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

• Market Cap: HK$840.88M
• Dividend Yield: 6.67%
• Average Volume (3M): 283.48K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.39
• Revenue Growth: -2.46%
• EPS Growth: -37.63%
• Country: HK
• Employees: 2,147
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 0.02
• Shares Outstanding: 1,121,166,900
• 10 Day Avg. Volume: 241,200
• 30 Day Avg. Volume: 283,483
• PEG Ratio: 0.00
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -7.41
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: HK$1.00 ▲(29.87% Upside)

Chu Kong Shipping Enterprises demonstrates a stable financial position with solid equity and low leverage, which is a significant strength. However, challenges in cash flow generation and fluctuating profitability margins are areas of concern. The technical analysis indicates a stable trend, and the valuation is attractive with a reasonable P/E ratio and high dividend yield.

Positive Factors

Stable Financial Position

A strong equity base and low debt-to-equity ratio indicate financial stability and a conservative leverage strategy, supporting long-term sustainability.

Strategic Partnerships

These partnerships improve operational efficiencies and service offerings, strengthening competitive positioning and supporting revenue stability.

Operational Efficiency Gains

Improved operational efficiency through better margin management can enhance profitability and sustain competitive advantage over time.

Negative Factors

Cash Flow Challenges

Negative operating cash flow indicates potential liquidity challenges, which could strain financial flexibility and affect long-term operations.

Fluctuating Profitability Margins

Inconsistent profitability margins can hinder long-term growth and competitiveness, necessitating improved cost management strategies.

Revenue Growth Concerns

Inconsistent revenue growth may reflect market challenges or operational inefficiencies, impacting long-term revenue potential and market position.

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

Company Description

Chu Kong Shipping Enterprises (Group) Company Limited, an investment holding company, engages in the terminal logistics, waterway passenger transportation, and fuel supply businesses in Hong Kong, Mainland China, and Macau. The company operates through five segments: Cargo Transportation, Cargo Handling and Storage, Passenger Transportation, Fuel supply, and Corporate and Other Businesses. It provides cargo canvassing, feeder transportation, vessel agency, wharf cargo handling, and warehousing and storage services; shipping agency and freight forwarding agency services; container and cargo transportation and towing services; and transshipment, cargo handling, and trucking services. The company is also involved in the operation and management of a river trade cargo terminals; management of ships; operation and management of facilities maintenance services; godown and wharf operations; and tour operation and property holding activities. In addition, it offers diesel and lubricants for passenger ferries and cargo vessels; oil trading and marine bunkering services; and information technology and passenger services, as well as property maintenance services. Further, the company provides agency services; container handling; passenger transportation agency and carrier, logistics, and maintenance services; ferry and charter hire of vessels services; ferry terminal management services; cargo consolidation; and operation of travel agency. The company was incorporated in 1996 and is headquartered in Central, Hong Kong. Chu Kong Shipping Enterprises (Group) Company Limited is a subsidiary of Chu Kong Shipping Enterprises (Holdings) Company Limited.

How the Company Makes Money

Chu Kong Shipping generates revenue primarily through its shipping and logistics services. The company's main revenue streams include freight charges for transporting goods, logistics management fees, and ancillary services such as cargo handling and warehousing. Additionally, the company benefits from long-term contracts with key clients in various sectors, which provide a stable income base. Strategic partnerships with other shipping lines and logistics providers enhance its service offerings and operational efficiencies, contributing to its overall earnings. Economic factors such as trade volumes and shipping rates also significantly influence its revenue potential.

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

Summary

Chu Kong Shipping Enterprises holds a stable financial position with solid equity and low leverage, conducive to long-term sustainability. However, recent cash flow difficulties and fluctuating profitability margins suggest areas for improvement in operational efficiency and cost management.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.64B	2.72B	2.55B	2.90B	2.27B	1.85B
Gross Profit	178.87M	215.25M	285.47M	254.89M	261.25M	186.13M
EBITDA	156.72M	189.39M	294.15M	336.06M	295.95M	241.94M
Net Income	76.57M	117.03M	114.07M	93.49M	44.07M	49.82M
Balance Sheet
Total Assets	5.75B	5.51B	4.55B	4.57B	4.70B	4.57B
Cash, Cash Equivalents and Short-Term Investments	764.17M	845.46M	1.04B	1.06B	1.05B	964.11M
Total Debt	607.53M	580.83M	404.47M	459.12M	553.52M	276.35M
Total Liabilities	2.13B	1.91B	1.05B	1.07B	1.15B	942.19M
Stockholders Equity	3.18B	3.17B	3.19B	3.17B	3.23B	3.28B
Cash Flow
Free Cash Flow	-105.68M	-115.02M	172.15M	185.61M	138.95M	-128.34M
Operating Cash Flow	3.92M	-1.75M	218.81M	304.62M	323.74M	126.18M
Investing Cash Flow	-439.85M	-220.94M	-44.76M	-126.84M	-92.05M	-249.18M
Financing Cash Flow	194.38M	14.32M	-184.76M	-136.39M	86.06M	-38.46M

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

• Technical Analysis Sentiment: Negative
• Last Price: 0.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 0.77 is above the 20-day moving average (MA) of 0.75, above the 50-day MA of 0.76, and above the 200-day MA of 0.76, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.40 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
0517	76 Outperform	HK$9.29B	11.50	10.10%	8.83%	9.62%	25.18%
3369	75 Outperform	HK$21.60B	8.64	8.26%	3.47%	3.31%	2.16%
3382	71 Outperform	HK$4.30B	6.98	4.48%	6.69%	-0.49%	-8.15%
0560	71 Outperform	HK$840.88M	10.98	2.49%	6.67%	-2.46%	-37.63%
6117	67 Neutral	HK$1.16B	6.39	5.82%	4.86%	-13.14%	-22.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1719	62 Neutral	HK$586.52M	50.00	1.52%	―	19.79%	-33.33%

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

Chu Kong Shipping Announces Board Composition and Governance Structure

Chu Kong Shipping Enterprises (Group) Co., Ltd. has announced the composition of its board of directors, highlighting the roles and functions of each member. The board includes executive directors, a non-executive director, and independent non-executive directors, with various members serving on committees such as the Nomination, Executive, Remuneration, and Audit Committees. This announcement underscores the company’s commitment to structured governance and strategic oversight, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (HK:0560) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Chu Kong Shipping Enterprises (Group) Co. Ltd. stock, see the HK:0560 Stock Forecast page.

Chu Kong Shipping Announces Executive Leadership Changes

Chu Kong Shipping Enterprises (Group) Co. Ltd. has announced significant changes in its executive leadership, appointing Mr. Hu Jun as the new executive director, executive deputy general manager, and member of the executive committee, effective November 14, 2025. Mr. Hu, who has over 30 years of experience in shipping logistics and capital operation management, will replace Mr. Liu Wuwei, who is resigning to pursue opportunities with another company. These changes are expected to impact the company’s strategic direction and operational management, potentially influencing its market positioning and stakeholder relationships.

The most recent analyst rating on (HK:0560) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Chu Kong Shipping Enterprises (Group) Co. Ltd. stock, see the HK:0560 Stock Forecast page.

Chu Kong Shipping Revises Annual Caps for Ferry Agreements

Chu Kong Shipping Enterprises (Group) Co. Ltd. announced a revision of the annual caps for its Master Ferry Technical Support Services Agreement and Master Ferries Rental Agreement for the financial years ending in 2025, 2026, and 2027. This revision is necessary as the original caps are insufficient to meet the company’s needs. The transactions are classified as continuing connected transactions under the Listing Rules, requiring compliance with announcement requirements but exempt from independent shareholder approval.

The most recent analyst rating on (HK:0560) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Chu Kong Shipping Enterprises (Group) Co. Ltd. stock, see the HK:0560 Stock Forecast page.