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CSSC (Hong Kong) Shipping Company Limited (HK:3877)
:3877

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

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HK:3877

CSSC (Hong Kong) Shipping Company Limited

(3877)

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Outperform 80 (OpenAI - 4o)
Rating:80Outperform
Price Target:
HK$2.50
▲(16.28% 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 (3877) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionCSSC (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 MoneyCSSC (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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.03B2.89B3.63B3.36B2.52B1.98B
Gross Profit3.03B2.89B3.32B2.58B1.95B1.59B
EBITDA3.30B3.26B3.54B2.68B2.19B1.74B
Net Income1.88B2.11B1.90B1.68B1.35B1.11B
Balance Sheet
Total Assets42.20B43.92B45.14B40.52B40.88B30.53B
Cash, Cash Equivalents and Short-Term Investments1.18B3.59B1.14B1.39B1.99B3.50B
Total Debt25.55B27.94B31.36B27.82B29.84B20.55B
Total Liabilities27.50B29.62B32.31B28.88B30.78B21.54B
Stockholders Equity14.54B14.18B12.71B11.51B10.02B8.95B
Cash Flow
Free Cash Flow3.43B5.73B-3.08B1.86B-10.37B-777.16M
Operating Cash Flow3.82B6.77B-452.17M3.85B-5.01B683.90M
Investing Cash Flow-528.76M-1.58B-2.53B-1.48B-4.49B-2.10B
Financing Cash Flow-3.85B-4.33B2.73B-2.61B8.73B1.70B

CSSC (Hong Kong) Shipping Company Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.15
Price Trends
50DMA
2.10
Positive
100DMA
2.00
Positive
200DMA
1.92
Positive
Market Momentum
MACD
0.03
Negative
RSI
70.73
Negative
STOCH
93.46
Negative
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 2.15 is above the 20-day moving average (MA) of 2.11, above the 50-day MA of 2.10, and above the 200-day MA of 1.92, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 70.73 is Negative, neither overbought nor oversold. The STOCH value of 93.46 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$13.82B7.3213.91%7.30%0.17%-12.66%
73
Outperform
HK$54.86B8.7512.82%4.39%1.58%-16.66%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
58
Neutral
HK$3.46B12.946.30%6.29%-7.56%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3877
CSSC (Hong Kong) Shipping Company Limited
2.23
0.66
41.77%
HK:2588
BOC Aviation
79.05
23.87
43.26%
HK:1848
China Aircraft Leasing Group Holdings
4.63
1.58
51.80%

CSSC (Hong Kong) Shipping Company Limited Corporate Events

CSSC (Hong Kong) Shipping Declares Special Dividend on Strong Financial Position
Jan 6, 2026

CSSC (Hong Kong) Shipping Company Limited has declared a special dividend of HKD0.06 per share, citing its robust financial position, healthy cash flow and profit levels as justification for the payout. Shareholders on the register as of 5 February 2026 will be entitled to the dividend, which will be paid on or before 16 March 2026, with the company offering payment in either Hong Kong dollars or renminbi based on shareholder election. The board says the move is in the interests of the company and its shareholders as a whole, signalling confidence in its balance sheet and cash generation while providing an immediate return to investors.

The most recent analyst rating on (HK:3877) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on CSSC (Hong Kong) Shipping Company Limited stock, see the HK:3877 Stock Forecast page.

CSSC (Hong Kong) Shipping Announces Special Dividend With RMB Currency Option
Jan 6, 2026

CSSC (Hong Kong) Shipping Company Limited has declared a special cash dividend of HKD 0.06 per share, payable in Hong Kong dollars with an option for shareholders to elect payment in renminbi, with the RMB equivalent and exchange rate to be announced later. The shares will trade ex-dividend on 30 January 2026, with a record date of 5 February 2026 and payment scheduled for 16 March 2026, signalling a return of surplus capital to investors that may reflect the company’s solid cash position and offer an income boost to shareholders amid ongoing developments in the shipping finance market.

The most recent analyst rating on (HK:3877) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on CSSC (Hong Kong) Shipping Company Limited stock, see the HK:3877 Stock Forecast page.

CSSC (Hong Kong) Shipping Revamps Board with New Non-Executive Director from Shipbuilding Sector
Jan 6, 2026

CSSC (Hong Kong) Shipping Company Limited has announced board changes effective 6 January 2026, with non-executive director Zhang Qipeng stepping down, including from the audit and strategic and investment committees, due to work adjustments and without any disagreement with the board. He is being replaced by 57-year-old Xie Weizhong, an experienced shipbuilding executive currently serving as a director of China Shipbuilding Group Guangzhou Ship Industrial Co., Ltd., whose background in shipbuilding management and economics is expected to strengthen the company’s governance and strategic oversight through his roles on the audit and strategic and investment committees.

The most recent analyst rating on (HK:3877) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on CSSC (Hong Kong) Shipping Company Limited stock, see the HK:3877 Stock Forecast page.

CSSC (Hong Kong) Shipping Sets Out Board and Committee Structure
Jan 6, 2026

CSSC (Hong Kong) Shipping Company Limited has announced the current composition of its board of directors, detailing the mix of executive, non-executive and independent non-executive directors and clarifying their respective leadership roles. The company has also set out the membership structure of its five board committees—Audit, Nomination, Remuneration, Strategic and Investment, and ESG and Sustainable Development—highlighting key chairperson assignments and memberships, a move that underscores its governance framework and signals continued emphasis on oversight, strategic planning and sustainability to its investors and other stakeholders.

The most recent analyst rating on (HK:3877) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on CSSC (Hong Kong) Shipping Company Limited stock, see the HK:3877 Stock Forecast page.

CSSC (Hong Kong) Shipping Reshapes Charter Guarantees With US$73.1 Million Support for New Charterers
Dec 23, 2025

CSSC (Hong Kong) Shipping Company Limited has entered into a set of novation agreements under which the rights and obligations of the original charterers in several ship charters will be transferred to new charterers, and, once conditions are met, the company will be released from its existing obligations under the original charter guarantees from the effective date. At the same time, the company has agreed to provide new guarantees of up to US$73.1 million to support the new charterers’ performance under the novated charters; while these guarantees are treated as a series of related transactions under Hong Kong listing rules, their size keeps them below the threshold for a notifiable transaction, signalling continued support of key leasing clients without triggering more onerous regulatory requirements.

The most recent analyst rating on (HK:3877) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on CSSC (Hong Kong) Shipping Company Limited stock, see the HK:3877 Stock Forecast page.

CSSC (Hong Kong) Shipping Plans Board Meeting to Consider Special Dividend
Dec 22, 2025

CSSC (Hong Kong) Shipping Company Limited has scheduled a board meeting for 6 January 2026 to consider the declaration and payment of a special dividend, signaling a potential return of surplus capital to shareholders. Pending board approval, the company plans to announce further details of the proposed special dividend, a move that could enhance shareholder returns and may reflect management’s confidence in its financial position and cash generation capacity.

The most recent analyst rating on (HK:3877) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on CSSC (Hong Kong) Shipping Company Limited stock, see the HK:3877 Stock Forecast page.

CSSC (Hong Kong) Shipping Announces Auditor Change to Enhance Cost-Effectiveness
Nov 27, 2025

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.

The most recent analyst rating on (HK:3877) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on CSSC (Hong Kong) Shipping Company Limited stock, see the HK:3877 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: Nov 01, 2025