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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:1138

COSCO SHIPPING Energy Transportation Co

(1138)

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Outperform 74 (OpenAI - 5.2)
Rating:74Outperform
Price Target:
HK$13.00
â–²(13.34% Upside)
The score is driven primarily by strong financial performance and profitability with stable leverage, partially tempered by a sharp decline in free cash flow growth. Technically, the stock is in an uptrend above major moving averages, but overbought signals (RSI ~69.7, Stoch ~96.5) add near-term risk. Valuation is supportive with a moderate P/E and a strong dividend yield.
Positive Factors
Strong Profitability and Margins
Sustained high gross and operating margins indicate durable pricing power and operational efficiency in tanker and LNG transport. Robust margins provide recurring cash to fund fleet maintenance, service debt, and support dividends, making earnings more resilient across shipping cycles.
Stable Balance Sheet and Capital Efficiency
A moderate leverage profile with a sub-1.0 debt/equity and sizable equity ratio offers financial flexibility for capital-intensive shipping operations. ROE near double digits signals effective use of equity capital to generate returns, aiding long-term fleet investment capacity and credit resilience.
Parent Group Backing and Modern, Diversified Fleet
Affiliation with COSCO SHIPPING Group provides scale advantages, global commercial networks and potential access to favorable charters and financing. A modern, diversified fleet across VLCCs and LNG carriers reduces single-segment exposure and supports long-term demand capture in energy transport markets.
Negative Factors
Sharp Free Cash Flow Decline
A near-75% drop in free cash flow materially reduces discretionary liquidity for capex, dividends, and debt amortization. Even with strong operating cash conversion, such a sharp FCF fall suggests higher capex or working-capital strain and elevates medium-term funding and allocation risks.
Modest Organic Revenue Growth
Single-digit top-line growth implies limited organic expansion absent fleet additions or higher utilization. Over a multi-month horizon, modest revenue growth constrains scalable earnings upside and may necessitate capital intensity or strategic moves to materially accelerate throughput or diversify services.
Exposure to Oil & Gas Demand and Price Cycles
Business revenue tied to crude, LNG and product flows makes cash generation sensitive to commodity demand and price swings. Structural shifts in energy demand or prolonged weak tanker/LNG utilization can depress rates and utilization, creating persistent volatility in revenues and margins.

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 the transportation of oil and gas products via its fleet of specialized vessels. The company's revenue model is largely driven by long-term charter agreements and spot market contracts with major oil and gas companies, which provide stable income streams. Key revenue streams include freight charges for transporting crude oil and LNG, as well as additional services such as ship management and logistics support. The company also benefits from strategic partnerships with leading energy producers and traders, which enhance its market position and operational efficiency. Factors contributing to its earnings include fluctuations in global oil prices, demand for energy transportation, and the efficiency of its fleet operations.

COSCO SHIPPING Energy Transportation Co Financial Statement Overview

Summary
COSCO SHIPPING Energy Transportation Co demonstrates strong financial health with robust profitability and stable leverage. Revenue and profit margins are commendable, but the significant drop in free cash flow growth poses a risk.
Income Statement
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
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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue23.23B23.24B21.91B18.66B12.70B16.27B
Gross Profit5.24B6.33B6.50B3.46B929.09M4.76B
EBITDA7.39B8.37B9.39B6.61B-884.09M6.99B
Net Income3.30B4.04B3.35B1.46B-4.99B2.38B
Balance Sheet
Total Assets84.41B81.04B72.08B68.25B59.39B65.96B
Cash, Cash Equivalents and Short-Term Investments7.66B5.66B5.63B4.24B3.52B4.87B
Total Debt37.45B33.71B29.71B30.22B25.46B26.03B
Total Liabilities44.60B42.06B34.98B34.68B29.47B30.36B
Stockholders Equity36.70B35.87B35.16B31.57B28.59B34.62B
Cash Flow
Free Cash Flow1.24B749.93M3.02B-238.76M468.51M1.56B
Operating Cash Flow8.00B8.63B8.66B4.21B3.39B7.07B
Investing Cash Flow-5.79B-8.76B-4.60B―-2.64B-4.91B
Financing Cash Flow948.95M-102.21M-2.73B1.52B-2.08B-1.04B

COSCO SHIPPING Energy Transportation Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.47
Price Trends
50DMA
10.23
Positive
100DMA
9.40
Positive
200DMA
7.79
Positive
Market Momentum
MACD
0.14
Negative
RSI
69.65
Neutral
STOCH
96.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1138, the sentiment is Positive. The current price of 11.47 is above the 20-day moving average (MA) of 9.83, above the 50-day MA of 10.23, and above the 200-day MA of 7.79, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 69.65 is Neutral, neither overbought nor oversold. The STOCH value of 96.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1138.

COSCO SHIPPING Energy Transportation Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
HK$249.41B4.0416.39%12.48%30.56%108.49%
78
Outperform
HK$83.74B3.9821.38%12.81%28.91%150.66%
77
Outperform
HK$12.25B16.035.53%2.88%-4.94%22.86%
74
Outperform
HK$72.79B14.118.93%4.76%4.90%6.33%
74
Outperform
HK$23.09B8.035.76%4.97%7.26%6.73%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
49
Neutral
HK$31.18B7.695.45%4.16%29.67%79.82%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1138
COSCO SHIPPING Energy Transportation Co
11.47
4.11
55.93%
HK:1919
COSCO SHIPPING Holdings Co
13.84
3.31
31.50%
HK:2866
COSCO SHIPPING Development Co
1.09
0.13
13.54%
HK:1199
COSCO SHIPPING Ports
5.87
1.68
40.13%
HK:0316
Orient Overseas (International)
126.30
29.33
30.25%
HK:2343
Pacific Basin Shipping
2.48
0.89
55.97%

COSCO SHIPPING Energy Transportation Co Corporate Events

COSCO SHIPPING Energy Calls January 2026 EGM to Approve Major Dual-Fuel Tanker Orders
Jan 8, 2026

COSCO SHIPPING Energy Transportation Co., Ltd. has convened an extraordinary general meeting for 27 January 2026 in Shanghai, where shareholders will vote on approving and ratifying multiple shipbuilding contracts for new energy and product tankers. The resolutions cover contracts for an LNG dual-fuel ethylene carrier, Aframax and LR2 methanol dual-fuel crude and product oil tankers, as well as a series of LR1 and MR product and crude oil tankers to be built by COSCO SHIPPING Heavy Industry yards in Dalian, Yangzhou and Guangdong, with the board seeking authorization to implement all related transactions. These planned additions to the fleet signal a continued push toward dual-fuel and more environmentally advanced vessels, reinforcing the company’s capacity and positioning in energy shipping while potentially enhancing its competitiveness in cleaner marine transport solutions.

The most recent analyst rating on (HK:1138) stock is a Buy with a HK$12.90 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 Delays Dispatch of Circular on New Shipbuilding Contracts
Jan 7, 2026

COSCO SHIPPING Energy Transportation has announced a brief delay in sending to shareholders a circular related to previously disclosed shipbuilding contracts and their associated transactions. The circular, which will include details of the contracts, recommendations from the Independent Board Committee, and advice from the Independent Financial Adviser ahead of an extraordinary general meeting, is now expected to be dispatched no later than 9 January 2026 instead of the initially planned 7 January 2026, due to additional time required to finalize the document and the advisory letter.

The most recent analyst rating on (HK:1138) stock is a Buy with a HK$12.90 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 Revamps Strategy and Risk Oversight Committees
Dec 28, 2025

COSCO SHIPPING Energy Transportation has adjusted the composition of its key board committees, effective 26 December 2025, appointing chairman Ren Yongqiang and several other directors to the Strategy Committee, and confirming a new three-member line-up for the Risk Control and Compliance Management Committee led by independent director Zhao Jinsong. The reshuffle signals a refreshed governance and oversight framework around strategic planning and risk management, which may influence how the company sets long-term business direction and strengthens compliance controls within the energy shipping segment.

The most recent analyst rating on (HK:1138) stock is a Buy with a HK$12.90 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 Sets Out Updated Board Line-Up and Committee Roles
Dec 28, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. has announced the current composition of its board of directors, confirming two executive directors, four non-executive directors and four independent non-executive directors, with Chairman Ren Yongqiang and President Zhu Maijin leading the executive team. The company also detailed the structure and membership of its five board committees—Strategy, Nomination, Remuneration and Appraisal, Audit, and Risk Control and Compliance Management—clarifying committee chairmanships and memberships, a move that enhances transparency in corporate governance and provides investors with greater visibility into oversight responsibilities at the board level.

The most recent analyst rating on (HK:1138) stock is a Buy with a HK$12.90 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 Shareholders Approve All EGM Resolutions and New Non-Executive Director
Dec 23, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. announced that all resolutions proposed at its extraordinary general meeting held in Shanghai on 23 December 2025 were approved by shareholders through a poll, reflecting strong procedural support for the company’s current strategic and operational agenda. Among the resolutions, shareholders ratified the appointment of Ms. Ma Yuanru as a non-executive director for the remainder of the current board term, a move that may influence board oversight and governance as the group continues to manage major charter-party and right-of-use asset arrangements, with controlling shareholder COSCO SHIPPING and its associates abstaining from voting on related-party items in line with listing rules.

The most recent analyst rating on (HK:1138) stock is a Buy with a HK$12.90 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 Updates Board Composition and Committee Roles
Dec 23, 2025

COSCO SHIPPING Energy Transportation has announced the current composition of its board of directors, confirming two executive directors, four non-executive directors and four independent non-executive directors, led by Chairman Ren Yongqiang and President Zhu Maijin. The company has also detailed the allocation of directors across five key board committees—Strategy, Nomination, Remuneration and Appraisal, Audit, and Risk Control and Compliance Management—clarifying chairmanships and memberships, which underscores its focus on corporate governance, risk management and regulatory compliance as it oversees ongoing operations and strategic development.

The most recent analyst rating on (HK:1138) stock is a Buy with a HK$12.90 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 Expands Fleet with New Shipbuilding Contracts
Dec 12, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. has announced the signing of shipbuilding contracts with COSCO SHIPPING Heavy Industry subsidiaries for the construction of one ethylene carrier and eighteen oil tankers, amounting to RMB7,882 million. These transactions are classified as discloseable and connected under the Hong Kong Stock Exchange’s listing rules, necessitating shareholder approval and compliance with specific regulatory requirements, highlighting the company’s strategic expansion in its fleet to enhance its market positioning.

The most recent analyst rating on (HK:1138) stock is a Hold with a HK$11.00 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 Announces EGM for Strategic Decisions
Dec 4, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. has announced an Extraordinary General Meeting (EGM) scheduled for December 23, 2025, to discuss key resolutions, including the approval of a Charter Party agreement and the appointment of Ms. Ma Yuanru as a non-executive director. This meeting is significant as it could impact the company’s strategic direction and governance structure, potentially influencing its market position and stakeholder relations.

The most recent analyst rating on (HK:1138) stock is a Hold with a HK$11.00 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 Appointment of New Non-Executive Director
Nov 17, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. has announced the proposed appointment of Ms. MA Yuanru as a non-executive director, pending shareholder approval. Ms. MA brings extensive experience in investment management and has held various significant positions in related industries, which could enhance the company’s strategic direction and governance. Her appointment is expected to commence following the approval at the upcoming shareholders’ meeting, and she will not receive remuneration for her role.

The most recent analyst rating on (HK:1138) stock is a Buy with a HK$12.90 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 Reports Resilient Q3 2025 Amid Revenue Dip
Oct 30, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. has released its unaudited third quarterly report for 2025, showing a slight decrease in revenue and profit before tax compared to the previous period. Despite these declines, the net profit attributable to shareholders increased by 4.37%, indicating a resilient financial performance amidst challenging market conditions. The report highlights the company’s commitment to transparency and accuracy in financial reporting, as evidenced by the involvement of senior management in ensuring the report’s integrity.

The most recent analyst rating on (HK:1138) stock is a Buy with a HK$11.50 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 Announces Strategic VLCC Charter Agreement
Oct 30, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. announced a proposed charter agreement involving the lease of six VLCC crude oil tankers from Hainan COSCO SHIPPING Development. The agreement includes a mix of fixed and variable lease payments, with the latter incorporating a profit-sharing mechanism. This strategic move is aimed at balancing market fluctuations and is expected to be funded through internal resources. The transactions are classified as discloseable and connected under Hong Kong Listing Rules, requiring specific reporting and approval procedures.

The most recent analyst rating on (HK:1138) stock is a Buy with a HK$11.50 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 Acquisition of Shanghai Liquefied Gas
Oct 28, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. has announced a proposed acquisition of the entire equity interest in Shanghai Liquefied Gas for RMB598.2895 million. This transaction, involving Dalian COSCO Energy and COSCO SHIPPING Investment Dalian, is subject to terms outlined in the Shanghai Liquefied Gas Equity Transfer Agreement. The acquisition is considered a connected transaction under Hong Kong Listing Rules, requiring reporting and announcement but exempt from independent shareholder approval. The deal reflects strategic consolidation within the company, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:1138) stock is a Buy with a HK$11.50 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 Completes A Share Issuance to Boost Financial Strength
Oct 23, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. has successfully completed the issuance of A Shares to specific target subscribers, raising gross proceeds of approximately RMB8 billion. This issuance, which represents about 12.71% of the company’s issued share capital, aims to strengthen its financial position and support its strategic initiatives. The new shares were issued at a price of RMB11.52 each, and the proceeds will be allocated according to the company’s outlined plans. This move is expected to enhance COSCO SHIPPING’s market positioning and ensure compliance with public float requirements.

The most recent analyst rating on (HK:1138) stock is a Buy with a HK$11.50 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 Announces Upcoming Board Meeting for Financial Review
Oct 17, 2025

COSCO SHIPPING Energy Transportation Co., Ltd. has announced a board meeting scheduled for October 30, 2025, to consider and approve the unaudited financial results for the nine months ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:1138) stock is a Buy with a HK$9.50 price target. To see the full list of analyst forecasts on COSCO SHIPPING Energy Transportation Co stock, see the HK:1138 Stock Forecast page.

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: Jan 13, 2026