SEHK:1199

Stock Analysis Report

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Market Cap

HK$19.7b

Last Updated

2021/07/25 10:00 UTC

Data Sources

Company Financials +

Executive Summary

COSCO SHIPPING Ports Limited, an investment holding company, manages and operates terminals and related businesses in Mainland China, Southeast Asia, the Middle East, Europe, South America, the Mediterranean, and internationally. More Details


Snowflake Analysis

Average dividend payer and fair value.


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

Stable Share Price: 1199 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 1199's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-5.1%

1199

-0.9%

HK Infrastructure

-2.7%

HK Market


1 Year Return

45.1%

1199

3.0%

HK Infrastructure

13.3%

HK Market

Return vs Industry: 1199 exceeded the Hong Kong Infrastructure industry which returned 3% over the past year.

Return vs Market: 1199 exceeded the Hong Kong Market which returned 13.3% over the past year.


Shareholder returns

1199IndustryMarket
7 Day-5.1%-0.9%-2.7%
30 Day-4.6%-3.7%-6.0%
90 Day-6.9%-10.0%-7.7%
1 Year54.4%45.1%8.6%3.0%17.3%13.3%
3 Year-4.2%-19.2%-7.8%-22.0%8.7%-3.3%
5 Year-6.4%-25.6%-9.5%-29.0%44.6%19.0%

Long-Term 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 compared to its fair value and its price relative to the market?

7.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1199 (HK$5.95) is trading above our estimate of fair value (HK$4.18)

Significantly Below Fair Value: 1199 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1199 is poor value based on its PE Ratio (7.6x) compared to the Hong Kong Infrastructure industry average (5.8x).

PE vs Market: 1199 is good value based on its PE Ratio (7.6x) compared to the Hong Kong market (10.9x).


Price to Earnings Growth Ratio

PEG Ratio: 1199 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 1199 is good value based on its PB Ratio (0.5x) compared to the HK Infrastructure industry average (0.6x).


Future Growth

How is COSCO SHIPPING Ports forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1199's forecast earnings growth (8.1% per year) is above the savings rate (1.5%).

Earnings vs Market: 1199's earnings (8.1% per year) are forecast to grow slower than the Hong Kong market (19% per year).

High Growth Earnings: 1199's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1199's revenue (10.1% per year) is forecast to grow slower than the Hong Kong market (12.6% per year).

High Growth Revenue: 1199's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1199's Return on Equity is forecast to be low in 3 years time (6.6%).


Past Performance

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

2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1199 has a large one-off gain of $90.8M impacting its March 31 2021 financial results.

Growing Profit Margin: 1199's current net profit margins (31.4%) are lower than last year (35%).


Past Earnings Growth Analysis

Earnings Trend: 1199's earnings have grown by 2.6% per year over the past 5 years.

Accelerating Growth: 1199's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1199 had negative earnings growth (-6.1%) over the past year, making it difficult to compare to the Infrastructure industry average (7%).


Return on Equity

High ROE: 1199's Return on Equity (5.7%) is considered low.


Financial Health

How is COSCO SHIPPING Ports's financial position?


Financial Position Analysis

Short Term Liabilities: 1199's short term assets ($1.6B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: 1199's short term assets ($1.6B) do not cover its long term liabilities ($3.7B).


Debt to Equity History and Analysis

Debt Level: 1199's debt to equity ratio (47.7%) is considered high.

Reducing Debt: 1199's debt to equity ratio has increased from 30.4% to 47.7% over the past 5 years.

Debt Coverage: 1199's debt is not well covered by operating cash flow (10.8%).

Interest Coverage: 1199's interest payments on its debt are not well covered by EBIT (0.8x coverage).


Balance Sheet


Dividend

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

5.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1199's dividend (5.65%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.95%).

High Dividend: 1199's dividend (5.65%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.32%).


Stability and Growth of Payments

Stable Dividend: 1199's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1199's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.8%), 1199's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1199's dividends in 3 years are forecast to be well covered by earnings (40.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Dayu Zhang (48 yo)

1.83yrs

Tenure

US$817,000

Compensation

Mr. Zhang Dayu serves as Executive Director and Managing Director of COSCO SHIPPING Ports Limited since September 13, 2019. Mr. Zhang was the Deputy Managing Director of COSCO SHIPPING Ports Limited from A...


CEO Compensation Analysis

Compensation vs Market: Dayu's total compensation ($USD817.00K) is about average for companies of similar size in the Hong Kong market ($USD705.63K).

Compensation vs Earnings: Dayu's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 1199's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: 1199's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1199 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

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$19.726b
  • Shares outstanding: 3.32b
  • Website: https://ports.coscoshipping.com

Number of Employees


Location

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

Listings


Biography

COSCO SHIPPING Ports Limited, an investment holding company, manages and operates terminals and related businesses in Mainland China, Southeast Asia, the Middle East, Europe, South America, the Mediterrane...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/25 10:00
End of Day Share Price2021/07/23 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.