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Equity Bottom-Up

COSCO Shipping Holdings / Equity Bottom-Up

<ul>
 <li>
Leading Market Position with State Backing: COSCO SHIPPING Holdings is one of the world's largest container shipping companies, benefiting from significant state ownership and a strong competitive position within the global shipping industry.</li>
 <li>
Attractive Valuation and Shareholder Returns: The company trades at a significant discount to its peers and the broader industry, suggesting potential undervaluation. This, combined with a history of substantial dividend payouts, presents a compelling value proposition for investors.</li>
 <li>
Cyclical Industry Headwinds and Earnings Volatility: The container shipping industry is inherently cyclical and currently facing headwinds from slowing global trade and normalizing freight rates after post-pandemic highs. This cyclicality introduces significant uncertainty and potential for earnings volatility in the near to medium term.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Leading Market Position with State Backing: COSCO SHIPPING Holdings is one of the world's largest container shipping companies, benefiting from significant state ownership and a strong competitive position within the global shipping industry.
  
Attractive Valuation and Shareholder Returns: The company trades at a significant discount to its peers and the broader industry, suggesting potential undervaluation. This, combined with a history of substantial dividend payouts, presents a compelling value proposition for investors.
  
Cyclical Industry Headwinds and Earnings Volatility: The container shipping industry is inherently cyclical and currently facing headwinds from slowing global trade and normalizing freight rates after post-pandemic highs. This cyclicality introduces significant uncertainty and potential for earnings volatility in the near to medium term.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: COSCO Shipping Holdings (1919 HK) - Sep 2025

COSCO SHIPPING Holdings   / Equity Bottom-Up

<ul>
 <li>
Dominant Market Position with State Backing: COSCO SHIPPING Holdings is one of the world's largest container shipping and terminal operators, benefiting from significant economies of scale, a modern fleet, and membership in the OCEAN Alliance. Its status as a Chinese state-owned enterprise (SOE) provides strategic advantages, including potential government support and alignment with national trade initiatives like the Belt and Road initiative.</li>
 <li>
Exposure to Extreme Cyclicality and Freight Rate Volatility: The company's financial performance is intrinsically linked to the highly volatile and cyclical container shipping market. The record profits of the post-pandemic era have normalized, and the industry now faces significant headwinds from vessel oversupply, which is expected to pressure freight rates and profitability.</li>
 <li>
Strategic Focus on Green and Digital Transformation: Management is proactively addressing long-term industry shifts by investing heavily in digitalization and green, low-carbon technologies. The company has a substantial order book for methanol dual-fuel vessels and is focused on building a global digital supply chain to enhance efficiency, meet stricter environmental regulations, and create new growth drivers.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Dominant Market Position with State Backing: COSCO SHIPPING Holdings is one of the world's largest container shipping and terminal operators, benefiting from significant economies of scale, a modern fleet, and membership in the OCEAN Alliance. Its status as a Chinese state-owned enterprise (SOE) provides strategic advantages, including potential government support and alignment with national trade initiatives like the Belt and Road initiative.
  
Exposure to Extreme Cyclicality and Freight Rate Volatility: The company's financial performance is intrinsically linked to the highly volatile and cyclical container shipping market. The record profits of the post-pandemic era have normalized, and the industry now faces significant headwinds from vessel oversupply, which is expected to pressure freight rates and profitability.
  
Strategic Focus on Green and Digital Transformation: Management is proactively addressing long-term industry shifts by investing heavily in digitalization and green, low-carbon technologies. The company has a substantial order book for methanol dual-fuel vessels and is focused on building a global digital supply chain to enhance efficiency, meet stricter environmental regulations, and create new growth drivers.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: COSCO SHIPPING Holdings   (601919 CH) - Sep 2025

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>SOUTHBOUND gross trading activity rebounded about 33% this week vs the previous week. Net buying was a little lower but still strong. Market volumes overall in HK rebounded.</li>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding (9988 HK)</a> was again the top buy and <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> and <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> the top two sells. Tech is having a mixed outing now.</li>
<li>Gross SOUTHBOUND volumes back up this week to levels seen just off the autumn peak. An interesting week as stocks popped Monday, opened high Tuesday, then fell all week.</li>
</ul>


SOUTHBOUND gross trading activity rebounded about 33% this week vs the previous week. Net buying was a little lower but still strong. Market volumes overall in HK rebounded.

Alibaba Group Holding (9988 HK) was again the top buy and Tencent (700 HK) and Meituan (3690 HK) the top two sells. Tech is having a mixed outing now.
Gross SOUTHBOUND volumes back up this week to levels seen just off the autumn peak. An interesting week as stocks popped Monday, opened high Tuesday, then fell all week.


HK Connect SOUTHBOUND Flows (To 13 Dec 2024); Politburo Policy Change Bullish, Markets Wary, Buying

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sichuan-kelun-biotech-biopharm" target="_blank" data-smartkarma-citation="entities:40071:1" rel="noopener">Sichuan Kelun-Biotech Bio (6990 HK)</a>, <a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic Ind. (669 HK)</a>, <a href="https://www.smartkarma.com/entities/vesync" target="_blank" data-smartkarma-citation="entities:31067:1" rel="noopener">Vesync (2148 HK)</a>, <a href="https://www.smartkarma.com/entities/chervon-holdings-limited" target="_blank" data-smartkarma-citation="entities:35309:1" rel="noopener">Chervon Hldgs (2285 HK)</a>, and <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec (2359 HK)</a> have a very high reliance on the US market.</li>
<li>
<a href="https://www.smartkarma.com/entities/vtech-holdings-ltd" target="_blank" data-smartkarma-citation="entities:18812:1" rel="noopener">Vtech Hldgs (303 HK)</a>, <a href="https://www.smartkarma.com/entities/samsonite-international-sa" target="_blank" data-smartkarma-citation="entities:12790:1" rel="noopener">Samsonite (1910 HK)</a>, <a href="https://www.smartkarma.com/entities/haier-smart-home-co-ltd-b3ef445f-0f54-4586-8c58-9073de98d60e" target="_blank" data-smartkarma-citation="entities:31105:1" rel="noopener">Haier Smart Home (6690 HK)</a>, and <a href="https://www.smartkarma.com/entities/tcl-multimedia-technology" target="_blank" data-smartkarma-citation="entities:15654:1" rel="noopener">Tcl Multimedia (1070 HK)</a> ranked lower on the list, but consumer cutbacks will have a bigger impact. </li>
<li>The spillover effect of a US recession to other countries will pressurise companies that have low direct exposure, like <a href="https://www.smartkarma.com/entities/orient-overseas-international" target="_blank" data-smartkarma-citation="entities:801:1" rel="noopener">Orient Overseas International (316 HK)</a> and <a href="https://www.smartkarma.com/entities/prada-s-p-a" target="_blank" data-smartkarma-citation="entities:889:1" rel="noopener">Prada S.P.A. (1913 HK)</a>.</li>
</ul>



Sichuan Kelun-Biotech Bio (6990 HK), Techtronic Ind. (669 HK), Vesync (2148 HK), Chervon Hldgs (2285 HK), and WuXi AppTec (2359 HK) have a very high reliance on the US market.

Vtech Hldgs (303 HK), Samsonite (1910 HK), Haier Smart Home (6690 HK), and Tcl Multimedia (1070 HK) ranked lower on the list, but consumer cutbacks will have a bigger impact. 
The spillover effect of a US recession to other countries will pressurise companies that have low direct exposure, like Orient Overseas International (316 HK) and Prada S.P.A. (1913 HK).


China & HK Strategy: Who Are the Victims of a US Recession?

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sitc-international-holdings" target="_blank" data-smartkarma-citation="entities:15301:1" rel="noopener">SITC International (1308 HK)</a>'s 93.5% profit growth in FY24 is at the top-end of the positive profit alert. A final DPS of HK$1.4 put it on a 7.3% dividend yield. </li>
<li>The FY25 long-term contract rate is expected to rise 10%, with volume growing at least 5% and lower costs. The consensus forecast of a 23.1% earnings decline is too conservative. </li>
<li>Having an ROE of 32% for FY25F, its 12-month forward P/B of 2.46x (vs. average of 2.59x) with net cash equals 5.4% of market capitalisation are inexpensive. </li>
</ul>



SITC International (1308 HK)'s 93.5% profit growth in FY24 is at the top-end of the positive profit alert. A final DPS of HK$1.4 put it on a 7.3% dividend yield. 
The FY25 long-term contract rate is expected to rise 10%, with volume growing at least 5% and lower costs. The consensus forecast of a 23.1% earnings decline is too conservative. 
Having an ROE of 32% for FY25F, its 12-month forward P/B of 2.46x (vs. average of 2.59x) with net cash equals 5.4% of market capitalisation are inexpensive. 


SITC International (1308 HK): Another Strong Year, with Excellent Yield

China

COSCO SHIPPING Holdings Co., Ltd offers marine freight transportation services.  The Company offers container shipping, dry bulk shipping, logistics services, freight forwarding, and terminal and container leasing services internationally.  COSCO SHIPPING Holdings Co., Ltd operates container ships and terminals, and manufactures shipping containers.

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COSCO Shipping Holdings (1919 HK)

Primer: COSCO Shipping Holdings (1919 HK) - Sep 2025

Leading Market Position with State Backing: COSCO SHIPPING Holdings is one of the world's largest container shipping companies, benefiting from...

αSK

Primer: COSCO SHIPPING Holdings (601919 CH) - Sep 2025

Dominant Market Position with State Backing: COSCO SHIPPING Holdings is one of the world's largest container shipping and terminal operators,...

αSK

HK Connect SOUTHBOUND Flows (To 13 Dec 2024); Politburo Policy Change Bullish, Markets Wary, Buying

SOUTHBOUND continues to buy, picking up what others don't want. Gross volumes higher, led by tech but tech flows are mixed. Financials continue to...

Travis Lundy

China & HK Strategy: Who Are the Victims of a US Recession?

Reliance on the US market varies among HK-listed companies, with some having high direct exposure to a recession. Those with low direct exposure...

Osbert Tang, CFA

SITC International (1308 HK): Another Strong Year, with Excellent Yield

SITC reports strong profit growth with a high yield. It should achieve good long-term contract rates, mid-single digit volume growth and lower...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Primer: COSCO Shipping Holdings (1919 HK) - Sep 2025

Leading Market Position with State Backing: COSCO SHIPPING Holdings is one of the world's largest container shipping companies, benefiting from...

αSK

Primer: COSCO SHIPPING Holdings (601919 CH) - Sep 2025

Dominant Market Position with State Backing: COSCO SHIPPING Holdings is one of the world's largest container shipping and terminal operators,...

αSK

HK Connect SOUTHBOUND Flows (To 13 Dec 2024); Politburo Policy Change Bullish, Markets Wary, Buying

SOUTHBOUND continues to buy, picking up what others don't want. Gross volumes higher, led by tech but tech flows are mixed. Financials continue to...

Travis Lundy

China & HK Strategy: Who Are the Victims of a US Recession?

​Reliance on the US market varies among HK-listed companies, with some having high direct exposure to a recession. Those with low direct exposure...

Osbert Tang, CFA

SITC International (1308 HK): Another Strong Year, with Excellent Yield

​SITC reports strong profit growth with a high yield. It should achieve good long-term contract rates, mid-single digit volume growth and lower...

Osbert Tang, CFA

Reliance on the US market varies among HK-listed companies, with some having high direct exposure to a recession. Those with low direct exposure...

SITC reports strong profit growth with a high yield. It should achieve good long-term contract rates, mid-single digit volume growth and lower...