COSCO SHIPPING International (Hong Kong) Co (0517) AI Stock Analysis

• Market Cap: HK$8.41B
• Dividend Yield: 10.99%
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.26
• Revenue Growth: 8.54%
• EPS Growth: 20.14%
• Country: HK
• Employees: 808
• Sector: Industrials
• Sector Strength: 90
• Industry: Marine Shipping
• EPS (TTM): 0.48
• Shares Outstanding: 1,465,971,400
• 10 Day Avg. Volume: 1,960,644
• 30 Day Avg. Volume: 1,791,508
• PEG Ratio: 1.31
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 430.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$5.97
• Price Target Upside: 3.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: HK$6.50 ▲(12.26%Upside)

The overall stock score is primarily driven by strong financial performance and attractive valuation. However, technical indicators suggest a potential for a price correction due to overbought conditions. The company's robust balance sheet and high dividend yield provide a solid foundation, but cash flow concerns need addressing.

COSCO SHIPPING International (Hong Kong) Co Business Overview & Revenue Model

Company Description

COSCO SHIPPING International (Hong Kong) Co., Ltd. (0517) is a leading integrated logistics and shipping services company based in Hong Kong. The company operates within the shipping and logistics sector, providing a wide range of services, including shipping agency, freight forwarding, container leasing, ship trading agency, marine insurance brokerage, and supply chain management. As a subsidiary of China COSCO Shipping Corporation Limited, it leverages its parent company's extensive global network to offer comprehensive maritime services to its clients.

How the Company Makes Money

COSCO SHIPPING International (Hong Kong) Co., Ltd. generates revenue through several key streams, primarily from its shipping agency services, which involve acting as an intermediary between shipping lines and port authorities, ensuring smooth operations at ports. Additionally, the company earns money through freight forwarding, facilitating the transportation of goods across various modes, and container leasing, where it provides containers for rent to shipping companies. The ship trading agency segment contributes revenue by facilitating the buying and selling of vessels. Furthermore, marine insurance brokerage services generate income by providing insurance solutions for maritime operations. The company's strong ties with its parent company, China COSCO Shipping Corporation Limited, enhance its capabilities and expand its market reach, further supporting its revenue generation.

COSCO SHIPPING International (Hong Kong) Co Financial Statement Overview

Summary

COSCO SHIPPING demonstrates strong profitability and a robust balance sheet with low debt levels and high equity. However, revenue volatility and lack of cash flow data for 2024 raise concerns. Improvement in operational efficiency and consistent cash flow generation are needed.

Income Statement

The company shows a strong gross profit margin of 23.0% for 2024 and a net profit margin of 19.6%, highlighting its profitability. However, revenue growth has been inconsistent, with a decrease of 8.5% from 2022 to 2023, followed by an increase of 8.5% from 2023 to 2024. The EBIT and EBITDA margins are moderate at 5.3% and 6.8%, respectively, indicating room for operational efficiency improvements.

Balance Sheet

COSCO SHIPPING has a solid financial position with a low debt-to-equity ratio of 0.002 for 2024, indicating low leverage. The equity ratio is high at 84.3%, reflecting a stable balance sheet with significant shareholder equity. The return on equity (ROE) at 9.0% shows a decent return for shareholders.

Cash Flow

The company’s cash flow situation is mixed. The operating cash flow to net income ratio is unavailable due to zero reported cash flow for 2024, which raises concerns about cash generation. Previously, free cash flow showed growth from 2022 to 2023. However, the lack of reported cash flow for 2024 makes it difficult to assess the current cash flow health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.63B	3.34B	3.96B	4.53B	3.44B
Gross Profit	835.78M	648.67M	643.86M	754.30M	610.50M
EBITDA	247.40M	440.01M	330.96M	377.55M	307.33M
Net Income	709.21M	593.67M	347.06M	288.34M	338.52M
Balance Sheet
Total Assets	9.33B	9.21B	9.23B	9.74B	9.94B
Cash, Cash Equivalents and Short-Term Investments	5.94B	6.26B	5.93B	6.22B	6.52B
Total Debt	15.60M	17.61M	15.91M	52.29M	100.13M
Total Liabilities	1.12B	1.02B	1.11B	1.35B	1.51B
Stockholders Equity	7.87B	7.84B	7.80B	8.06B	8.11B
Cash Flow
Free Cash Flow	51.19M	515.37M	159.19M	248.38M	446.45M
Operating Cash Flow	67.81M	523.12M	169.66M	262.80M	457.63M
Investing Cash Flow	3.10B	941.73M	9.66M	217.87M	271.78M
Financing Cash Flow	-661.18M	-535.14M	-479.65M	-452.00M	-242.05M

COSCO SHIPPING International (Hong Kong) Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0517, the sentiment is Positive. The current price of 5.79 is above the 20-day moving average (MA) of 5.65, above the 50-day MA of 5.15, and above the 200-day MA of 4.39, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 67.11 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0517.

COSCO SHIPPING International (Hong Kong) Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1919	84 Outperform	$250.63B	4.13	24.28%	0.88%	30.58%	―
0517	75 Outperform	HK$8.41B	11.86	9.01%	10.99%	8.54%	20.14%
1138	75 Outperform	$46.54B	7.00	9.73%	2.05%	3.41%	―
0144	74 Outperform	$62.72B	7.92	7.67%	6.05%	3.14%	23.12%
1199	69 Neutral	$20.69B	7.64	5.64%	1.11%	5.93%	-3.64%
2866	62 Neutral	HK$30.26B	9.18	5.72%	3.27%	74.12%	11.54%
Sector *	58 Neutral	HK$14.28B	4.69	-3.01%	5.60%	3.67%	-54.16%

COSCO SHIPPING International (Hong Kong) Co Corporate Events

COSCO SHIPPING International Clarifies Related Party Transactions in 2024 Annual Report

COSCO SHIPPING International (Hong Kong) Co., Ltd. has issued a supplemental announcement to its 2024 annual report, providing additional information regarding its related party transactions. The company clarified that certain transactions, including the sale of coatings and marine equipment, did not constitute connected transactions under the Listing Rules, while other transactions were either exempt or non-exempt connected transactions. This announcement ensures compliance with Chapter 14A of the Listing Rules and does not alter any other information in the annual report.

COSCO SHIPPING International Announces AGM Resolutions and Auditor Change

COSCO SHIPPING International (Hong Kong) Co., Ltd. announced the successful passing of all resolutions at its 2025 Annual General Meeting, including the re-election of several directors and the appointment of SHINEWING (HK) CPA Limited as the new auditor. The resolutions passed are expected to strengthen the company’s governance and operational framework, potentially impacting its strategic direction and stakeholder confidence positively.

COSCO SHIPPING International Announces AGM with Key Financial Resolutions

COSCO SHIPPING International (Hong Kong) Co., Ltd. has announced its upcoming annual general meeting scheduled for May 30, 2025. Key agenda items include the consideration of audited financial statements for 2024, the declaration of a final dividend, the re-election of several directors, and the appointment of SHINEWING (HK) CPA Limited as the auditor. Additionally, the meeting will address resolutions regarding the repurchase of shares and the issuance of additional shares, indicating strategic financial maneuvers aimed at enhancing shareholder value.