COSCO SHIPPING (1919) H1 2024 earnings summary

Executive summary

• Revenue for 1H 2024 rose 10.19% year-over-year to RMB101.2 billion, with net profit attributable to equity holders up 1.87% to RMB16.87 billion.

• Container shipping volume increased 9.34% to 12.46 million TEUs, and terminal throughput grew 8.19% to 69.86 million TEUs.

• Interim dividend of RMB0.52 per share (approx. RMB8.3 billion total) declared, representing 49.2% of net profit for the period.

• The company advanced digitalization, green transformation, and expanded its global fleet and service network, including new energy-efficient vessels and extension of OCEAN Alliance cooperation to 2032.

• Share repurchase and capital reduction completed, with all repurchased shares cancelled by June 30, 2024.

Financial highlights

• Operating profit increased 5.1% year-over-year to RMB19.05 billion.

• Basic earnings per share rose to RMB1.05, up from RMB1.03 year-over-year.

• Net cash inflow from operating activities surged 70.71% to RMB22.64 billion.

• Cash and cash equivalents stood at RMB172.35 billion at period end.

• Gearing ratio improved by 2.5 percentage points to 44.9%.

Outlook and guidance

• Management remains cautiously optimistic for H2 2024 amid global economic uncertainties and expects continued demand growth in traditional and emerging markets.

• Focus areas include digital supply chain innovation, green low-carbon transformation, and global service expansion.

• Challenges include geopolitical risks, new vessel deliveries, and rising costs from green transformation.