CSSC (Hong Kong) Shipping Company Limited (3877) AI Stock Analysis

• Market Cap: €12.96B
• Dividend Yield: 7.3%
• Average Volume (3M): 16.55M
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.30
• Revenue Growth: 0.17%
• EPS Growth: -12.66%
• Country: HK
• Employees: 83
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 0.18
• Shares Outstanding: 6,199,224,600
• 10 Day Avg. Volume: 18,274,198
• 30 Day Avg. Volume: 16,548,779
• PEG Ratio: 0.55
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 3.84
• P/FCF Ratio: 1.94
• 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: €2.71
• Price Target Upside: 28.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: HK$2.50 ▲(18.48% Upside)

The overall stock score is driven by strong valuation metrics, including a low P/E ratio and high dividend yield, which make the stock attractive. Technical indicators support a bullish outlook, although caution is advised due to near-overbought conditions. Financial performance is solid, but high leverage and declining revenue growth pose risks that need addressing.

Positive Factors

Cash Generation Ability

Strong cash generation supports operational flexibility and investment capacity, enhancing long-term business sustainability.

Profitability

High profitability margins indicate efficient operations and strong pricing power, contributing to sustained financial health.

Industry Connections

Strong industry ties provide competitive advantages in securing favorable leasing terms and expanding fleet capabilities.

Negative Factors

Revenue Decline

Declining revenue growth poses risks to future earnings potential and may impact the company's market position if not addressed.

High Leverage

High leverage increases financial risk and may constrain the company's ability to invest in growth opportunities.

EPS Growth Decline

Negative EPS growth indicates potential challenges in maintaining profitability and could affect investor confidence in the long term.

CSSC (Hong Kong) Shipping Company Limited Business Overview & Revenue Model

Company Description

CSSC (Hong Kong) Shipping Company Limited operates as a shipyard-affiliated leasing company in People Republic of China, Asia, the United States, and Europe. It operates through Leasing Services, Shipbroking Services, and Loan Borrowings segments. The company provides leasing services, such as finance and operating lease. It also offers shipbroking services; and loan services comprising pre-delivery loans, secured loans, and factoring services. As of December 31, 2021, the company had 158 vessels, including 130 vessels under lease and 28 vessels were under construction. The company was incorporated in 2012 and is headquartered in Central, Hong Kong.

How the Company Makes Money

CSSC (Hong Kong) Shipping Company Limited generates revenue primarily through the operation of its shipping fleet, which includes container ships and bulk carriers. The company earns income from chartering its vessels to other shipping companies and logistics firms, as well as through freight charges for transporting goods across international waters. Additional revenue streams include ship management services, where CSSC (Hong Kong) provides operational support and technical management for other vessels. The company may also benefit from strategic partnerships with logistics providers and participation in global supply chain networks, enhancing its service offerings and market reach. Factors such as shipping rates, demand for maritime transport, and fuel costs significantly impact its earnings.

CSSC (Hong Kong) Shipping Company Limited Financial Statement Overview

Summary

CSSC (Hong Kong) Shipping Company Limited displays strong profitability and cash flow generation capabilities. However, the high leverage and a notable decline in revenue growth highlight potential risks. Effective management of debt and reversing the revenue decline will be crucial for sustaining financial health.

Income Statement

The company demonstrated strong profitability in the latest year with a net profit margin of 72.73%, and an EBIT margin of 58.83%. However, the revenue contracted by 20.19% compared to the previous year, indicating a negative growth trend which is a significant concern. The absence of EBITDA margin data for the latest year limits the analysis.

Balance Sheet

The balance sheet shows a substantial debt-to-equity ratio of 1.95 indicating high leverage, which poses a risk. However, the equity ratio stands at 32.28%, reflecting a reasonable portion of equity in total assets. The return on equity (ROE) is an impressive 14.85%, showing strong profitability relative to equity.

Cash Flow

The company achieved a robust free cash flow of 5728.41 million, marking a significant recovery from the previous year's negative free cash flow. The operating cash flow to net income ratio is 3.21, indicating good cash conversion. The positive free cash flow to net income ratio of 2.72 reflects solid cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.03B	2.89B	3.63B	3.36B	2.52B	1.98B
Gross Profit	3.03B	2.89B	3.32B	2.58B	1.95B	1.59B
EBITDA	3.30B	3.26B	3.54B	2.68B	2.19B	1.74B
Net Income	1.88B	2.11B	1.90B	1.68B	1.35B	1.11B
Balance Sheet
Total Assets	42.20B	43.92B	45.14B	40.52B	40.88B	30.53B
Cash, Cash Equivalents and Short-Term Investments	1.18B	3.59B	1.14B	1.39B	1.99B	3.50B
Total Debt	25.55B	27.94B	31.36B	27.82B	29.84B	20.55B
Total Liabilities	27.50B	29.62B	32.31B	28.88B	30.78B	21.54B
Stockholders Equity	14.54B	14.18B	12.71B	11.51B	10.02B	8.95B
Cash Flow
Free Cash Flow	3.43B	5.73B	-3.08B	1.86B	-10.37B	-777.16M
Operating Cash Flow	3.82B	6.77B	-452.17M	3.85B	-5.01B	683.90M
Investing Cash Flow	-528.76M	-1.58B	-2.53B	-1.48B	-4.49B	-2.10B
Financing Cash Flow	-3.85B	-4.33B	2.73B	-2.61B	8.73B	1.70B

CSSC (Hong Kong) Shipping Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.11
• 50DMA: Positive
• 100DMA: Positive
• 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:3877, the sentiment is Positive. The current price of 2.11 is above the 20-day moving average (MA) of 2.10, above the 50-day MA of 2.02, and above the 200-day MA of 1.87, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.47 is Neutral, neither overbought nor oversold. The STOCH value of 44.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3877.

CSSC (Hong Kong) Shipping Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3877	80 Outperform	€12.96B	6.86	13.91%	7.30%	0.17%	-12.66%
2588	73 Outperform	$50.52B	8.06	12.82%	4.39%	1.58%	-16.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1848	58 Neutral	HK$3.34B	12.47	6.30%	6.64%	-7.56%	―

CSSC (Hong Kong) Shipping Company Limited Corporate Events

CSSC (Hong Kong) Shipping Announces Auditor Change to Enhance Cost-Effectiveness

CSSC (Hong Kong) Shipping Company Limited has announced a change of auditor due to a disagreement over audit fees with Grant Thornton Hong Kong Limited. Baker Tilly Hong Kong Limited has been appointed as the new auditor, effective from 27 November 2025. The company assures stakeholders that the change will not impact the audit for the financial year ending 31 December 2025 and is expected to enhance cost-effectiveness.

CSSC (Hong Kong) Shipping Announces Interim Dividend for 2025

CSSC (Hong Kong) Shipping Company Limited announced an interim cash dividend of HKD 0.05 per share for the six months ended June 30, 2025. Shareholders have the option to receive the dividend in RMB at an exchange rate of HKD 1 to RMB 0.913. The ex-dividend date is September 29, 2025, and the payment date is set for November 13, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may enhance its attractiveness to investors seeking stable dividend income.

CSSC (Hong Kong) Shipping Company Approves Key Shipbuilding Agreements

CSSC (Hong Kong) Shipping Company Limited announced the successful passing of resolutions at their extraordinary general meeting held on September 25, 2025. The resolutions, which were approved unanimously by independent shareholders, pertain to the approval and ratification of shipbuilding agreements and the authorization of directors to implement and effectuate these agreements. This development is significant for the company’s operational strategy and may enhance its position in the shipping industry by facilitating new shipbuilding projects.

CSSC (Hong Kong) Shipping Appoints New Executive Director and General Manager

CSSC (Hong Kong) Shipping Company Limited has announced the appointment of Mr. Liu Hui as an executive director and general manager effective from September 25, 2025. Mr. Liu brings extensive experience in shipping industry management, having held various senior roles in related companies, and his appointment is expected to strengthen the company’s strategic and investment initiatives.

CSSC (Hong Kong) Shipping Announces Board of Directors and Roles

CSSC (Hong Kong) Shipping Company Limited has announced its current board of directors and their respective roles within the company. This announcement outlines the composition of the board, including executive, non-executive, and independent non-executive directors, as well as their membership in various board committees. This update is crucial for stakeholders as it provides transparency and insights into the company’s governance structure, potentially impacting its strategic direction and operational oversight.

CSSC (Hong Kong) Shipping Announces Interim Dividend for 2025

CSSC (Hong Kong) Shipping Company Limited has announced an interim cash dividend of HKD 0.05 per share for the six months ending June 30, 2025. This update includes details on the dividend payment schedule, currency options, and shareholder registration deadlines, reflecting the company’s ongoing commitment to returning value to shareholders.

CSSC (Hong Kong) Shipping Announces Changes to Interim Dividend Dates

CSSC (Hong Kong) Shipping Company Limited has announced changes to the book closure dates, record date, and payment date for its Interim Dividend. The revised dates are now set from October 2 to October 6, 2025, with the dividend payment scheduled for November 13, 2025. Shareholders have the option to receive the dividend in either Hong Kong Dollars or Renminbi, with the latter calculated based on the average RMB to HKD central parity rate. This announcement impacts shareholders’ planning and the company’s dividend distribution process.

CSSC (Hong Kong) Shipping Declares Interim Dividend for 2025

CSSC (Hong Kong) Shipping Company Limited has announced an interim dividend of HKD0.05 per share for the first half of 2025, with payment scheduled on or before November 13, 2025. Shareholders have the option to receive the dividend in either Hong Kong Dollars or Renminbi, with the latter being calculated based on the exchange rate published by the People’s Bank of China. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment positively.

CSSC (Hong Kong) Shipping Announces Interim Dividend with Currency Option

CSSC (Hong Kong) Shipping Company Limited announced an interim dividend of HKD 0.05 per share for the six months ending June 30, 2025. This update includes details about the Hong Kong share register and offers shareholders a currency option for dividend payment, reflecting the company’s commitment to providing value to its investors.