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

• Market Cap: HK$874.51M
• Dividend Yield: 6.41%
• Average Volume (3M): 339.95K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.38
• 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: 251,850
• 30 Day Avg. Volume: 339,950
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 29.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: HK$1.00 ▲(28.21% Upside)

Chu Kong Shipping Enterprises demonstrates a stable financial foundation with low leverage and solid equity, which is a significant strength. However, challenges in cash flow generation and fluctuating profitability margins are notable risks. The stock's technical indicators show a positive price trend but lack strong momentum. The valuation is attractive with a reasonable P/E ratio and high dividend yield, appealing to income investors.

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 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 maintains a stable financial position with a solid equity base and low leverage, which is 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	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: Negative
• Last Price: 0.78
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 0.78 is below the 20-day moving average (MA) of 0.78, below the 50-day MA of 0.79, and above the 200-day MA of 0.75, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.83 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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	8.77B	10.85	9.01%	9.11%	9.62%	25.18%
6117	72 Outperform	1.25B	6.85	7.10%	4.34%	-13.14%	-22.67%
0560	70 Outperform	HK$874.51M	11.42	2.49%	6.41%	-2.46%	-37.63%
3369	69 Neutral	20.13B	8.63	0.00%	3.62%	-1.37%	-5.58%
3382	66 Neutral	4.49B	7.28	0.00%	6.14%	-0.49%	-8.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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

Chu Kong Shipping Reports Resilient Interim Results Amid Global Challenges

Chu Kong Shipping Enterprises reported its interim results for the first half of 2025, highlighting challenges such as global trade frictions and a sluggish maritime industry in Hong Kong. Despite these challenges, the company proactively explored market opportunities, enhancing its market share and influence through strategic initiatives. These included expanding engineering logistics, optimizing port terminal layouts, and launching new passenger transportation products. The company also strengthened collaborations to boost its logistics segment, resulting in increased container and break-bulk cargo handling volumes, which drove solid operating performance.

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 Interim Dividend for 2025

Chu Kong Shipping Enterprises (Group) Co. Ltd. has announced an interim cash dividend of HKD 0.01 per share for the six months ending June 30, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, potentially impacting its financial performance and market perception positively.

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 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.