SEHK:1919

Stock Analysis Report

COSCO SHIPPING Holdings

Executive Summary

COSCO SHIPPING Holdings Co., Ltd., an investment holding company, engages in the container shipping, container terminals, and other businesses worldwide.

Rewards

Trading at 62.4% below its fair value

Earnings are forecast to grow 3.64% per year

Earnings grew by 190.1% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Proven track record and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1919's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.1%

1919

-4.9%

HK Shipping

-2.7%

HK Market


1 Year Return

-23.8%

1919

-16.3%

HK Shipping

-8.5%

HK Market

Return vs Industry: 1919 underperformed the Hong Kong Shipping industry which returned -16.3% over the past year.

Return vs Market: 1919 underperformed the Hong Kong Market which returned -8.5% over the past year.


Shareholder returns

1919IndustryMarket
7 Day-8.1%-4.9%-2.7%
30 Day-8.1%-6.2%-3.1%
90 Day-10.0%-5.7%2.4%
1 Year-23.8%-23.8%-10.3%-16.3%-5.2%-8.5%
3 Year-27.8%-27.8%-16.9%-22.4%12.0%0.7%
5 Year-32.3%-32.3%-22.6%-29.9%14.1%-4.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is COSCO SHIPPING Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1919 (HK$2.6) is trading below our estimate of fair value (HK$6.91)

Significantly Below Fair Value: 1919 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1919 is good value based on its PE Ratio (11.2x) compared to the Shipping industry average (11.6x).

PE vs Market: 1919 is poor value based on its PE Ratio (11.2x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: 1919 is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: 1919 is overvalued based on its PB Ratio (0.9x) compared to the HK Shipping industry average (0.7x).


Next Steps

Future Growth

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

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1919's forecast earnings growth (3.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 1919's earnings (3.6% per year) are forecast to grow slower than the Hong Kong market (11.7% per year).

High Growth Earnings: 1919's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1919's revenue (7.4% per year) is forecast to grow slower than the Hong Kong market (9.8% per year).

High Growth Revenue: 1919's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1919's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

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

15.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1919 has a large one-off gain of CN¥1.4B impacting its September 30 2019 financial results.

Growing Profit Margin: 1919's current net profit margins (1.5%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: 1919 has become profitable over the past 5 years, growing earnings by 15.2% per year.

Accelerating Growth: 1919's earnings growth over the past year (190.1%) exceeds its 5-year average (15.2% per year).

Earnings vs Industry: 1919 earnings growth over the past year (190.1%) exceeded the Shipping industry 7.4%.


Return on Equity

High ROE: 1919's Return on Equity (6.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is COSCO SHIPPING Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1919's short term assets (CN¥70.9B) do not cover its short term liabilities (CN¥74.0B).

Long Term Liabilities: 1919's short term assets (CN¥70.9B) do not cover its long term liabilities (CN¥125.8B).


Debt to Equity History and Analysis

Debt Level: 1919's debt to equity ratio (159.3%) is considered high.

Reducing Debt: 1919's debt to equity ratio has reduced from 173.3% to 159.3% over the past 5 years.


Balance Sheet

Inventory Level: 1919 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1919's debt is not covered by short term assets (assets are 0.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 1919 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 1919 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.4%industryaverage3.6%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1919's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1919's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1919's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1919's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1919 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1919's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Zhijian Yang (54yo)

0.5yrs

Tenure

0

Mr. Zhijian Yang Serves as Chief Executive Officer at Orient Overseas Container Line Limited and serves as its Director since September 2019. He served as Co-Chief Executive Officer of Orient Overseas Cont ...


Leadership Team

NamePositionTenureCompensationOwnership
Haimin Wang
Vice Chairman0.5yrsCN¥2.71mno data
Lirong Xu
Chairman of Board1.5yrsno datano data
Zhijian Yang
GM & Executive Director0.5yrsno data0.00082% CN¥431.6k
Mingwen Zhang
Chief Financial Officer1.6yrsno datano data
Hongwei Xu
Head of the Accounting Department0yrsno datano data
Boming Feng
Executive Director0.3yrsno datano data
Huawei Guo
Company Secretary8.1yrsCN¥1.20mno data

1.0yrs

Average Tenure

51.5yo

Average Age

Experienced Management: 1919's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Haimin Wang
Vice Chairman0.5yrsCN¥2.71mno data
Lirong Xu
Chairman of Board1.5yrsno datano data
Zhijian Yang
GM & Executive Director0.5yrsno data0.00082% CN¥431.6k
Boming Feng
Executive Director0.3yrsno datano data
Dawei Wu
Independent Non-Executive Director2.8yrsCN¥156.00kno data
Siong Seng Teo
Independent Non-Executive Director2.8yrsCN¥453.00k0.0013% CN¥689.5k
Yan Meng
Independent Supervisor8.8yrsCN¥310.00kno data
Jianping Zhang
Independent Supervisor8yrsCN¥313.00kno data
Zhonghui Zhou
Independent Non-Executive Director2.8yrsCN¥160.00kno data
Liang-Yee Yang
Independent Non-Executive Director5.8yrsCN¥460.00kno data

2.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: 1919's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 2.4%.


Top Shareholders

Company Information

COSCO SHIPPING Holdings Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: COSCO SHIPPING Holdings Co., Ltd.
  • Ticker: 1919
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: HK$52.630b
  • Shares outstanding: 12.26b
  • Website: https://hold.coscoshipping.com

Number of Employees


Location

  • COSCO SHIPPING Holdings Co., Ltd.
  • No. 658 Dong Da Ming Road
  • 8th Floor
  • Shanghai
  • 200080
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1919SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJun 2005
C6GDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJun 2005
CICO.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDJun 2005
1919SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJun 2005
1919SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJun 2005
601919SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJun 2007
601919XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJun 2007
CICO.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

COSCO SHIPPING Holdings Co., Ltd., an investment holding company, engages in the container shipping, container terminals, and other businesses worldwide. The company operates Container Shipping and Related Business, Container Terminal and Related Business, and Corporate and Other Operations segments. It offers container transportation, container stack, cargo storage, shipping agency, freight forwarding and transportation, logistics, vessel chartering, marine, document, vessel management and manning, liner agency, vessel owning, and other international sea transportation services. The company also provides technology services and solutions, as well as management and finance services; and designs and manufactures computer software. As of December 31, 2018, it operated a fleet of 477 container vessels with a total shipping capacity of 2,758,813 TEU. The company was formerly known as China COSCO Holdings Company Limited and changed its name to COSCO SHIPPING Holdings Co., Ltd. in November 2016. COSCO SHIPPING Holdings Co., Ltd. was founded in 2005 and is based in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 12:50
End of Day Share Price2020/02/28 00:00
Earnings2019/09/30
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.