Chu Kong Shipping Enterprises (Group) Co. Ltd. (0560) AI Stock Analysis

• Market Cap: HK$885.72M
• Dividend Yield: 8.52%
• Average Volume (3M): 798.53K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.41
• Revenue Growth: 6.37%
• EPS Growth: 2.65%
• Country: HK
• Employees: 2,147
• Sector: Industrials
• Sector Strength: 83
• Industry: Marine Shipping
• EPS (TTM): 0.04
• Shares Outstanding: 1,121,166,900
• 10 Day Avg. Volume: 290,600
• 30 Day Avg. Volume: 798,533
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$1.01
• Price Target Upside: 28.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: HK$1.00 ▲(28.21% Upside)

Chu Kong Shipping Enterprises receives a solid score driven by its attractive valuation and stable financial position. While the company faces challenges in cash flow generation, its low leverage and strong dividend yield provide a buffer. Technical indicators suggest a neutral market sentiment, with no strong directional trends at present.

Chu Kong Shipping Enterprises (Group) Co. Ltd. Business Overview & Revenue Model

Company Description

Chu Kong Shipping Enterprises (Group) Co. Ltd. (0560) is a prominent logistics and transportation company headquartered in Hong Kong. The company primarily operates in the shipping, cargo handling, and passenger transport sectors, focusing on providing efficient and reliable services across the Pearl River Delta and beyond. Its core offerings include river trade cargo transportation, terminals and warehousing services, and high-speed passenger ferry services.

How the Company Makes Money

Chu Kong Shipping Enterprises generates revenue through a diversified model that includes multiple key streams. The company earns money from its river trade cargo transportation services, which involve the transportation of goods along the Pearl River Delta, leveraging its extensive network of vessels and terminals. It also generates significant income from its port and logistics operations, providing terminal operations, warehousing, and value-added logistics services. Additionally, Chu Kong Shipping taps into the passenger transportation market by operating high-speed ferry services, which cater to both local commuters and tourists in the region. The company's strategic partnerships with local governments and other logistics providers enhance its service offerings and contribute to its revenue growth.

Chu Kong Shipping Enterprises (Group) Co. Ltd. Financial Statement Overview

Summary

Chu Kong Shipping Enterprises demonstrates stable financial stability with a strong equity base and low leverage, which is conducive to long-term sustainability. However, recent cash flow difficulties and fluctuating profitability margins indicate challenges in operational efficiency and cost management, suggesting areas for improvement to enhance cash flow generation.

Income Statement

Chu Kong Shipping Enterprises has demonstrated variable revenue growth over the years, with recent growth of 6.37% from 2023 to 2024. The company maintains a modest gross profit margin of 7.93% and a net profit margin of 4.31% for 2024. EBIT and EBITDA margins are 4.18% and 6.97% respectively, indicating operational efficiency gains. However, the drop in gross profit and EBIT compared to previous years suggests challenges in maintaining cost efficiencies.

Balance Sheet

The company's balance sheet shows a solid equity base with an equity ratio of 57.59% in 2024, reflecting financial stability. The debt-to-equity ratio is low at 0.18, indicating a conservative leverage strategy. Return on equity stands at 3.69%, which is modest but stable. The company's healthy cash reserves provide an additional buffer against potential financial volatility.

Cash Flow

Chu Kong Shipping faces challenges in cash flow generation with operating cash flow turning negative in 2024, a decline from previous positive figures. Free cash flow also decreased significantly to negative territory, indicating potential liquidity challenges. The operating cash flow to net income and free cash flow to net income ratios highlight a decline in cash conversion efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.72B	2.55B	2.90B	2.27B	1.85B
Gross Profit	215.25M	285.47M	254.89M	261.25M	186.13M
EBITDA	189.39M	294.15M	336.06M	295.95M	241.94M
Net Income	117.03M	114.07M	93.49M	44.07M	49.82M
Balance Sheet
Total Assets	5.51B	4.55B	4.57B	4.70B	4.57B
Cash, Cash Equivalents and Short-Term Investments	845.46M	1.04B	1.06B	1.05B	964.11M
Total Debt	580.83M	404.47M	459.12M	553.52M	276.35M
Total Liabilities	1.91B	1.05B	1.07B	1.15B	942.19M
Stockholders Equity	3.17B	3.19B	3.17B	3.23B	3.28B
Cash Flow
Free Cash Flow	-115.02M	172.15M	185.61M	138.95M	-128.34M
Operating Cash Flow	-1.75M	218.81M	304.62M	323.74M	126.18M
Investing Cash Flow	-220.94M	-44.76M	-115.64M	-92.05M	-249.18M
Financing Cash Flow	14.32M	-184.76M	-118.44M	94.02M	-38.46M

Chu Kong Shipping Enterprises (Group) Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.78
• 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:0560, the sentiment is Positive. The current price of 0.78 is below the 20-day moving average (MA) of 0.79, above the 50-day MA of 0.78, and above the 200-day MA of 0.74, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.93 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0560.

Chu Kong Shipping Enterprises (Group) Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6117	77 Outperform	HK$1.58B	7.06	7.33%	3.43%	0.63%	―
0517	75 Outperform	$8.40B	11.84	9.01%	7.35%	8.54%	20.14%
0560	72 Outperform	HK$885.72M	7.57	3.63%	8.52%	6.37%	2.65%
3369	69 Neutral	HK$19.20B	7.58	8.11%	4.10%	-5.25%	-1.12%
3382	66 Neutral	HK$4.55B	6.60	5.03%	6.14%	1.72%	-5.24%
Sector *	58 Neutral	HK$13.23B	4.28	-2.97%	5.82%	2.91%	-48.85%

Chu Kong Shipping Enterprises (Group) Co. Ltd. Corporate Events

Chu Kong Shipping to Review Interim Results and Dividend

Chu Kong Shipping Enterprises (Group) Co. Ltd. has announced a board meeting scheduled for August 28, 2025, to discuss and approve the company’s half-yearly interim report and interim results for the period ending June 30, 2025. The meeting will also consider the payment of an interim dividend, highlighting the company’s ongoing financial and operational assessments.

Chu Kong Shipping Updates on Share Option Scheme in 2024 Annual Report

Chu Kong Shipping Enterprises (Group) Co. Ltd. has issued a supplemental announcement to its 2024 Annual Report, detailing the shares issuable under its Share Option Scheme. The company disclosed that 98,608,000 shares remain issuable, representing approximately 8.8% of the issued shares, with no other changes to the annual report’s information. This announcement provides clarity on the company’s share distribution strategy, which may influence stakeholder perceptions and investment decisions.

Chu Kong Shipping Issues Profit Warning Amid Trade Frictions and Infrastructure Changes

Chu Kong Shipping Enterprises (Group) Co. Ltd. has issued a profit warning, indicating a significant decline in profits for the first half of 2025, with an expected decrease of 55% to 70% compared to the same period last year. This decline is attributed to global trade frictions, particularly the renewed tariff dispute between the United States and China, as well as the opening of the Shenzhen-Zhongshan Link, which has impacted the company’s cargo and passenger transportation volumes. Despite these challenges, the company maintains a healthy cash flow and financial position.

Chu Kong Shipping Updates Nomination Committee Terms

Chu Kong Shipping Enterprises (Group) Co. Ltd. has revised the terms of reference for its Nomination Committee, which is responsible for recommending appointments of directors and senior executives, overseeing board performance evaluations, and developing board diversity policies. This move is expected to enhance the company’s governance structure, ensuring a diverse and effective board, which could positively impact its strategic decision-making and stakeholder relations.

Chu Kong Shipping Successfully Passes All Resolutions at AGM

Chu Kong Shipping Enterprises (Group) Co. Ltd. announced that all proposed resolutions were passed at their Annual General Meeting held on May 22, 2025. The resolutions included adopting financial statements, declaring a final dividend, re-electing directors, and granting mandates for share allotment and repurchase. The successful passing of these resolutions indicates strong shareholder support and positions the company for continued operational and strategic initiatives.