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

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HK:3877

CSSC (Hong Kong) Shipping Company Limited

(Frankfurt:3877)

Rating:82Outperform
Price Target:
HK$2.50
â–²(14.16% Upside)
The overall score is driven by strong financial performance and cash flow, despite high leverage and declining revenue. Technical indicators suggest bullish momentum, although RSI is nearing overbought levels. The stock's low P/E ratio and high dividend yield offer a compelling valuation for investors.
Positive Factors
Long-term Contracts
Approximately 75% of CSSC's vessels are under long-term contracts, ensuring earnings stability.
Market Momentum
The stock has gained momentum following its re-entry into the HK Stock Connect, and long-term investors are expected to be attracted to its high yield and steady earnings outlook.
New Leases
The company signed 10 new vessel leases during the period, up from only 4 in 1H23, outperforming the market.
Negative Factors
Shipping Sector Crisis
A systemic crisis in the shipping sector, leading to lessee defaults and asset impairments, could pose risks.

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 (3877) is a leading ship leasing company based in Hong Kong, specializing in providing comprehensive leasing services for a wide range of vessels, including containerships, bulk carriers, and oil tankers. As a subsidiary of China State Shipbuilding Corporation, the company leverages its strong industry connections and expertise to deliver tailored shipping solutions globally, catering to diverse clients in the maritime and logistics sectors.
How the Company Makes MoneyCSSC (Hong Kong) Shipping Company Limited primarily generates revenue through its ship leasing operations. The company enters into long-term lease agreements with shipping operators and logistics companies, providing them with access to a variety of vessels. These leases typically involve regular rental payments, which form a significant portion of the company's income. Additionally, CSSC Shipping may engage in sale-and-leaseback transactions, allowing shipowners to free up capital while retaining operational control of their vessels. The company's strategic partnerships within the shipbuilding and maritime industries, particularly through its affiliation with China State Shipbuilding Corporation, also enhance its ability to secure favorable leasing terms and expand its fleet, further contributing to 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
75
Positive
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
70
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.89B3.63B3.36B2.52B1.98B
Gross Profit3.64B3.32B2.58B1.95B1.59B
EBITDA3.26B3.17B2.68B2.19B1.74B
Net Income2.11B1.90B1.68B1.35B1.11B
Balance Sheet
Total Assets43.92B45.14B40.52B40.88B30.53B
Cash, Cash Equivalents and Short-Term Investments3.59B1.56B1.39B1.62B2.78B
Total Debt27.94B31.36B27.82B29.84B20.55B
Total Liabilities29.62B32.31B28.88B30.78B21.54B
Stockholders Equity14.18B12.71B11.51B10.02B8.95B
Cash Flow
Free Cash Flow5.73B-3.08B1.86B-10.37B-777.16M
Operating Cash Flow6.77B-452.17M3.85B-5.01B683.90M
Investing Cash Flow-1.58B-2.53B-1.48B-4.49B-2.10B
Financing Cash Flow-4.33B2.73B-2.61B8.73B1.70B

CSSC (Hong Kong) Shipping Company Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.19
Price Trends
50DMA
2.08
Positive
100DMA
1.86
Positive
200DMA
1.73
Positive
Market Momentum
MACD
0.04
Positive
RSI
57.76
Neutral
STOCH
54.90
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 2.19 is below the 20-day moving average (MA) of 2.23, above the 50-day MA of 2.08, and above the 200-day MA of 1.73, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 57.76 is Neutral, neither overbought nor oversold. The STOCH value of 54.90 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
HK$13.89B6.5415.41%5.98%14.56%10.45%
80
Outperform
HK$51.01B7.0815.25%4.95%2.02%20.55%
63
Neutral
HK$3.72B14.436.02%3.61%3.58%810.26%
58
Neutral
HK$13.23B4.28-2.97%5.82%2.91%-48.85%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3877
CSSC (Hong Kong) Shipping Company Limited
2.24
0.79
53.95%
HK:2588
BOC Aviation
73.50
8.42
12.94%
HK:1848
China Aircraft Leasing Group Holdings
4.99
2.40
92.66%

CSSC (Hong Kong) Shipping Company Limited Corporate Events

CSSC (Hong Kong) Shipping Signs Major Shipbuilding Agreements
Jul 16, 2025

CSSC (Hong Kong) Shipping Company Limited announced the signing of two Shipbuilding Agreements for the construction of vessels, valued at RMB1,056,000,000. These transactions are considered discloseable and connected under Hong Kong’s Listing Rules, necessitating shareholder approval and independent financial advice.

The most recent analyst rating on (HK:3877) stock is a Buy with a HK$2.08 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 Company Limited Announces Successful AGM Resolutions
Jun 27, 2025

CSSC (Hong Kong) Shipping Company Limited held its Annual General Meeting on June 27, 2025, where all proposed resolutions were passed with overwhelming shareholder support. Key decisions included the adoption of the 2024 financial statements, the declaration of a final dividend, the re-election of directors, and the granting of mandates to issue and repurchase shares, indicating strong governance and strategic planning for future growth.

The most recent analyst rating on (HK:3877) stock is a Buy with a HK$2.08 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 Secures Shareholder Approval for 2025 Framework
Jun 27, 2025

CSSC (Hong Kong) Shipping Company Limited announced that all resolutions proposed at their Extraordinary General Meeting on June 27, 2025, were approved by the shareholders. The key resolution involved the approval of the 2025 Financial Services Framework Agreement, which outlines the company’s financial strategies and transactions for the upcoming year. This approval signifies strong shareholder support and is expected to enhance the company’s operational capabilities and strategic positioning in the shipping industry.

The most recent analyst rating on (HK:3877) stock is a Buy with a HK$2.08 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 Director Resignation
Jun 23, 2025

CSSC (Hong Kong) Shipping Company Limited announced the resignation of Ms. Zhang Yi from her position as a non-executive director and member of the Audit and Strategic and Investment Committees, effective June 23, 2025, due to personal work arrangements. The company expressed gratitude for her contributions, and Ms. Zhang confirmed no disagreements with the board, indicating a smooth transition without impact on stakeholders.

The most recent analyst rating on (HK:3877) stock is a Buy with a HK$2.08 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 Board Composition and Roles
Jun 23, 2025

CSSC (Hong Kong) Shipping Company Limited has announced the composition of its board of directors and their respective roles within the company. The board includes a mix of executive, non-executive, and independent non-executive directors, with Mr. Li Hongtao serving as Chairman. The announcement outlines the membership of five key board committees, highlighting the company’s commitment to governance and strategic oversight.

The most recent analyst rating on (HK:3877) stock is a Buy with a HK$2.08 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 Updates Final Dividend for 2024
Jun 5, 2025

CSSC (Hong Kong) Shipping Company Limited announced an update to its final cash dividend for the year ended 31 December 2024, declaring a dividend of HKD 0.104 per share. The payment date has been set for 14 July 2025, following shareholder approval on 27 June 2025. This announcement reflects the company’s continued commitment to returning value to its shareholders, which may positively impact its market standing and investor relations.

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 AGM and Key Resolutions
Jun 4, 2025

CSSC (Hong Kong) Shipping Company Limited has announced its upcoming annual general meeting scheduled for June 27, 2025. Key agenda items include the adoption of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. Additionally, the company seeks approval for the directors to allot and issue shares, subject to certain conditions. These resolutions, if passed, could impact the company’s governance and financial strategies, potentially influencing shareholder value and market positioning.

The most recent analyst rating on (HK:3877) stock is a Buy with a HK$2.08 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 Final Dividend for 2024
Jun 4, 2025

CSSC (Hong Kong) Shipping Company Limited announced an update regarding its final dividend for the financial year ending December 31, 2024. The dividend, set at HKD 0.104 per share, will be paid on July 30, 2025, following shareholder approval on June 27, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may influence its market positioning by demonstrating financial stability and shareholder value.

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 to Hold EGM for 2025 Financial Framework Approval
May 30, 2025

CSSC (Hong Kong) Shipping Company Limited has announced an extraordinary general meeting scheduled for June 27, 2025, to consider and approve the 2025 Financial Services Framework Agreement. This agreement and its associated transactions, including proposed annual caps, are expected to impact the company’s financial operations and strategic positioning within the industry.

The most recent analyst rating on (HK:3877) stock is a Buy with a HK$2.08 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: Jul 04, 2025