of futures and commodities derivatives.

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