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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

(3877)

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Outperform 80 (OpenAI - 4o)
Rating:80Outperform
Price Target:
HK$2.50
▲(21.95% 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 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.03B2.89B3.63B3.36B2.52B1.98B
Gross Profit3.03B2.89B3.32B2.58B1.95B1.59B
EBITDA3.30B3.26B3.17B2.68B2.19B1.74B
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 Price2.05
Price Trends
50DMA
1.90
Positive
100DMA
2.00
Positive
200DMA
1.81
Positive
Market Momentum
MACD
0.05
Negative
RSI
58.65
Neutral
STOCH
60.51
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 2.05 is above the 20-day moving average (MA) of 1.98, above the 50-day MA of 1.90, and above the 200-day MA of 1.81, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 58.65 is Neutral, neither overbought nor oversold. The STOCH value of 60.51 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
€12.96B6.8613.91%7.37%0.17%-12.66%
73
Outperform
$48.62B7.7512.82%4.63%1.58%-16.66%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
58
Neutral
HK$3.34B12.476.30%6.59%-7.56%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3877
CSSC (Hong Kong) Shipping Company Limited
2.05
0.52
34.25%
HK:2588
BOC Aviation
70.05
12.40
21.50%
HK:1848
China Aircraft Leasing Group Holdings
4.66
1.62
53.29%

CSSC (Hong Kong) Shipping Company Limited Corporate Events

CSSC (Hong Kong) Shipping Announces Interim Dividend for 2025
Oct 6, 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.

The most recent analyst rating on (HK:3877) stock is a Hold with a HK$2.00 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 Approves Key Shipbuilding Agreements
Sep 25, 2025

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.

The most recent analyst rating on (HK:3877) stock is a Hold with a HK$2.00 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 Appoints New Executive Director and General Manager
Sep 25, 2025

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.

The most recent analyst rating on (HK:3877) stock is a Hold with a HK$2.00 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 of Directors and Roles
Sep 25, 2025

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.

The most recent analyst rating on (HK:3877) stock is a Hold with a HK$2.00 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 Interim Dividend for 2025
Sep 18, 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.

The most recent analyst rating on (HK:3877) stock is a Hold with a HK$2.00 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 Changes to Interim Dividend Dates
Sep 18, 2025

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.

The most recent analyst rating on (HK:3877) stock is a Hold with a HK$2.00 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 Declares Interim Dividend for 2025
Sep 12, 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.

The most recent analyst rating on (HK:3877) stock is a Hold with a HK$2.00 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 Interim Dividend with Currency Option
Sep 12, 2025

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.

The most recent analyst rating on (HK:3877) stock is a Hold with a HK$2.00 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 Reports Revenue Growth Amid Profit Decline in H1 2025
Aug 28, 2025

CSSC (Hong Kong) Shipping Company Limited reported its interim results for the first half of 2025, showing a 2.7% increase in revenue compared to the same period in 2024. Despite a 14.1% decrease in profit for the period, the company improved its net profit margin to 57.0% and reduced total expenses by 24.0%. The company’s financial position remains strong with a slight increase in total equity and improved liquidity indicators, maintaining stable credit ratings.

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 Interim Dividend for 2025
Aug 28, 2025

CSSC (Hong Kong) Shipping Company Limited has announced an interim cash dividend of HKD 0.05 per share for the six months ended 30 June 2025, with payment scheduled for 14 November 2025. This announcement reflects the company’s financial performance and commitment to returning value to shareholders, potentially impacting its market position 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 Calls Extraordinary Meeting for Shipbuilding Decisions
Aug 28, 2025

CSSC (Hong Kong) Shipping Company Limited has announced an extraordinary general meeting to be held on September 25, 2025, to discuss and potentially approve the Shipbuilding Agreements and related transactions. This meeting is crucial for the company’s strategic direction, as it involves significant decisions on shipbuilding investments, impacting its operational capabilities and market positioning.

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 Enhances Governance with Nomination Committee
Aug 28, 2025

CSSC (Hong Kong) Shipping Company Limited has outlined the terms of reference for its Nomination Committee, which was established in May 2019. The committee is responsible for nominating board members and ensuring diversity, with at least one member of a different gender and a majority being independent non-executive directors. This move is expected to enhance corporate governance and strengthen the company’s board structure, potentially improving stakeholder confidence.

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 Schedules Board Meeting for Interim Results and Dividend Decision
Aug 18, 2025

CSSC (Hong Kong) Shipping Company Limited has announced a board meeting scheduled for August 28, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the payment of an interim dividend, indicating the company’s ongoing commitment to shareholder returns.

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: Nov 01, 2025