SEHK:2343

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Pacific Basin Shipping Limited, an investment holding company, provides dry bulk shipping services worldwide. More Details


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Pacific Basin Shipping's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2343's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.8%

2343

0.7%

HK Shipping

-0.6%

HK Market


1 Year Return

-24.8%

2343

26.3%

HK Shipping

0.9%

HK Market

Return vs Industry: 2343 underperformed the Hong Kong Shipping industry which returned 26.3% over the past year.

Return vs Market: 2343 underperformed the Hong Kong Market which returned 0.9% over the past year.


Shareholder returns

2343IndustryMarket
7 Day-0.8%0.7%-0.6%
30 Day9.7%9.5%0.02%
90 Day27.8%34.8%-1.7%
1 Year-23.3%-24.8%36.6%26.3%5.1%0.9%
3 Year-28.4%-32.2%-0.8%-12.2%-6.1%-16.3%
5 Year-22.0%-46.3%65.4%19.8%14.1%-5.3%

Price Volatility Vs. Market

How volatile is Pacific Basin Shipping's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pacific Basin Shipping 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: 2343 (HK$1.24) is trading below our estimate of fair value (HK$4.41)

Significantly Below Fair Value: 2343 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2343 is unprofitable, so we can't compare its PE Ratio to the HK Shipping industry average.

PE vs Market: 2343 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2343's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2343's PB Ratio (0.7x) is in line with the HK Shipping industry average.


Next Steps

Future Growth

How is Pacific Basin Shipping forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

105.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2343 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: 2343 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 2343's is expected to become profitable in the next 3 years.

Revenue vs Market: 2343's revenue (7.4% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 2343'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: 2343's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Pacific Basin Shipping performed over the past 5 years?

27.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2343 is currently unprofitable.

Growing Profit Margin: 2343 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2343 is unprofitable, but has reduced losses over the past 5 years at a rate of 27.8% per year.

Accelerating Growth: Unable to compare 2343's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2343 is unprofitable, making it difficult to compare its past year earnings growth to the Shipping industry (-5%).


Return on Equity

High ROE: 2343 has a negative Return on Equity (-19.68%), as it is currently unprofitable.


Next Steps

Financial Health

How is Pacific Basin Shipping's financial position?


Financial Position Analysis

Short Term Liabilities: 2343's short term assets ($489.5M) exceed its short term liabilities ($345.9M).

Long Term Liabilities: 2343's short term assets ($489.5M) do not cover its long term liabilities ($930.5M).


Debt to Equity History and Analysis

Debt Level: 2343's debt to equity ratio (98.7%) is considered high.

Reducing Debt: 2343's debt to equity ratio has increased from 89.6% to 98.7% over the past 5 years.


Balance Sheet


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: Whilst unprofitable 2343 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 2343 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 46.8% per year.


Next Steps

Dividend

What is Pacific Basin Shipping current dividend yield, its reliability and sustainability?

1.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2343's dividend (1.88%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 2343's dividend (1.88%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.83%).


Stability and Growth of Payments

Stable Dividend: 2343's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2343's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 2343 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: 2343's dividends in 3 years are forecast to be well covered by earnings (49.6% payout ratio).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Mats Berglund (57 yo)

8.33yrs

Tenure

US$1,948,000

Compensation

Mr. Mats Henrik Berglund has been the Chief Executive Officer of Pacific Basin Shipping Ltd. since June 1, 2012. Mr. Berglund is working as a Board of Director at Ardmore Shipping Corp from September 27, 2 ...


CEO Compensation Analysis

Compensation vs Market: Mats's total compensation ($USD1.95M) is above average for companies of similar size in the Hong Kong market ($USD505.41K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Turnbull
Executive Chairman12.75yrsUS$702.00k0.21%
$ 11.9m
Mats Berglund
CEO & Executive Director8.33yrsUS$1.95m0.34%
$ 19.1m
Peter Schulz
CFO & Executive Director2.25yrsUS$1.05m0.12%
$ 7.0m
Suresh Prabhakar
Director of Operationsno datano datano data
P. Subbiah
Director of Human Resources & Administrationno datano datano data
Emily Lau
General Manager of Investor Relations3.75yrsno datano data
Vivien Shum
Director of Insurance & Legalno datano datano data
Daigoro Oyama
Director of Sale & Purchase3.75yrsno datano data
Vergara Hernan
Chief Engineer Columbia Riverno datano datano data
Ben Lee
President of Pacific Basin Shipping Consulting Ltd - Shanghai16.08yrsno datano data
Kit Mok
Company Secretary8.25yrsno datano data
Jay De Silva
Director of Treasury2.58yrsno datano data

6.0yrs

Average Tenure

63yo

Average Age

Experienced Management: 2343's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Turnbull
Executive Chairman12.75yrsUS$702.00k0.21%
$ 11.9m
Mats Berglund
CEO & Executive Director8.33yrsUS$1.95m0.34%
$ 19.1m
Peter Schulz
CFO & Executive Director2.25yrsUS$1.05m0.12%
$ 7.0m
Alasdair George Morrison
Independent Non-Executive Director12.75yrsUS$100.00kno data
Patrick Blackwell Paul
Independent Non-Executive Director16.58yrsUS$113.00k0.0081%
$ 455.7k
Robert Charles Nicholson
Independent Non-Executive Director16.58yrsUS$106.00kno data
Kirsi Kyllikki Tikka
Independent Non-Executive Director1.08yrsUS$27.00kno data
Irene Basili
Independent Non-Executive Director6.42yrsUS$100.00kno data
Stanley Ryan
Independent Non-Executive Director4.25yrsUS$100.00kno data

8.3yrs

Average Tenure

63yo

Average Age

Experienced Board: 2343's board of directors are considered experienced (8.3 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Pacific Basin Shipping Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pacific Basin Shipping Limited
  • Ticker: 2343
  • Exchange: SEHK
  • Founded: 1987
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: HK$5.592b
  • Shares outstanding: 4.66b
  • Website: https://www.pacificbasin.com

Number of Employees


Location

  • Pacific Basin Shipping Limited
  • One Island South
  • 31st Floor
  • Wong Chuk Hang
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCFB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2004
2343SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2004
OYDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2004
2343SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2004
2343SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2004
PCFB.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 2008

Biography

Pacific Basin Shipping Limited, an investment holding company, provides dry bulk shipping services worldwide. As of February 29, 2020, the company had a fleet of 235 ships, including 139 Handysize vessels ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 12:38
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.