COSCO SHIPPING (1919) Q3 2024 earnings summary

Executive summary

• Revenue for 9M 2024 reached $24.6bn (RMB174.74bn), up 28–29.8% year-over-year; Q3 2024 revenue was RMB73.51bn, up 72% year-over-year.

• Net profit attributable to equity holders was $5.4bn (RMB38.12bn) for 9M 2024, up 72.7% year-over-year; Q3 2024 net profit surged 285.7% year-over-year to RMB21.25bn.

• EBIT for 9M 2024 reached $7.7bn (RMB54.41bn), up 63.7% year-over-year; Q3 2024 EBIT was RMB29.76bn, up 248.93%.

• The Group operated 528 container vessels with a total shipping capacity of 3.28 million TEUs as of September 2024.

• Cash flow from operations for 9M 2024 surged to $7.3bn (RMB51.69bn), more than doubling year-over-year.

Financial highlights

• Gross profit margin improved by 11.8 percentage points to 30.8% for 9M 2024.

• Basic EPS for 9M 2024 was RMB2.38, up 73.7% year-over-year.

• Net cash flows from operating activities for 9M 2024 reached RMB51.7bn, up 151.91% year-over-year.

• Debt to asset ratio decreased to 44.5% as of September 30, 2024, from 47.4% at end-2023.

• Total assets as of September 2024: RMB488.72bn (+5.65% from end-2023); owners' equity: RMB222.57bn (+13.49%).

Outlook and guidance

• Industry supply growth expected to outpace demand in 2024, with supply up 10.4% and demand up 5.2%.

• Company expects steady fleet capacity growth and continued focus on digital supply chain and green initiatives.

• Management highlights opportunities from global economic recovery and emerging markets, but notes risks from geopolitics and environmental regulations.

• Plans to repurchase 50–100 million A Shares at up to RMB20/share, using RMB1–2bn in funds, subject to shareholder approval.