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COSCO SHIPPING Energy Transportation Co Ltd Class H (HK:1138)
:1138

COSCO SHIPPING Energy Transportation Co (1138) AI Stock Analysis

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HK

COSCO SHIPPING Energy Transportation Co

(OTC:1138)

Rating:75Outperform
Price Target:
HK$7.50
▲(15.21%Upside)
The overall stock score of 75 reflects strong financial performance, particularly in profitability and leverage. The valuation is attractive with a low P/E ratio and high dividend yield, making it appealing for value and income-focused investors. Technical analysis supports a positive outlook, although momentum indicators suggest caution as the stock approaches overbought territory.
Positive Factors
Cost Efficiency
CSET enjoys cost advantages through centralized fuel procurement and preferential port rates.
LNG Growth
The company's growing LNG business aligns with China's rising LNG demand, positioning it well for future growth as China is set to become the world’s largest LNG importer.
Market Position
CSET dominates China’s coastal crude transportation market, benefiting from China’s status as the world’s largest crude importer.
Negative Factors
Economic Risks
Key risks for CSET include an economic recession or weaker-than-expected crude oil import demand from China, which could dampen VLCC demand.

COSCO SHIPPING Energy Transportation Co (1138) vs. iShares MSCI Hong Kong ETF (EWH)

COSCO SHIPPING Energy Transportation Co Business Overview & Revenue Model

Company DescriptionCOSCO SHIPPING Energy Transportation Co., Ltd., an investment holding company, engages in the shipment of oil, liquefied natural gas (LNG), and chemicals along the coast of the People's Republic of China and internationally. It operates in Oil Shipment, LNG, and Others segments. The company also engages in the chartering of vessels; shipment of liquefied petroleum gas; and provision of shipping agency services. As of December 31, 2021, it owned 166 oil tankers with a total capacity of 25.24 million deadweight tons (DWT), including 154 self-owned oil tankers with a capacity of 21.86 million DWT, 12 chartered-in oil tankers with a capacity of 3.38 million DWT, and 2 oil tankers with a capacity of 0.369 million DWT; and 47 jointly-invested LNG vessels, which includes 38 LNG vessels in operation with an aggregate capacity of 6.42 million cubic meters and 9 LNG vessels under construction with an aggregate capacity of 1.56 cubic meters. The company was formerly known as China Shipping Development Company Limited and changed its name to COSCO SHIPPING Energy Transportation Co., Ltd. in October 2016. COSCO SHIPPING Energy Transportation Co., Ltd. was founded in 1994 and is based in Shanghai, the People's Republic of China.
How the Company Makes MoneyCOSCO SHIPPING Energy Transportation Co. generates revenue primarily through its shipping services, focusing on the transportation of crude oil and liquefied natural gas (LNG). The company's core revenue streams include long-term contracts with major oil and gas companies for the chartering of its fleet of tankers. These contracts often provide stable and predictable income. Additionally, the company may engage in spot market operations to optimize fleet utilization and maximize earnings. Significant partnerships with global energy firms and strategic positioning in key shipping routes contribute to its financial performance. The company also benefits from economies of scale due to its extensive fleet and operational efficiencies.

COSCO SHIPPING Energy Transportation Co Financial Statement Overview

Summary
COSCO SHIPPING Energy Transportation Co demonstrates strong financial health and growth potential with robust profitability and stable leverage. Revenue and profit margins are commendable, though the significant drop in free cash flow growth poses a risk.
Income Statement
82
Very Positive
The company shows strong revenue growth with a 6.07% increase in 2024 compared to 2023. Gross profit and net profit margins are healthy at 27.24% and 17.37%, respectively, for 2024. The EBIT margin is robust at 23.07%, and EBITDA margin is strong at 35.99%. Overall, the income statement reflects solid profitability and growth trends.
Balance Sheet
75
Positive
The debt-to-equity ratio improved to 0.94 from 0.86, indicating manageable leverage. The return on equity (ROE) is commendable at 11.25%, reflecting effective equity utilization. The equity ratio stands at 44.26%, showing a sound capital structure. The balance sheet is stable with a cautious approach to leverage.
Cash Flow
68
Positive
Operating cash flow to net income ratio stands strong at 2.14, indicating efficient cash generation relative to net income. However, free cash flow growth is negative at -75.18%, showing a sharp decline from the previous year. Despite strong operational cash flows, the reduction in free cash flow is a concern.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue23.24B21.91B18.66B12.70B16.38B
Gross Profit6.33B6.50B3.46B929.09M4.76B
EBITDA8.37B9.39B6.61B-884.09M6.99B
Net Income4.04B3.35B1.46B2.38B
Balance Sheet
Total Assets81.04B72.08B68.25B59.39B65.96B
Cash, Cash Equivalents and Short-Term Investments5.66B5.63B4.24B3.52B4.87B
Total Debt33.71B29.71B29.27B24.55B25.06B
Total Liabilities42.06B34.98B34.68B29.47B30.36B
Stockholders Equity35.87B34.39B31.57B28.59B34.62B
Cash Flow
Free Cash Flow749.93M3.02B468.51M1.56B
Operating Cash Flow8.63B8.66B4.21B3.39B7.07B
Investing Cash Flow-8.76B-4.60B
Financing Cash Flow-102.21M-2.73B1.52B

COSCO SHIPPING Energy Transportation Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price6.51
Price Trends
50DMA
6.25
Positive
100DMA
6.44
Positive
200DMA
6.78
Negative
Market Momentum
MACD
0.15
Positive
RSI
49.45
Neutral
STOCH
4.97
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1138, the sentiment is Neutral. The current price of 6.51 is below the 20-day moving average (MA) of 6.56, above the 50-day MA of 6.25, and below the 200-day MA of 6.78, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 49.45 is Neutral, neither overbought nor oversold. The STOCH value of 4.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1138.

COSCO SHIPPING Energy Transportation Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$47.72B7.179.73%9.50%3.41%
68
Neutral
CHF7.02B25.5616.28%2.85%-2.63%-20.30%
$31.55B3.5824.28%16.87%
$3.84B8.665.72%7.74%
$2.58B5.875.64%6.94%
$11.22B4.3721.08%7.74%
$1.29B10.227.27%7.11%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1138
COSCO SHIPPING Energy Transportation Co
6.51
-2.88
-30.63%
CICOF
COSCO SHIPPING Holdings Co
1.62
0.09
5.88%
CITAF
COSCO SHIPPING Development Co
0.15
0.02
15.38%
CSPKF
COSCO SHIPPING Ports
0.53
-0.12
-18.46%
OROVF
Orient Overseas (International)
17.05
2.76
19.31%
PCFBF
Pacific Basin Shipping
0.26
-0.05
-16.13%

COSCO SHIPPING Energy Transportation Co Corporate Events

COSCO SHIPPING Energy Transportation Announces 2025 AGM and Key Resolutions
Jun 6, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for June 30, 2025, in Shanghai, where several key resolutions will be considered. These include the approval of the 2024 annual report and financial statements, a final dividend distribution, and the remuneration for directors and supervisors. The company also plans to reappoint its auditors and authorize liability insurance for its board and management. This AGM is significant for stakeholders as it outlines the company’s financial health, governance practices, and strategic plans for the coming year.

The most recent analyst rating on (HK:1138) stock is a Buy with a HK$11.10 price target. To see the full list of analyst forecasts on COSCO SHIPPING Energy Transportation Co stock, see the HK:1138 Stock Forecast page.

COSCO SHIPPING Energy Announces Final Dividend for 2024
Jun 6, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. has announced a final cash dividend of RMB 0.21 per share for the financial year ending December 31, 2024. The announcement includes details on the approval date, ex-dividend date, and payment date, as well as information on withholding tax arrangements for different types of shareholders. This dividend declaration reflects the company’s ongoing commitment to returning value to its shareholders and may impact investor perceptions and the company’s market positioning.

The most recent analyst rating on (HK:1138) stock is a Buy with a HK$9.60 price target. To see the full list of analyst forecasts on COSCO SHIPPING Energy Transportation Co stock, see the HK:1138 Stock Forecast page.

COSCO SHIPPING Proposes Guarantees to Boost Subsidiary Financing
Jun 5, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. announced a proposal to provide guarantees for its wholly-owned subsidiaries, subject to shareholder approval at the upcoming AGM. The guarantees aim to reduce financing costs and improve the efficiency of obtaining financing, which is expected to benefit the company and its shareholders by enhancing operational capabilities and financial stability.

The most recent analyst rating on (HK:1138) stock is a Buy with a HK$11.10 price target. To see the full list of analyst forecasts on COSCO SHIPPING Energy Transportation Co stock, see the HK:1138 Stock Forecast page.

COSCO SHIPPING Energy Plans RMB5 Billion Mid-Term Notes Issuance
Jun 5, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. announced its plan to register and issue mid-term notes worth up to RMB5 billion. The issuance, subject to approval by NAFMII, aims to address the company’s funding needs, including debt repayment and capital investments. The notes will be issued in multiple tranches, with interest rates determined by market conditions, targeting institutional investors. This strategic financial move is expected to enhance the company’s operational capabilities and market positioning.

The most recent analyst rating on (HK:1138) stock is a Buy with a HK$9.60 price target. To see the full list of analyst forecasts on COSCO SHIPPING Energy Transportation Co stock, see the HK:1138 Stock Forecast page.

COSCO SHIPPING Announces Forfeiture of Unclaimed Dividends
May 20, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. announced the forfeiture of unclaimed dividends from the years 2014 to 2017, which will revert to the company if not claimed by June 20, 2025. This move underscores the company’s adherence to its articles of association and relevant PRC laws, potentially impacting shareholders who have yet to claim their dividends.

The most recent analyst rating on (HK:1138) stock is a Buy with a HK$11.10 price target. To see the full list of analyst forecasts on COSCO SHIPPING Energy Transportation Co stock, see the HK:1138 Stock Forecast page.

COSCO SHIPPING Energy Transportation Reports Decline in Q1 2025 Financials
Apr 29, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. has released its unaudited first quarterly report for 2025, showing a decrease in revenue and net profit compared to the same period in 2024. The company reported a 4.01% decrease in revenue and a significant 43.31% drop in net profit attributable to shareholders, reflecting challenging market conditions. The report indicates a decrease in net cash flow from operating activities by 29.96%, and a decline in basic and diluted earnings per share by 43.33%. These financial results suggest potential challenges for the company in maintaining its market position and profitability.

COSCO SHIPPING Energy Proposes New Non-Executive Director Appointment
Apr 29, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. has announced the proposed appointment of Ms. ZHOU Chongyi as a non-executive director. Ms. ZHOU brings extensive experience in financial management and accounting, having held significant roles within the China COSCO SHIPPING Corporation Limited. Her appointment is subject to shareholder approval and she will not receive remuneration as a non-executive director. This move is likely to strengthen the company’s board with her expertise, potentially enhancing its strategic financial oversight.

COSCO SHIPPING Energy Schedules Board Meeting for Quarterly Results
Apr 17, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. has announced a board meeting scheduled for April 29, 2025, to consider and approve the unaudited first quarterly results for the period ending March 31, 2025. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the upcoming quarters.

COSCO SHIPPING Energy Transportation Announces EGM and H Shares Class Meeting Results
Apr 11, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. announced that all resolutions were passed at their Extraordinary General Meeting (EGM) and H Shares Class Meeting. The meetings, held on April 11, 2025, saw participation from shareholders and proxies, with a significant number of shares carrying voting rights. The approval of these resolutions is expected to impact the company’s operations, particularly in terms of proposed share issuances and shipbuilding contracts, potentially influencing its market positioning and stakeholder interests.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025