SEHK:2866

Stock Analysis Report

COSCO SHIPPING Development

Executive Summary

COSCO SHIPPING Development Co., Ltd., together with its subsidiaries, provides vessel chartering and container leasing services.


Snowflake Analysis

Undervalued with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2866's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.5%

2866

1.4%

HK Shipping

2.7%

HK Market


1 Year Return

-26.1%

2866

-36.1%

HK Shipping

-19.8%

HK Market

Return vs Industry: 2866 exceeded the Hong Kong Shipping industry which returned -37.5% over the past year.

Return vs Market: 2866 underperformed the Hong Kong Market which returned -21.1% over the past year.


Shareholder returns

2866IndustryMarket
7 Day2.5%1.4%2.7%
30 Day-7.9%-15.4%-7.2%
90 Day-10.9%-25.1%-12.1%
1 Year-23.3%-26.1%-32.1%-36.1%-16.9%-19.8%
3 Year-50.5%-52.3%-30.0%-34.3%0.9%-9.3%
5 Year-76.6%-77.5%-57.4%-60.5%-12.6%-26.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is COSCO SHIPPING Development 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: 2866 (HK$0.82) is trading below our estimate of fair value (HK$2.06)

Significantly Below Fair Value: 2866 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2866 is good value based on its PE Ratio (5.8x) compared to the Shipping industry average (11.6x).

PE vs Market: 2866 is good value based on its PE Ratio (5.8x) compared to the Hong Kong market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2866's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2866 is good value based on its PB Ratio (0.4x) compared to the HK Shipping industry average (0.6x).


Next Steps

Future Growth

How is COSCO SHIPPING Development forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.7%

Forecasted Transportation industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as COSCO SHIPPING Development has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

25.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2866 has a large one-off gain of CN¥785.3M impacting its December 31 2019 financial results.

Growing Profit Margin: 2866's current net profit margins (12.3%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: 2866's earnings have grown significantly by 25% per year over the past 5 years.

Accelerating Growth: 2866's earnings growth over the past year (25.8%) exceeds its 5-year average (25% per year).

Earnings vs Industry: 2866 earnings growth over the past year (25.8%) exceeded the Shipping industry -7.3%.


Return on Equity

High ROE: 2866's Return on Equity (7.2%) is considered low.


Next Steps

Financial Health

How is COSCO SHIPPING Development's financial position?


Financial Position Analysis

Short Term Liabilities: 2866's short term assets (CN¥29.8B) do not cover its short term liabilities (CN¥54.3B).

Long Term Liabilities: 2866's short term assets (CN¥29.8B) do not cover its long term liabilities (CN¥66.0B).


Debt to Equity History and Analysis

Debt Level: 2866's debt to equity ratio (456.4%) is considered high.

Reducing Debt: 2866's debt to equity ratio has increased from 96.2% to 456.4% over the past 5 years.

Debt Coverage: 2866's debt is not well covered by operating cash flow (7.8%).

Interest Coverage: 2866's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Next Steps

Dividend

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

60.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2866's dividend (59.98%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.71%).

High Dividend: 2866's dividend (59.98%) is in the top 25% of dividend payers in the Hong Kong market (7.21%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 2866's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 2866's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.1%), 2866's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Daxiong Wang (59yo)

3.92s

Tenure

CN¥2,626,000

Compensation

Mr. Daxiong Wang has been the Chief Executive Officer and Executive Director of COSCO SHIPPING Development Co., Ltd. (Also known as China Shipping Container Lines Company Limited) since May 2016 and May 10 ...


CEO Compensation Analysis

Compensation vs Market: Daxiong's total compensation ($USD370.26K) is about average for companies of similar size in the Hong Kong market ($USD501.86K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Daxiong Wang
CEO & Chairman3.92yrsCN¥2.63mno data
Hui Xu
Deputy GM & Executive Director3.83yrsCN¥2.46mno data
Chong Liu
GM & Executive Director3.83yrsCN¥2.45mno data
Feng Lin
Chief Accountant1.58yrsno datano data
Dong Ming
Deputy General Manager4.08yrsno datano data
Zhen Yu
Company Secretary3yrsCN¥751.00kno data

4.0yrs

Average Tenure

48.5yo

Average Age

Experienced Management: 2866's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daxiong Wang
CEO & Chairman3.92yrsCN¥2.63mno data
Hui Xu
Deputy GM & Executive Director3.83yrsCN¥2.46mno data
Chong Liu
GM & Executive Director3.83yrsCN¥2.45mno data
Graeme Allan Jack
Independent Non-Executive Director4.83yrsCN¥300.00kno data
Weihua Zhang
Independent Non-Executive Director2.08yrsCN¥150.00kno data
Chi Hai
Independent Non-Executive Director4.92yrsCN¥300.00kno data
Hongjun Ye
Chairman of Supervisorsno datano datano data
Jianzhong Lu
Independent Non-Executive Director2.33yrsCN¥138.00kno data
Hongping Cai
Independent Non-Executive Director3.83yrsCN¥300.00kno data
Boming Feng
Non-Executive Directorno datano datano data

3.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 2866's board of directors are considered experienced (3.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: COSCO SHIPPING Development Co., Ltd.
  • Ticker: 2866
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: HK$20.554b
  • Shares outstanding: 11.53b
  • Website: https://development.coscoshipping.com

Number of Employees


Location

  • COSCO SHIPPING Development Co., Ltd.
  • COSCO SHIPPING Plaza
  • 5299 Binjiang Dadao
  • Shanghai
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CITA.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDJun 2004
2866SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJun 2004
EZ5DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJun 2004
2866SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJun 2004
2866SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJun 2004
601866SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYDec 2007
601866XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYDec 2007

Biography

COSCO SHIPPING Development Co., Ltd., together with its subsidiaries, provides vessel chartering and container leasing services. The company manufactures and sells containers; and offers operating leasing, equity or debt investment, insurance brokerage, and cargo and liner agency services, as well as financial leasing services in the areas of medical services, education, new energy, and construction and industrial equipment. It also offers container management, management, property investment, trading, and commercial factoring services. As of December 31, 2018, the company had a container fleet of 90 vessels with a total capacity of 629,500 TEU; 4 bulk cargo vessels of 64,000 DWT each; approximately 80 bulk cargo vessels, LNG vessels, and heavy crane vessels; and an inventory of containers of approximately 3.80 million TEU. It has operations in Hong Kong, Mainland China, rest of Asia, the United States, Europe, and internationally. The company was formerly known as China Shipping Container Lines Company Limited and changed its name to COSCO SHIPPING Development Co., Ltd. in December 2016. COSCO SHIPPING Development Co., Ltd. was founded in 1997 and is headquartered 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 Analysis2020/04/08 12:49
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
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.