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

Fundamentals

Fair value with acceptable 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


Market Performance


7 Day Return

-2.2%

2866

0.08%

HK Shipping

0.9%

HK Market


1 Year Return

7.1%

2866

1.8%

HK Shipping

0.6%

HK Market

Return vs Industry: 2866 exceeded the Hong Kong Shipping industry which returned 1.8% over the past year.

Return vs Market: 2866 exceeded the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

2866IndustryMarket
7 Day-2.2%0.08%0.9%
30 Day-2.2%-0.4%0.4%
90 Day-9.1%-6.2%-5.5%
1 Year11.3%7.1%3.9%1.8%4.2%0.6%
3 Year-44.7%-46.7%3.9%0.5%15.5%3.9%
5 Year-56.3%-57.9%-17.7%-23.2%19.9%-0.1%

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?

4.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 2866 (HK$0.9) is trading above our estimate of fair value (HK$0.16)

Significantly Undervalued: 2866 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2866 is good value based on its PE Ratio (4.8x) compared to the Shipping industry average (13.6x).

PE vs Market: 2866 is good value based on its PE Ratio (4.8x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low 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 (0.8x).


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?

-2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2866's earnings are forecast to decline over the next 3 years (-2.5% per year).

Earnings vs Market: 2866's earnings are forecast to decline over the next 3 years (-2.5% per year).

High Growth Earnings: 2866's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 2866's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 2866's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 2866's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

32.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2866 has become profitable over the past 5 years, growing earnings by 32.2% per year.

Accelerating Growth: 2866's earnings growth over the past year (167.3%) exceeds its 5-year average (32.2% per year).

Earnings vs Industry: 2866 earnings growth over the past year (167.3%) exceeded the Shipping industry 7.4%.


Return on Equity

High ROE: 2866's Return on Equity (8.3%) is considered low.


Return on Assets

ROA vs Industry: 2866's Return on Assets is below or equal to the Shipping industry average last year.


Return on Capital Employed

ROCE Improving: 2866's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is COSCO SHIPPING Development's financial position?


Financial Position Analysis

Short Term Liabilities: 2866's short term assets (CN¥31.2B) do not cover its short term liabilities (CN¥48.6B)

Long Term Liabilities: 2866's short term assets (31.2B) do not cover its long term liabilities (70.6B)


Debt to Equity History and Analysis

Debt Level: 2866's debt to equity ratio (457.6%) is considered high

Reducing Debt: 2866's debt to equity ratio has increased from 90.1% to 457.6% over the past 5 years.

Debt Coverage: 2866's debt is not well covered by operating cash flow (7.2%).

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


Balance Sheet

Inventory Level: 2866 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2866's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

4.05%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%2.3%markettop25%6.3%industryaverage3.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 2866's dividend (4.05%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 2866's dividend (4.05%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

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 low payout ratio (19.6%), 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

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

3.5yrs

Average management tenure


CEO

Daxiong Wang (59yo)

3.4yrs

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 ($USD370.82K) is about average for companies of similar size in the Hong Kong market ($USD496.07K).

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


Management Age and Tenure

3.5yrs

Average Tenure

48.5yo

Average Age

Experienced Management: 2866's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 2866's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Daxiong Wang (59yo)

    CEO & Chairman

    • Tenure: 3.4yrs
    • Compensation: CN¥2.63m
  • Hui Xu (57yo)

    Deputy GM & Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥2.46m
  • Chong Liu (49yo)

    GM & Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥2.45m
  • Zhen Yu (42yo)

    Company Secretary

    • Tenure: 2.5yrs
    • Compensation: CN¥751.00k
  • Dong Ming (48yo)

    Deputy General Manager

    • Tenure: 3.6yrs
  • Feng Lin (44yo)

    Chief Accountant

    • Tenure: 1.1yrs

Board Members

  • Daxiong Wang (59yo)

    CEO & Chairman

    • Tenure: 3.4yrs
    • Compensation: CN¥2.63m
  • Hui Xu (57yo)

    Deputy GM & Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥2.46m
  • Graeme Allan Jack (69yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥300.00k
  • Chong Liu (49yo)

    GM & Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥2.45m
  • Weihua Zhang (58yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: CN¥150.00k
  • Chi Hai (65yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥300.00k
  • Hongjun Ye (56yo)

    Chairman of Supervisors

    • Tenure: 0yrs
  • Jianzhong Lu (65yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥138.00k
  • Hongping Cai (65yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥300.00k
  • Boming Feng (50yo)

    Non-Executive Director

    • Tenure: 0yrs

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$25.570b
  • 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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:38
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.