COSCO SHIPPING Holdings Co., Ltd.

Transcription

1 COSCO SHIPPING Holdings Co., Ltd Q3 Results STOCK CODE: SH / 1919.HK 31 October 2018

2 To become a top-tier container transportation and port service provider 01 Highlights 02 Financial Review 03 Market & Business Review 04 Market Outlook 1

3 Highlights 2

4 Highlights RMB mn 2018 Q Q Q Q1-Q Q1-Q3 YoY Revenue 21,923 23,152 37,055 82, % Gross profit 1,730 1,236 3,042 6,009 5, % Gross profit margin 7.9% 5.3% 8.2% 7.3% 8.6% -1.3PPs Net profit attributable to equity holders of the Company % Net cash flows generated from operating activities ,008 4, % RMB mn 2018/3/ /6/ /9/ /12/31 Equity attributable to equity holders of the Company 20,175 20,839 22,330 20,669 Total Asset 129, , , ,190 Long-term and short-term loans and total bonds payable 60,795 75, ,662 62,899 Net debt to total equity ratio 95% 104% 185% 86% 2018 Q H Q1-Q Weighted average ROE (%) 0.90% 0.20% 2.64% 13.89% Basic EPS (RMB)

5 Transaction Completed, focusing on potential synergies On July 9, a voluntary general offer with preconditions was announced to all shareholders of OOIL On August 28, the filing of SASAC was completed Approved by the general meeting of shareholders on Oct 16 with approval rating of over 99.9% On October 23, the U.S. antitrust review was completed The EU's antitrust review was completed on Dec 5 On June 29, China's antitrust review was completed with all preconditions met The offer was announced as unconditional on July 13 On May 15, the NDRC filing was completed On July 6, NSA signed, and the LBCT entity for sale On July 24,CSH became indirect controlling shareholder of OOIL On July 27, when the offer was due to end, it was announced that some of OOCL's senior executives had stepped into the management of CSH The transaction was closed on August Jul Aug Sep Oct Nov Dec May Jun Jul Aug Transaction Synergy 4

6 Structure of the Company CHINA COSCO SHIPPING CORPORATION LIMITED 45.47% COSCO SHIPPING HOLDINGS CO. LTD. ( SH/1919.HK) 100% 47.14% 75% COSCO SHIPPING Lines COSCO SHIPPING Ports (1199.HK) OOIL (316.HK) 5

7 Dual-Brand Strategy 6 Focus on releasing synergies Phase 1 Phase 2 Fleet and Network Equipment Management Maritime Operation Procurement IT Supply Chain Commercial Coordination Financing

8 A share placement Target Subscribers: no more than 10 specific subscribers (including China COSCO SHIPPING Corporation, the controlling shareholder of the Company) Proceeds: no more than RMB 12.9 billion, 50% of which already under the subscription pledge from China COSCO SHIPPING Corporation Use of Proceeds: payment of the consideration for existing ship orders (20 container vessels under construction) 13 th Dec 2017, announcement of approval from SASAC of the PRC 18 th Dec 2017, announcement of approval from the Shareholders at the EGM 26 th Jun 2018, announcement of approval from IEC of the CSRC 20 th Aug 2018, announcement that written approval from the CSRC received 7

9 Financial Review 8

10 Consolidated Income Statement RMB(mn) 2018 Q1-Q Q1-Q3 YoY(%) Revenues 82,130 67, Cost of services 76,121 61, Gross profit 6,009 5, Gross profit margin (%) 7.3% 8.6% -1.3PPs Administration expenses 4,239 3, Finance costs 1,947 1, Investment income 1,621 3, Operating profit 1,565 4, Add: Non-operating income 1, Less: Non-operating expenses Total profit 2,634 5, Less: Income tax expenses Net profit 2,130 4, Net profit attributable to equity holders of the listed Company 863 2, Basic EPS (RMB)

11 Consolidated Balance Sheet RMB mn YoY (%) Current assets 64,350 39, Non-current assets 163,522 93, Total assets 227, , Current liabilities 95,823 43, Non-current liabilities 77,063 45, Total liabilities 172,886 89, Equity attributable to the equity holders of the Company 22,330 20, Total equity 54,986 43, Net debt to total equity ratio (%) 185% 86% +99PPs 10

12 Consolidated Cash Flow Statement RMB mn 2018 Q1-Q Q1-Q3 Net cash (used in)/generated from operations 4,474 5,205 Net cash used in investing activities -33,705-10,683 Net cash generated from/(used in) Financing activities 36,848 5,670 Net cash inflows in the period 7, Net related exchange gain/(loss) Net increase in cash and cash equivalents 8, Cash and cash equivalents as at 1 January 25,739 32,189 Cash and cash equivalents as at 30 September 34,304 31,559 11

13 Market & Business Review 12

14 Supply side pressure in 2018Q1-Q3 ( 000 TEU) 600 Concentrated delivery of new vessels in 2018 Q1-Q3 ( 000 TEU) Global idle capacity stayed at historical low level in 2018Q1-Q3 Idle Capacity (L) Idle to Existing Fleet Ratio (R) ,000 1,500 1,000 1,4411,406 1,324 1, % 7% 6% 5% 4% 3% Q1 Q2 Q3 Q Q1 Q2 Q3 Q % 1% 0% Source: Alphaliner Monthly, October

15 Average CCFI* in 2018 Q1-Q3 decreased by 2.9% YoY In 2018 Q1-Q3,average CCFI: 810, -2.9% YoY; In 2018 Q3,average CCFI: 835, -1.2% YoY & +7.5% QoQ Jan-2017 Apr-2017 Jul-2017 Oct-2017 Jan-2018 Apr-2018 Jul-2018 Oct-2018 *CCFI: China Container Freight Index Source: Shanghai Shipping Exchange 14

16 Q3 is the peak season of major east-west routes Freight rates of Asia Europe routes (Westbound) SCFI* - Shanghai to Europe/Med. (USD/TEU) Freight rates of Transpacific routes (Eastbound) SCFI - Shanghai to USWC/USEC (USD/FEU) UERO MED USWC USEC Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 0 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 *SCFI: Shanghai Container Freight Index Source: Shanghai Shipping Exchange 15

17 Freight rates of some north-south routes softened in 3Q Q3 vs 2018Q2(SCFI) 2018Q3 vs 2017Q3(SCFI) -4.1% -14.2% -16.1% -18.3% -21.1% -26.1% 13.4% 11.0% 4.3% 0.6% 36.4% 56.5% USWC USEC EURO MED East/West Africa Japan Southeast Asia Korea Persian Gulf Austrlian/New Zealand South America South Africa -14.3% -31.8% -46.3% -53.6% 37.4% 33.8% 18.0% 13.6% 7.7% 4.1% 2.2% 0.4% USWC USEC Austrlian/New Zealand Korea MED Japan East/West Africa EURO Southeast Asia Persian Gulf South America South Africa Source: Shanghai Shipping Exchange 16

18 Higher bunker price 500 (USD/TON) 2017 Q1-Q Q1-Q3 YoY SGP 380CST % (USD/TON) 2017 Q Q3 YoY QoQ SGP 380CST % +8.3% Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 17

19 Ranking the third by fleet capacity Top liner companies (existing capacity) (million TEU) Top liner companies (existing capacity + order book) (million TEU) Maersk Line 4.04 Maersk Line 4.11 MSC 3.25 MSC 3.58 COSCO CSL+OOCL COSCO CSL+OOCL CMA CGM 2.64 CMA CGM 2.88 Hapag Lloyd 1.60 Hapag Lloyd 1.60 ONE 1.54 ONE 1.64 Evergreen 1.19 Evergreen 1.68 Yang Ming 0.63 Yang Ming 0.85 PIL 0.42 Zim 0.47 H.M.M 0.41 PIL 0.81 Zim 0.38 H.M.M Source: Alphaliner, Company data 18

20 Fleet capacity of the Group: 2.8mn TEUs As at 30 September 2018, fleet capacity of the Group reached 498 vessels / 2,796,702 TEUs, representing a 52.2 % YoY growth, with average fleet age of 9.9 years and average fleet capacity of 5,616 TEUs. Existing capacity Order book Combined TEUs Owned Chartered-in Total Capacity (TEU) 307,283 94, , , ,043 15,000 vessels Capacity (TEU) 433, , ,330 69, ,330 10,000 15,000 vessels Capacity (TEU) 205, , , ,188 8,000-10,000 vessels Capacity (TEU) 0 20,550 20,550-20,550 6,000-8,000 vessels Capacity (TEU) 314, , , ,583 4,000-6,000 vessels Capacity (TEU) 2, , , ,566 2,000-4,000 vessels Capacity (TEU) 14, , , ,292 <2,000 vessels Total Capacity (TEU) 1,277,902 1,518,800 2,796, ,850 3,030,552 vessels *Chartered-out capacity (6 vessels/54,816 TEUs) not included. Owned and Chartered breakdown (by TEU) Owned 46% 21% 34% Chartered from COSCO SHIPPING Development Chartered externally Orderbook delivery schedule Vessels TEUs 2018Q4 3 55, , Owned capacity change in 2018 Q1-Q3 Vessels TEU Scrapped 0 0 New Delivery ,316

21 Container shipping - cargo volume 000 TEU 2018 Q1-Q Q1-Q3 YoY Cargo Volume 16,022 13, % China Domestic; 30.6% Transpacific; 16.7% Asia-Europe (incl.med); 16.7% Other International Routes; 9.0% Intra-Asia; 26.9% 6,000 5,000 4,309 4,693 4,910 4,000 3,000 2,000 1,000 2,089 2,681 2,682 2,286 3, ,441 - Transpacific Asia-Europe (incl.med) Intra-Asia Other International Routes China Domestic 2017 Q1-Q Q1-Q3 20

22 Container shipping revenue (USD mn) 2018 Q1-Q Q1-Q3 YoY Revenue from routes 10,958 8, % Other International Routes; 13% China Domestic; 12% Transpacific; 30% 3,500 3,000 2,500 2,000 1,500 1,000 2,444 3,257 2,140 2,377 1,753 2,551 Intra-Asia; 23% 997 1,466 1,150 1,308 Asia-Europe (incl.med); 22% Transpacific Asia-Europe (incl.med) Intra-Asia Other International Routes China Domestic 2017 Q1-Q Q1-Q3 *USD/RMB FX rate: 1) 2018 Q1-Q3: ; 2)2017 Q1-Q3: ; 21

23 Container shipping unit income 2018 Q1-Q Q1-Q3 YoY Unit Income of international routes (USD/TEU) % Unit Income of China domestic routes (RMB/TEU) 1,741 1, % 1,400 1,200 1,000 1,170 1, ,113 1, Transpacific Asia-Europe (incl.med) Intra-Asia Other International Routes 2017 Q1-Q Q1-Q3 *USD/RMB FX rate: 1) 2018 Q1-Q3: ; 2)2017 Q1-Q3: ; 22

24 Terminal Business - total throughput +20.6% YoY The total throughput in 2018 Q1-Q3 was 87.5 million TEUs with an increase of 20.6% YoY. S.W. Coast 1% Overseas 21% 2018 Q1- Q3 Bohai Rim 33% ( 000TEU) 35,000 30,000 28, % Pearl River Delta 23% Yangtze River Delta 17% 25,000 20,000 19,580 20,049 20,085 18,553 E.W. Coast & others 5% 2017 Q1- Q3 15,000 10,000 14,722 14,773 13,568 S.W. Coast 1% Overseas 19% 注 1 Bohai Rim 27% 5,000 3,679 4, Pearl River Delta 28% Yangtze River Delta 20% - Bohai Rim Yangtze River Delta E.W. Coast & others Pearl River Delta S.W. Coast Overseas Q Q E.W. Coast & others 5% 23

25 Market Outlook 24

26 Supply growth in will slow down Fleet Projections 2019 Newbuild Deliveries ( 000 TEU) E 2019E 2020E 600 ( 000 TEU) Newbuild deliveries 1,195 1,408 1, Scrapped Capacity at year-end 21,100 22,347 23,222 23,741 Growth rate, net 3.7% 5.9% 3.9% 2.2% 来源 : Alphaliner Monthly, Oct % % 2.2% Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 2018E 2019E 2020E 25

27 Demand and supply dynamics 20.0% 15.0% 13.8% 13.2% 14.2% 10.0% 5.0% 0.0% 12.6% 5.7% 5.5% 9.1% 8.3% 7.9% 6.0% 5.9% 6.3% 4.7% 3.8% 5.1% 1.4% 8.6% 2.7% 1.8% 6.7% 3.7% 5.9% 4.5% 4.3% 4.3% 3.9% 2.2% -5.0% -8.2% -10.0% E 2019E 2020E Capacity Growth(%) 13.8% 13.2% 5.5% 9.1% 7.9% 6.0% 5.9% 6.3% 8.6% 1.8% 3.7% 5.9% 3.9% 2.2% Throughput Growth(%) 12.6% 5.7% -8.2% 14.2% 8.3% 4.7% 3.8% 5.1% 1.4% 2.7% 6.7% 4.5% 4.3% 4.3% Source: Alphaliner, Drewry 26

28 Trade war s impact on container shipping remains to be seen Freight rates of Transpacific routes (Eastbound) (USD/FEU) USWC USEC /10/26 USD 3, /10/26 USD 2, Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Source: Shanghai Shipping Exchange 27

29 To become a top-tier container transportation and port service provider Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of COSCO SHIPPING Holdings and certain plans and prospects of the management of COSCO SHIPPING Holdings. Thanks! Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual result or performance of COSCO SHIPPING Holdings to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward- looking statements are based on numerous assumptions regarding COSCO SHIPPING Holdings present and future business strategies and the political and economic environment in which COSCO SHIPPING Holdings will operate in the future. 28 The representations, analysis and advice made by COSCO SHIPPING Holdings in this presentation shall not be construed as recommendations for buying or selling shares of COSCO SHIPPING Holdings. COSCO SHIPPING Holdings shall not be responsible for any action or non-action made according to the contents of this presentation.