Source: Visual China.
On January 10, COSCO Shipping Holdings (601919SH) released its 2023 annual performance forecast, showing that its annual net profit fell sharply due to weak industry demand.
According to preliminary estimates, COSCO SHIPPING Holdings will achieve an EBIT of about 366 in 20234.3 billion yuan, a decrease of about 78 compared with the same period last year54%。
Among them, COSCO SHIPPING Holdings will achieve a net profit attributable to listed companies of about 238 in 20235.9 billion yuan, a decrease of about 7825%。The non-net profit attributable to shareholders of the listed company was about 2374.7 billion yuan, a decrease of about 7824%。
Looking back on 2022, COSCO SHIPPING Holdings achieved an EBIT of approximately 1,7077.8 billion yuan, net profit of about 13133.8 billion yuan, net profit attributable to shareholders of listed companies is about 10959.5 billion yuan, and the non-net profit attributable to shareholders of listed companies was about 1090$2.9 billion.
According to the announcement, due to the implementation of the "Accounting Standards for Business Enterprises Interpretation No. 16", it is necessary to restate the data for the same period last year. After the restatement, in 2022, COSCO SHIPPING Holdings achieved an EBIT of approximately 1,7077.8 billion yuan, net profit of about 13145.9 billion yuan, net profit attributable to shareholders of listed companies is about 10970.2 billion yuan, the non-net profit attributable to shareholders of listed companies was about 10913.7 billion yuan.
As for the main reasons for the decrease in performance, COSCO SHIPPING Holdings believes that in 2023, the container shipping industry will face many challenges such as weakening transportation demand, rising capacity supply, and geopolitical tensions, and the market freight rate level will drop significantly compared with last year. In 2023, the average value of China's export container freight composite index (CCFI) is 93729 points, a year-on-year decrease of 6643%。In the case of a high performance base in the same period last year, the company's container shipping business revenue decreased year-on-year during the reporting period, resulting in a decrease in the performance of the current period compared with the same period last year.
In October 2023, when analyzing the third quarter report of COSCO Shipping Holdings, the national finance ** research report also pointed out that the revenue of the third quarter fell by 60% year-on-year, mainly due to the easing of congestion in the container transportation market, the recovery of supply, and the overall oversupply, resulting in a significant decline in market freight rates. However, the announcement of a medium-term profit distribution plan in August and the continued promotion of share buybacks have "boosted confidence".
According to COSCO Shipping Holdings, during the reporting period, in the face of market changes and challenges, the company focused on the positioning of the global digital chain operation and investment platform with container shipping as the core, anchored the two major tracks of digital intelligence and green and low-carbon, vigorously promoted the construction of global digital chain and green and intelligent shipping, and continuously improved the layout of the global resource network, deepened lean management and cost control, and strived to provide global customers with the best chain solutions of "container shipping + port + related logistics services", so as to provide the world's largest Build an efficient, smooth and safe circulation system.
On January 10, Huachuang** Research Report commented on COSCO Shipping Holdings' 2023 performance forecast, pointing out that the container shipping market will face many challenges in 2023, and the company's performance in the fourth quarter will be under pressure. Last year, the container freight rate fell sharply, and the growth rate of capacity supply in the container transportation industry increased, and the transportation demand weakened. According to Clarksons data, as of January 2024, container ship orders in hand accounted for 24 percent of the total capacity7%, the growth rate of the supply side in 2023 will be 8%, and the growth rate of the demand side will be only 14%, which is also one of the factors that led to a significant decrease in the market freight rate level compared with last year.
In the research report, Huachuang ** proposed to continue to pay attention to the impact of the Red Sea incident, believing that if the Red Sea incident continues to impact, COSCO SHIPPING Holdings' performance in 2024 is expected to benefit. According to the analysis of the research report, COSCO SHIPPING Holdings, as the world's leading central enterprise container transportation leader, has continuously enhanced its stable ability to resist pressure, and is optimistic about the leap in the value of the central enterprise cycle after the verification of the company's profitability center and the end-to-end transformation of "ship to chain". In addition, it is also believed that the company's promotion of share buybacks will effectively boost investor confidence.
As of January 10**, COSCO SHIPPING Holdings closed at 935 yuan, down 371%, with a total market capitalization of 150.3 billion. (This article was first published in Titanium**app, author|.)Fang Lu).