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

• Market Cap: €952.99M
• Dividend Yield: 9.41%
• Average Volume (3M): 731.73K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.40
• Revenue Growth: 6.37%
• EPS Growth: 2.65%
• Country: HK
• Employees: 2,147
• Sector: Industrials
• Sector Strength: 91
• Industry: Marine Shipping
• EPS (TTM): 0.10
• Shares Outstanding: 1,121,166,900
• 10 Day Avg. Volume: 574,000
• 30 Day Avg. Volume: 731,733
• PEG Ratio: -0.80
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -37.29
• 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: €1.01
• Price Target Upside: 18.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: HK$1.00 ▲(17.65%Upside)

Chu Kong Shipping's attractive valuation and stable financial position are the key strengths, offering potential investment opportunities. However, challenges in cash flow generation and overbought technical indicators suggest cautious optimism. Investors should monitor operational efficiency improvements and potential price pullbacks.

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 Enterprises makes money through several key revenue streams. The company earns revenue from its river trade shipping services, where it transports goods between Hong Kong and various ports in the Pearl River Delta region. Additionally, its passenger ferry services, connecting Hong Kong with Macau and other destinations in the region, contribute significantly to its income. Chu Kong Shipping also generates revenue from its logistics and warehousing services, offering integrated solutions that include cargo handling and distribution. The company's strategic location in the Pearl River Delta, one of the world's most dynamic economic areas, along with its extensive network and partnerships with regional port authorities, enhances its ability to capture a steady flow of trade and passenger traffic, thereby contributing to its earnings.

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. The company should focus on enhancing cash flow generation to sustain its growth trajectory and financial health.

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: 0.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.85 is above the 20-day moving average (MA) of 0.79, above the 50-day MA of 0.76, and above the 200-day MA of 0.73, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 66.51 is Neutral, neither overbought nor oversold. The STOCH value of 92.59 is Negative, 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
0560	72 Outperform	€952.99M	8.14	3.63%	9.41%	6.37%	2.65%
Sector *	67 Neutral	£2.82B	10.41	4.69%	3.50%	2.40%	-24.53%
CHDGF		$1.06B	11.69	9.01%	7.62%	―	―
TJIPF		$540.45M	5.47	5.03%	7.43%	―	―
QHD		€2.11B	6.76	8.11%	4.08%	―	―
1719		HK$1.02B	79.73	1.66%	―	―	―
6117	77 Outperform	HK$1.54B	6.91	7.33%	3.50%	0.63%	―

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

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.

Chu Kong Shipping Announces AGM with Key Resolutions

Chu Kong Shipping Enterprises (Group) Co., Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for May 22, 2025, in Hong Kong. Key agenda items include the consideration of audited financial statements, declaration of a final dividend for 2024, re-election of directors, re-appointment of KPMG as auditors, and authorization for directors to manage share capital activities. These resolutions aim to reinforce the company’s governance and financial strategies, potentially impacting its market position and stakeholder interests.