SEHK:1199

Stock Analysis Report

Executive Summary

COSCO SHIPPING Ports Limited, an investment holding company, engages in managing and operating terminals and related other businesses in Mainland China, Southeast Asia, the Middle East, Europe, and the Mediterranean.

Snowflake

Fundamentals

Undervalued second-rate dividend payer.


Similar Companies

Share Price & News

How has COSCO SHIPPING Ports's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.3%

SEHK:1199

3.0%

HK Infrastructure

1.9%

HK Market


1 Year Return

-11.1%

SEHK:1199

-7.1%

HK Infrastructure

-10.4%

HK Market

1199 underperformed the Infrastructure industry which returned -7.1% over the past year.

1199 matched the Hong Kong Market (-10.4%) over the past year.


Share holder returns

1199IndustryMarket
7 Day2.3%3.0%1.9%
30 Day-7.3%-4.8%-7.5%
90 Day-8.3%-5.0%-4.4%
1 Year-7.1%-11.1%-1.6%-7.1%-7.2%-10.4%
3 Year-11.5%-20.2%-4.8%-17.3%15.3%3.9%
5 Year-20.6%-39.0%7.6%-14.3%10.1%-8.1%

Price Volatility Vs. Market

How volatile is COSCO SHIPPING Ports's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is COSCO SHIPPING Ports undervalued based on future cash flows and its price relative to the stock market?

40%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

COSCO SHIPPING Ports's share price is below the future cash flow value, and at a moderate discount (> 20%).

COSCO SHIPPING Ports's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

COSCO SHIPPING Ports is overvalued based on earnings compared to the HK Infrastructure industry average.

COSCO SHIPPING Ports is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

COSCO SHIPPING Ports is good value based on expected growth next year.


Price Based on Value of Assets

COSCO SHIPPING Ports is good value based on assets compared to the HK Infrastructure industry average.


Next Steps

Future Growth

How is COSCO SHIPPING Ports expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

COSCO SHIPPING Ports's revenue is expected to grow by 10% yearly, however this is not considered high growth (20% yearly).

COSCO SHIPPING Ports's earnings are expected to grow by 10.8% yearly, however this is not considered high growth (20% yearly).

COSCO SHIPPING Ports's revenue growth is positive but not above the Hong Kong market average.

COSCO SHIPPING Ports's earnings growth is positive but not above the Hong Kong market average.

COSCO SHIPPING Ports's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

COSCO SHIPPING Ports is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has COSCO SHIPPING Ports performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

COSCO SHIPPING Ports's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

COSCO SHIPPING Ports's 1-year earnings growth is negative, it can't be compared to the 5-year average.

COSCO SHIPPING Ports's 1-year earnings growth is negative, it can't be compared to the HK Infrastructure industry average.


Return on Equity

COSCO SHIPPING Ports has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

COSCO SHIPPING Ports used its assets less efficiently than the HK Infrastructure industry average last year based on Return on Assets.


Return on Capital Employed

COSCO SHIPPING Ports's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is COSCO SHIPPING Ports's financial position?


Financial Position Analysis

COSCO SHIPPING Ports is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

COSCO SHIPPING Ports's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

COSCO SHIPPING Ports's level of debt (43.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (43% vs 43.3% today).

Debt is not well covered by operating cash flow (10.5%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

What is COSCO SHIPPING Ports's current dividend yield, its reliability and sustainability?

5.34%

Expected Dividend Yield


Dividend Yield and Payments Analysis

COSCO SHIPPING Ports's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.25%).

COSCO SHIPPING Ports's dividend is below the markets top 25% of dividend payers in Hong Kong (6.18%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

What is the CEO of COSCO SHIPPING Ports's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Wei Zhang (45yo)

3.3yrs

Tenure

US$872,000

Compensation

Mr. Wei Zhang has been Chairman and Managing Director of COSCO SHIPPING Ports Limited since April 25, 2019 and April 27, 2016 respectively and also has been its Executive Director since August 14, 2015. Mr ...


CEO Compensation Analysis

Wei's remuneration is higher than average for companies of similar size in Hong Kong.

Wei's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.6yrs

Average Tenure

57yo

Average Age

The tenure for the COSCO SHIPPING Ports management team is about average.


Board Age and Tenure

6.0yrs

Average Tenure

57yo

Average Age

The tenure for the COSCO SHIPPING Ports board of directors is about average.


Insider Trading

More shares have been bought than sold by COSCO SHIPPING Ports individual insiders in the past 3 months.


Recent Insider Transactions

SellUS$2,806,17508 Aug 19
Hermes Investment Management Limited
EntityCompany
Shares414,000
Max PriceUS$6.78
BuyUS$2,378,93617 Jul 19
COSCO SHIPPING Holdings Co., Ltd.
EntityCompany
Shares322,000
Max PriceUS$7.39
BuyUS$7,89410 Jul 19
Huangjun Deng
EntityIndividual
Role
Member of the Board of Directors
Deputy MD & Executive Director
Shares1,059
Max PriceUS$7.45
BuyUS$73,81010 Jul 19
Tin Yau Wong
EntityIndividual
Role
Member of the Board of Directors
Deputy MD & Executive Director
Shares9,902
Max PriceUS$7.45
BuyUS$48,48810 Jul 19
Wei Zhang
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares6,505
Max PriceUS$7.45
BuyUS$98,51518 Oct 18
Tin Yau Wong
EntityIndividual
Role
Member of the Board of Directors
Deputy MD & Executive Director
Shares13,090
Max PriceUS$7.53
BuyUS$25,95018 Oct 18
Meng Fang
EntityIndividual
Shares3,448
Max PriceUS$7.53
BuyUS$51,89918 Oct 18
Wei Zhang
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares6,896
Max PriceUS$7.53
BuyUS$8,64718 Oct 18
Huangjun Deng
EntityIndividual
Role
Member of the Board of Directors
Deputy MD & Executive Director
Shares1,149
Max PriceUS$7.53

Ownership Breakdown


Management Team

  • Michelle Hung (49yo)

    General Counsel & Company Secretary

    • Tenure: 22.8yrs
  • Kelvin Wong (59yo)

    Deputy MD & Executive Director

    • Tenure: 23.1yrs
    • Compensation: US$487.00k
  • Fusheng Zhang (68yo)

    EVP - China Ocean Shipping (Group) Company and Director of COSCO Container Lines Company Ltd

    • Tenure: 0.0yrs
    • Compensation: US$8.00k
  • Futian Wang (68yo)

    President of COSCO Hong Kong

    • Tenure: 0.0yrs
    • Compensation: US$8.00k
  • Wei Zhang (45yo)

    Chairman & MD

    • Tenure: 3.3yrs
    • Compensation: US$872.00k
  • Huangjun Deng (55yo)

    Deputy MD & Executive Director

    • Tenure: 3.8yrs
    • Compensation: US$377.00k
  • Xiaomin Zeng (59yo)

    Deputy Managing Director

    • Tenure: 3.3yrs
  • Dayu Zhang (46yo)

    Deputy Managing Director

    • Tenure: 3.3yrs

Board Members

  • Kelvin Wong (59yo)

    Deputy MD & Executive Director

    • Tenure: 23.1yrs
    • Compensation: US$487.00k
  • Adrian David Li (46yo)

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: US$56.00k
  • Fusheng Zhang (68yo)

    EVP - China Ocean Shipping (Group) Company and Director of COSCO Container Lines Company Ltd

    • Tenure: 0.0yrs
    • Compensation: US$8.00k
  • Rita Fan (73yo)

    Independent Non Executive Director

    • Tenure: 10.6yrs
    • Compensation: US$50.00k
  • Wei Zhang (45yo)

    Chairman & MD

    • Tenure: 3.3yrs
    • Compensation: US$872.00k
  • Huangjun Deng (55yo)

    Deputy MD & Executive Director

    • Tenure: 3.8yrs
    • Compensation: US$377.00k
  • Haimin Wang (46yo)

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: US$15.00k
  • Yiu Kin Lam (64yo)

    Independent Non-Executive Director

    • Tenure: 4.0yrs
    • Compensation: US$40.00k
  • Ergang Fan (64yo)

    Independent Non-Executive Director

    • Tenure: 6.0yrs
    • Compensation: US$33.00k
  • Boming Feng (50yo)

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: US$4.00k

Company Information

COSCO SHIPPING Ports Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: COSCO SHIPPING Ports Limited
  • Ticker: 1199
  • Exchange: SEHK
  • Founded: 1994
  • Industry: Marine Ports and Services
  • Sector: Transportation
  • Market Cap: HK$20.929b
  • Shares outstanding: 3.16b
  • Website: https://ports.coscoshipping.com

Number of Employees


Location

  • COSCO SHIPPING Ports Limited
  • COSCO Tower
  • 49th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSPK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1994
1199SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 1994
CTHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1994
1199SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 1994
1199SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 1994
CSPK.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

COSCO SHIPPING Ports Limited, an investment holding company, engages in managing and operating terminals and related other businesses in Mainland China, Southeast Asia, the Middle East, Europe, and the Med ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 12:42
End of Day Share Price2019/08/23 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.