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Pacific Basin Shipping Limited (HK:2343)
:2343
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Pacific Basin Shipping
(OTC:2343)
Rating:79Outperform
Price Target:
HK$2.50
▲(12.11% Upside)
Pacific Basin Shipping (2343) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
$11.62B
Dividend Yield3%
Average Volume (3M)20.93M
Price to Earnings (P/E)15.0
Beta (1Y)0.60
Revenue Growth-4.94%
EPS Growth22.86%
CountryHK
Employees5,003
SectorIndustrials
Sector Strength76
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.04
Shares Outstanding5,224,307,600
10 Day Avg. Volume22,219,344
30 Day Avg. Volume20,928,877
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue4.16
Enterprise Value/Gross Profit79.35
Enterprise Value/Ebitda30.02
Forecast
1Y Price Target
$2.50Price Target Upside12.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Pacific Basin Shipping Business Overview & Revenue Model
Company DescriptionPacific Basin Shipping Limited, an investment holding company, provides dry bulk shipping services worldwide. It also offers shipping consulting, ocean shipping, crewing, secretarial, and agency and ship management services; and engages in the vessel owning and chartering, and convertible bonds issuing activities. As of February 28, 2022, the company had a fleet of 130 Handysize vessels, and 124 Supramax vessels. Pacific Basin Shipping Limited was founded in 1987 and is headquartered in Wong Chuk Hang, Hong Kong.
How the Company Makes MoneyPacific Basin Shipping makes money primarily through the chartering of its bulk carriers. The company's revenue model is centered around the transportation of dry bulk commodities, where it earns freight revenue from customers who require the shipping of goods across various global trade routes. Pacific Basin operates on both spot and long-term charter markets, offering flexibility and competitive pricing to its clients. Key revenue streams include voyage charters, where the company is paid per voyage, and time charters, where vessels are leased for a set period. The company's earnings are influenced by factors such as global trade volumes, freight rates, and operational efficiency. Strategic partnerships with cargo owners and a focus on maintaining a modern, efficient fleet also contribute significantly to its revenue generation.
Pacific Basin Shipping Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant liquidity strength, strategic investments in green technology, and strong dividend and share buyback activities, boosting confidence. However, these were tempered by notable declines in freight rates and net profit, alongside concerns about reduced Chinese demand and potential regulatory impacts. Despite these challenges, the company shows resilience with strategic initiatives aimed at long-term growth and sustainability.Q2-2025 Updates
Positive Updates
Strong Liquidity Position
The company reported a net cash increase to $66 million and available committed liquidity stands at $550 million, supported by a new 7-year revolving credit facility of $250 million.
Dividend and Share Buyback Program
An interim dividend of HKD 0.16 per share was declared, amounting to $10.4 million. Additionally, $21 million was spent to buy back and cancel about 93 million shares, equating to 1.8% of share capital.
Supramax and Handysize Rate Outperformance
Despite a general market decline, average daily TCE earnings for Handysize and Supramax vessels outperformed the market by 27% and 40%, respectively.
Improvement in Freight Market
Freight rates for Handysize and Supramax vessels increased by 23% and 50%, respectively, since the start of the year, driven by congestion in South Atlantic ports and recovery in iron ore and soybean exports.
Strategic Investments in Green Technology
The company is investing in dual fuel low-emission vessels (LEVs) and has signed MOUs for green methanol sourcing as part of its decarbonization strategy.
Negative Updates
Decline in Freight Rates
First half average market spot freight rates for Handysize and Supramax vessels decreased by 21% and 34% year-on-year, resulting in a 21% decrease in the company's top line.
Reduced Chinese Import Demand
Chinese imports of major commodities declined due to heavy stockpiling in 2024, with grain loadings down 13% and coal loadings down 7% year-on-year.
Profit Decline
Net profit fell 56% to $26 million, and operating performance before overheads fell 28% to $62 million, driven by reduced freight rates despite a marginal increase in G&A and gains from vessel disposals.
Challenges with USTR Regulations
Potential implications of USTR 301 regulations on the company's operations in the U.S. market could impact financial performance if implemented.
Company Guidance
During Pacific Basin's 2025 Interim Results Conference Call, several key financial metrics were highlighted. The company reported an EBITDA of USD 122 million and a net profit of $26 million for the first half of 2025, resulting in a 3% annualized return on equity and basic earnings per share of HKD 0.039. Their core business contributed USD 51 million before overheads, despite a decrease from $77 million in 2024. Pacific Basin's net cash increased to $66 million, and they secured a new 7-year revolving credit facility of $250 million, enhancing their liquidity to $550 million. An interim dividend of HKD 0.16 per share was declared, amounting to $10.4 million or 50% of net profit, excluding vessel disposal gains. The company has been active in share buybacks, spending $21 million to repurchase and cancel about 93 million shares. In terms of market performance, the company outperformed market indices with TCE earnings of $11,010 for Handysize and $12,230 for Supramax, both down year-on-year but significantly above spot market rates. Operating margins improved by 29% year-on-year to $710 per day. The company also maintained its sector-leading vessel costs, with cash breakeven before G&A at $4,760 per day for Handysize and $4,890 for Supramax.Pacific Basin Shipping Financial Statement Overview
Summary
Pacific Basin Shipping shows a strong financial performance with significant revenue growth and improved net profitability. The balance sheet reflects reduced leverage and a stable equity position. Cash flow generation is particularly strong, supporting future growth and financial stability. However, the absence of EBIT data for 2024 could indicate potential operational challenges.Income Statement
The company shows strong revenue growth with a 12.4% increase from 2023 to 2024. Net profit margin improved to 5.1% in 2024 from 4.8% in 2023, indicating better profitability. However, the EBIT margin was not available for 2024, which could suggest volatility in operating performance. The EBITDA margin remained solid at 13.8%.75
Positive
Balance Sheet
The debt-to-equity ratio improved to 0.19 in 2024, indicating a healthier balance sheet with reduced leverage. The equity ratio is strong at 75.7%, reflecting a stable financial structure. However, a slight decrease in stockholders' equity in 2024 compared to 2023 might be a concern.70
Positive
Cash Flow
The company demonstrates robust free cash flow growth of 78.5% from 2023 to 2024, highlighting enhanced cash generation capabilities. The operating cash flow to net income ratio remains strong at 2.35, indicating efficient conversion of income into cash.80
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.58B | 2.30B | 3.28B | 2.97B | 1.47B |
| Gross Profit | 135.24M | 130.95M | 732.08M | 739.34M | 36.87M |
| EBITDA | 357.43M | 348.52M | 866.03M | 850.32M | 157.63M |
| Net Income | 131.70M | 109.38M | 701.86M | 844.81M | -208.23M |
Balance Sheet | |||||
| Total Assets | 2.41B | 2.43B | 2.65B | 2.75B | 2.19B |
| Cash, Cash Equivalents and Short-Term Investments | 282.04M | 261.40M | 443.82M | 459.67M | 234.77M |
| Total Debt | 344.36M | 366.25M | 471.90M | 648.59M | 940.72M |
| Total Liabilities | 587.39M | 634.53M | 741.33M | 914.21M | 1.13B |
| Stockholders Equity | 1.83B | 1.80B | 1.91B | 1.83B | 1.06B |
Cash Flow | |||||
| Free Cash Flow | 180.93M | 101.33M | 850.60M | 625.94M | 116.19M |
| Operating Cash Flow | 309.33M | 353.40M | 935.32M | 850.42M | 219.61M |
| Investing Cash Flow | -87.40M | -61.17M | 63.18M | -334.00M | -92.11M |
| Financing Cash Flow | -214.40M | -389.73M | -949.13M | -433.03M | -101.57M |
Pacific Basin Shipping Technical Analysis
Neutral
2.23
Price Trends
2.16
Positive
1.98
Positive
1.83
Positive
Market Momentum
0.02
Positive
51.33
Neutral
45.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2343, the sentiment is Neutral. The current price of 2.23 is below the 20-day moving average (MA) of 2.25, above the 50-day MA of 2.16, and above the 200-day MA of 1.83, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 51.33 is Neutral, neither overbought nor oversold. The STOCH value of 45.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2343.
Pacific Basin Shipping Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $11.62B | 14.97 | 5.53% | 3.00% | -4.94% | 22.86% | |
64 Neutral | $10.95B | 16.37 | 8.81% | 1.96% | 2.68% | -15.33% | |
| ― | $4.03B | 8.75 | 5.72% | 3.45% | ― | ― | |
| ― | $6.43B | 9.08 | 9.73% | 3.27% | ― | ― | |
| ― | $2.82B | 8.10 | 5.64% | 6.22% | ― | ― | |
| ― | $12.15B | 4.59 | 21.38% | 7.18% | ― | ― | |
| ― | €9.22B | 7.31 | 58.05% | ― | ― | ― |
* Industrials Sector Average
Performance Comparison
HK:2343
Pacific Basin Shipping
2.23
0.18
8.67%
CITAF
COSCO SHIPPING Development Co
0.15
0.03
25.00%
CSDXF
COSCO SHIPPING Energy Transportation Co
0.90
-0.11
-10.89%
CSPKF
COSCO SHIPPING Ports
0.71
0.12
20.34%
OROVF
Orient Overseas (International)
18.10
5.90
48.36%
DE:7S8
SITC International Holdings Co., Ltd.
3.38
1.56
85.71%
Pacific Basin Shipping Corporate Events
Pacific Basin Shipping Forms Nomination Committee for Board Oversight
Aug 1, 2025
Pacific Basin Shipping Limited has established a Nomination Committee to oversee the nomination of directors to its Board, ensuring a fair and transparent process. The committee is tasked with reviewing the Board’s structure, identifying qualified candidates, and supporting the Board’s performance evaluation, aligning with corporate strategy and regulatory compliance.
The most recent analyst rating on (HK:2343) stock is a Buy with a HK$2.03 price target. To see the full list of analyst forecasts on Pacific Basin Shipping stock, see the HK:2343 Stock Forecast page.
Pacific Basin Shipping to Review Interim Results and Dividend Proposal
Jul 28, 2025
Pacific Basin Shipping Limited has announced a board meeting scheduled for August 7, 2025, to review and approve the company’s interim financial results for the first half of the year. The meeting will also consider the possibility of declaring an interim dividend, which could impact shareholder returns and reflect the company’s financial health.
The most recent analyst rating on (HK:2343) stock is a Buy with a HK$2.03 price target. To see the full list of analyst forecasts on Pacific Basin Shipping stock, see the HK:2343 Stock Forecast page.
Caravel Group Becomes Largest Shareholder in Pacific Basin Shipping
Jun 25, 2025
The Caravel Group Ltd. has increased its shareholding in Pacific Basin Shipping Limited to 16%, making it the largest shareholder. This move reflects Caravel’s confidence in Pacific Basin’s management and operations, and its commitment to supporting the company’s growth and shareholder value creation.
The most recent analyst rating on (HK:2343) stock is a Buy with a HK$3.00 price target. To see the full list of analyst forecasts on Pacific Basin Shipping stock, see the HK:2343 Stock Forecast page.
Pacific Basin Shipping Announces 2025 Share Award Scheme
Jun 20, 2025
Pacific Basin Shipping has announced the grant of 28,626,000 awarded shares under its 2025 Share Award Scheme to eligible participants, including its Executive Director and Chief Executive Officer, Martin Fruergaard, and Chief Financial Officer, Ng Chi Kit, Jimmy. The awarded shares represent approximately 0.56% of the company’s issued share capital and are intended to serve as retention incentives and rewards for employee contributions. The scheme includes a mix of restricted share awards and performance share unit awards, with some shares subject to performance targets. The awards are subject to a clawback mechanism, ensuring alignment with shareholder interests.
The most recent analyst rating on (HK:2343) stock is a Buy with a HK$3.00 price target. To see the full list of analyst forecasts on Pacific Basin Shipping stock, see the HK:2343 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.