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Pacific Basin Shipping (HK:2343)
:2343
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Pacific Basin Shipping
(OTC:2343)
Rating:75Outperform
Price Target:
HK$2.00
▲(5.26%Upside)
Pacific Basin Shipping (2343) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$9.72B
Dividend Yield5.62%
Average Volume (3M)21.89M
Price to Earnings (P/E)9.8
Beta (1Y)0.67
Revenue Growth12.03%
EPS Growth20.45%
CountryHK
Employees5,003
SectorIndustrials
Sector Strength92
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.11
Shares Outstanding5,087,946,300
10 Day Avg. Volume20,366,192
30 Day Avg. Volume21,885,040
Financial Highlights & Ratios
PEG Ratio-0.58
Price to Book (P/B)0.65
Price to Sales (P/S)0.00
P/FCF Ratio5.28
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$2.04Price Target Upside7.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Pacific Basin Shipping Business Overview & Revenue Model
Company DescriptionPacific Basin Shipping Limited (stock code: 2343) is a leading dry bulk shipping company headquartered in Hong Kong. It specializes in the transportation of minor bulk commodities, focusing on providing high-quality, reliable freight services across the globe. The company's core services include the chartering and operation of a diverse fleet of Handysize and Supramax vessels, which are designed to transport a wide range of dry bulk cargoes such as grains, minerals, and construction materials.
How the Company Makes MoneyPacific Basin Shipping generates revenue primarily through the chartering of its Handysize and Supramax vessels. The company earns money by providing shipping services to customers, which include commodity producers, traders, and end-users, who require the transportation of dry bulk goods. Revenue is earned from time charters, where customers hire vessels for a specific period, and voyage charters, where vessels are hired for specific voyages. The company operates in a highly competitive market, and factors such as global trade demand, freight rates, fuel costs, and fleet utilization rates significantly influence its earnings. Additionally, Pacific Basin Shipping may engage in strategic partnerships and long-term contracts with key clients to ensure steady revenue streams.
Pacific Basin Shipping Earnings Call Summary
Earnings Call Date:Feb 28, 2025
(Q4-2024)
| % Change Since: 18.68%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
Pacific Basin demonstrated strong financial performance and shareholder value initiatives, with significant improvements in freight rates and strategic fleet management. However, the company faced challenges from market weakness in Q4 2024, increased operating costs, and potential regulatory impacts. While there are positive prospects for 2025, the sentiment is tempered by these challenges.Q4-2024 Updates
Positive Updates
Strong Financial Position and Liquidity
Pacific Basin maintained a robust financial position with $548 million of available committed liquidity, including $282 million in cash and deposits. The company also returned to a net cash position of $20 million in 2024.
Shareholder Value Initiatives
The Board recommended a total dividend of 50% of net profit for 2024 and approved a $40 million share buyback program for 2025. In 2024, the company completed a $40 million share buyback, reducing issued share capital by 2%.
Improvement in Freight Rates
Average market spot freight rates for Handysize and Supramax increased by 24% and 21% year-on-year, respectively, driven by strong Chinese demand for coal, iron ore, and bauxite.
Outperformance in Handysize and Supramax
In 2024, Handysize and Supramax vessels outperformed indices by $1,720 and $710 per day, respectively. The Handysize outperformance was driven by well-timed cargo coverage and optimized trading.
Strategic Fleet Management
The company exercised the purchase option on a 158,000 deadweight tonnage Supramax vessel and sold five older Handysize vessels, maintaining a disciplined approach to fleet growth and renewal.
Negative Updates
Market Weakness in Q4 2024
The market weakened in the fourth quarter of 2024 as transit through the Panama Canal normalized and weaker-than-expected trading exports affected performance.
Increased Operating Costs
Handysize daily core vessel costs increased by 2% due to higher depreciation costs from drydocking and fuel-efficiency investments, while Supramax costs decreased by 5%.
Global Economic and Regulatory Challenges
Potential U.S. tariffs on Chinese imports and regulatory changes on Chinese-built vessels could disrupt trading patterns and affect market dynamics.
Weather-Related Disruptions
Operating activity margin was impacted by unforeseen weather-related disruptions and congestions, particularly related to Chinese steel exports in the fourth quarter of 2024.
Company Guidance
In Pacific Basin's 2024 Annual Results Earnings Call, CEO Martin Fruergaard provided a comprehensive overview of the company's financial performance and strategic initiatives. The company reported an EBITDA of $333 million and a net profit of $132 million, resulting in a 7% return on equity and an earnings per share of HK 0.199. They have a robust balance sheet with net cash of $20 million and committed liquidity of $548 million. In 2024, Pacific Basin's core business generated $178 million, benefiting from a stronger freight market, and their operating activity contributed $17 million with a margin of $630 per day over 27,610 days. The Board recommended a final dividend of HK0.051 per share, totaling $61 million in dividends for the year, which is 50% of net profit, excluding vessel disposal gains. They also completed a $40 million share buyback program, reducing share capital by 2%. Average market spot freight rates increased by 24% for Handysize and 21% for Supramax year-on-year, supported by strong Chinese demand. The company covered 92% and 100% of first-quarter 2025 vessel days for Handysize and Supramax at rates higher than current market spot rates. The call concluded with anticipation of continued volatility into 2025 and the introduction of Jimmy Ng as the new CFO starting in May 2025.Pacific Basin Shipping Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.43B | 2.58B | 2.30B | 3.28B | 2.97B | 1.47B | Gross Profit |
| 110.47M | 135.24M | 130.95M | 732.08M | 739.34M | 36.87M | EBIT |
| 104.50M | 0.00 | 124.27M | 723.95M | 730.88M | 30.76M | EBITDA |
| 258.62M | 357.43M | 348.52M | 866.03M | 850.32M | 157.63M | Net Income Common Stockholders |
| 81.67M | 131.70M | 109.38M | 701.86M | 844.81M | -208.23M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 443.82M | 282.04M | 261.40M | 443.82M | 459.67M | 234.77M | Total Assets |
| 2.65B | 2.41B | 2.43B | 2.65B | 2.75B | 2.19B | Total Debt |
| 471.90M | 344.36M | 366.25M | 471.90M | 648.59M | 940.72M | Net Debt |
| 113.06M | 62.32M | 104.85M | 113.06M | 338.95M | 714.45M | Total Liabilities |
| 741.33M | 587.39M | 634.53M | 741.33M | 914.21M | 1.13B | Stockholders Equity |
| 1.91B | 1.83B | 1.80B | 1.91B | 1.83B | 1.06B |
| Cash Flow | Free Cash Flow | ||||
| 211.89M | 180.93M | 101.33M | 850.60M | 625.94M | 116.19M | Operating Cash Flow |
| 302.17M | 309.33M | 353.40M | 935.32M | 850.42M | 219.61M | Investing Cash Flow |
| -30.06M | -87.40M | -61.17M | 63.18M | -334.00M | -92.11M | Financing Cash Flow |
| -235.25M | -214.40M | -389.73M | -949.13M | -433.03M | -101.57M |
Pacific Basin Shipping Technical Analysis
Positive
1.90
Price Trends
1.75
Positive
1.67
Positive
1.84
Positive
Market Momentum
0.05
Positive
57.31
Neutral
71.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2343, the sentiment is Positive. The current price of 1.9 is above the 20-day moving average (MA) of 1.89, above the 50-day MA of 1.75, and above the 200-day MA of 1.84, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 57.31 is Neutral, neither overbought nor oversold. The STOCH value of 71.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2343.
Pacific Basin Shipping Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | HK$84.33B | 4.19 | 21.08% | 11.99% | 27.79% | 87.52% | |
80 Outperform | €68.44B | 8.36 | 46.88% | 9.59% | 25.44% | 92.86% | |
75 Outperform | HK$9.72B | 9.82 | 7.27% | 5.62% | 12.03% | 20.45% | |
73 Outperform | HK$45.96B | 6.57 | 9.73% | 10.59% | 3.41% | ― | |
72 Outperform | $17.53B | 6.67 | 5.64% | 6.44% | 5.93% | -3.64% | |
66 Neutral | $4.50B | 12.28 | 5.32% | 248.52% | 4.13% | -12.36% | |
62 Neutral | $29.93B | 7.85 | 5.72% | 4.30% | 74.12% | 11.54% |
* Industrials Sector Average
Performance Comparison
HK:2343
Pacific Basin Shipping
1.95
-0.55
-21.84%
HK:1199
COSCO SHIPPING Ports
4.67
-0.27
-5.54%
HK:0316
Orient Overseas (International)
127.70
16.62
14.96%
HK:1138
COSCO SHIPPING Energy Transportation Co
5.88
-3.56
-37.72%
HK:2866
COSCO SHIPPING Development Co
1.00
>-0.01
-0.89%
HK:1308
SITC International Holdings Co., Ltd.
23.90
5.46
29.62%
Pacific Basin Shipping Corporate Events
Pacific Basin Shipping Adjusts Convertible Bond Conversion Price
May 2, 2025
Pacific Basin Shipping Limited has announced an adjustment to the conversion price of its US$175,000,000 3% Guaranteed Convertible Bonds due 2025. The conversion price will be adjusted from HK$1.39 per share to HK$1.35 per share, effective 2 May 2025, due to a final dividend payment. This adjustment aligns with the terms of the bonds and is expected to increase the maximum number of shares issuable upon full conversion to 163,165,015 shares. The announcement serves as a notification to bondholders regarding this change, which reflects the company’s ongoing financial strategies and impacts its convertible bondholders.
Pacific Basin Shipping Approves Key Resolutions at 2025 AGM
Apr 25, 2025
Pacific Basin Shipping Limited successfully conducted its 2025 Annual General Meeting (AGM) virtually, where all proposed resolutions were approved by shareholders. Key resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and the re-appointment of auditors. The approval of these resolutions signifies shareholder confidence in the company’s strategic direction and governance, potentially strengthening its industry positioning and stakeholder relations.
Pacific Basin Shipping Maintains Steady Performance Amid Market Challenges
Apr 17, 2025
In the first quarter of 2025, Pacific Basin Shipping experienced a decrease in global dry bulk loading volumes due to high inventory levels in China and ongoing trade conflicts. Despite a challenging market environment, the company maintained steady cash flow and outperformed market indices with its core business, achieving higher-than-average time-charter equivalent earnings. The company has covered a significant portion of its vessel days for the upcoming quarters, indicating a stable operational outlook. Additionally, the company expanded its operating activity, improving margins and contributing positively to its financial results.
Pacific Basin Shipping Announces 2025 AGM and Key Resolutions
Apr 2, 2025
Pacific Basin Shipping Limited has announced its 2025 Annual General Meeting, scheduled to be held virtually on April 25, 2025. Key agenda items include the adoption of the 2024 financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. Additionally, a resolution to grant a general mandate for the issuance of new shares was proposed, potentially impacting the company’s capital structure and market operations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.