Cosco Shipping Holdings Co.Ltd(601919) announced last night that the controlling shareholder COSCO Shipping Group and its wholly-owned subsidiary intend to increase the holding of A-Shares and H shares of the company by 1.5-3 billion yuan within 12 months from the start of this increase
Among them, the controlling shareholder has increased the holding of 500000 A-Shares of the company on May 20; From May 19 to May 20, the company increased its holdings of H shares by 3025500 shares in total. After the completion of this shareholding increase, COSCO Shipping Group and its subsidiaries jointly hold 46.91% of the total share capital of the company
It is worth noting that this is not the first time the controlling shareholder has increased its holdings according to the announcement last year, COSCO Shipping Group increased its holding of 7.9 million shares (“initial increase”) on October 18, 2021. As of April 15, 2022, the increase was completed. The cumulative increase of shares of COSCO Shipping Group and its subsidiaries was about RMB 1.892 billion (including RMB 1.074 billion A-Shares and RMB 818 million H shares).
The purpose of the two increases is based on confidence in the company’s future development prospects , and recognition of the company’s investment value.
Benefiting from the continuous outbreak of shipping business under the epidemic in the previous two years, Cosco Shipping Holdings Co.Ltd(601919) once jumped to a bull stock that rose 10 times a year, from the low point of RMB 2.41 in May 2020 to July 2021, the cumulative increase was as high as 966%. Since then, the high-level correction has also been very tragic, with the cumulative decline of up to 49%
After hours data on Friday showed that Cosco Shipping Holdings Co.Ltd(601919) received net purchase of net purchase of net purchase of 23456 net purchase of RMB 336 million, and ranked ninth in the single day net purchase of Shanghai Stock connect.
On the news side, Baltic dry bulk freight index (BDI) rose for the sixth consecutive week, due to higher freight rates of various types of ships. The Baltic dry bulk freight index rose to 3344 points, the highest since December 13 last year, up 7.7% this week. Since this year, the index has shown an upward trend from its low point.
bdi is known as the economic indicator of the shipping industry , which is weighted by the spot freight of several main routes, and the freight is closely related to the profit of shipping stocks.
China Securities Co.Ltd(601066) believes that the impact of Russia Ukraine conflict may lead to the diversion of import and export trade to other countries , bring about the change of average transportation distance, and the trade rebalancing state may be chaotic. From the impact of historical trade disputes, epidemic crises and other events, it often brings additional costs of commodity supply substitution, leading to the rise of prices including transportation
Cosco Shipping Holdings Co.Ltd(601919) is mainly engaged in container shipping and terminal business. According to alphaliner statistics, the size of container fleet of company ranks third in the world 2021: the revenue of container shipping business was 327927 billion yuan, accounting for 98.27% of the total revenue; From a regional perspective, the overseas revenue of containers accounts for more than 90%.
According to the quarterly report of Cosco Shipping Holdings Co.Ltd(601919) I, the revenue reached 105.53 billion yuan, with a year-on-year increase of 62.75% The net profit was 17.76 billion yuan, a year-on-year increase of 1.76 billion yuan
Among them, container shipping business showed a trend of price reduction and increase company’s single box revenue of international routes was USD 297514/teu, with a year-on-year increase of USD 136636/teu, showing the high prosperity of the industry. Benefiting from this, the company realized USD 15.625 billion of route revenue in Q1, with a year-on-year increase of 67.54%. The freight volume of international routes fell by 7.7%, and China fell by 15.6% year-on-year. was more obvious than the decline of international routes , which was mainly due to the repeated epidemic situation in China in the first quarter of year-on-year
For the shipping boom in the second half of the year, Changjiang Securities Company Limited(000783) Han Yichao believes that with the gradual control of China’s epidemic situation and the release of early backlog transportation demand superimposed on the gradual arrival of the traditional peak season, may rebound in cargo volume and freight index, which will promote the recovery of the industry boom. On the other hand, since May 1, the US line will launch a new long-term freight rate on a large scale, further strengthening the Q2 price factor.
Sealand Securities Co.Ltd(000750) Licensor believes that the next key point is whether the industry can overcome the cycle 202324 is the period of centralized production of ships. At present, there are surplus worries at the supply side. As the demand for cooperation between liner companies is gradually stronger than the willingness to compete, Maersk, the leader, has repeatedly stated that it will not put transport capacity in disorder. If the industry can maintain orderly competition in the next year or later, it may usher in a new round of value revaluation.
According to the profit forecast and valuation calculation, China Industrial Securities Co.Ltd(601377) Wang Kai predicts that the net profit attributable to the parent company in Cosco Shipping Holdings Co.Ltd(601919) 20222024 will be 101563 billion yuan, 49.868 billion yuan and 10.528 billion yuan, and the growth rate of net profit in 2023 and 2024 will decline by 50.9% and 78.9% respectively
