HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cosco-shipping-ports-ltd" target="_blank" data-smartkarma-citation="entities:360:1" rel="noopener">Cosco Shipping Ports (1199 HK)</a> is a major beneficiary of its parent's potential 20-30% stake in the consortium to acquire <a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison Holdings (1 HK)</a>'s port portfolio. </li>
<li>A potential injection of such assets from its parent will enhance its profitability, diversify its throughput mix, and expand its geographical coverage in the future. </li>
<li>Its 8.3x PER and 0.43x P/B are not expensive relative to earnings outlook and ROE. The strong 1Q25 and upcoming 1H25 results mean earnings upgrade potential. </li>
</ul>



Cosco Shipping Ports (1199 HK) is a major beneficiary of its parent's potential 20-30% stake in the consortium to acquire CK Hutchison Holdings (1 HK)'s port portfolio. 
A potential injection of such assets from its parent will enhance its profitability, diversify its throughput mix, and expand its geographical coverage in the future. 
Its 8.3x PER and 0.43x P/B are not expensive relative to earnings outlook and ROE. The strong 1Q25 and upcoming 1H25 results mean earnings upgrade potential. 


COSCO Shipping Ports (1199 HK): Potential Involvement in CKH's Port Sale

<ul>
<li>Following <a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison Holdings (1 HK)</a>'s port disposal, <a href="https://www.smartkarma.com/entities/cosco-shipping-ports-ltd" target="_blank" data-smartkarma-citation="entities:360:1" rel="noopener">Cosco Shipping Ports (1199 HK)</a> looks interesting, given its portfolio of port projects, which spans globally.</li>
<li>Overseas ports accounted for 38.9% of its noncurrent assets. A disposal of half of such portfolio will generate HK$15.2bn of cash flow, equalling almost 89% of its market capitalisation. </li>
<li>Even without corporate activities, its 6.4x PER, 6.7% dividend yield, and 11.8x EV/EBITDA are inexpensive. The 0.36x P/B for FY25 also deeply undervalued its assets.</li>
</ul>


Following CK Hutchison Holdings (1 HK)'s port disposal, Cosco Shipping Ports (1199 HK) looks interesting, given its portfolio of port projects, which spans globally.
Overseas ports accounted for 38.9% of its noncurrent assets. A disposal of half of such portfolio will generate HK$15.2bn of cash flow, equalling almost 89% of its market capitalisation. 
Even without corporate activities, its 6.4x PER, 6.7% dividend yield, and 11.8x EV/EBITDA are inexpensive. The 0.36x P/B for FY25 also deeply undervalued its assets.


COSCO Shipping Ports (1199 HK): What's Interesting After the CKH Port Sale?

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Capital Markets

<ul>
<li>So far in 2023 TS Lines has sold off close to one quarter of its shipping capacity</li>
<li>In the company's core market, Intra-Asia, it appears rates have bottomed out here in Q323</li>
<li>We also review Q2 financial results from TS Lines' main comp, Wan Hai Lines (WHL)</li>
</ul>


So far in 2023 TS Lines has sold off close to one quarter of its shipping capacity
In the company's core market, Intra-Asia, it appears rates have bottomed out here in Q323
We also review Q2 financial results from TS Lines' main comp, Wan Hai Lines (WHL)


TS Lines Pre-IPO | Slimming Down Fleet | Intra-Asia Market Update | Latest From Key Comp Wan Hai

AP Moeller - Maersk A/S / Equity Bottom-Up

<ul>
<li>Rates remain depressed but stable, and easier Y/Y comps will arrive in late Summer</li>
<li>Fuel costs should be a tailwind in Q2 results; Danish giant Maersk reports on August 4th</li>
<li>We expect Q2/H1 results to support our view that the worst of the storm has passed</li>
</ul>


Rates remain depressed but stable, and easier Y/Y comps will arrive in late Summer
Fuel costs should be a tailwind in Q2 results; Danish giant Maersk reports on August 4th
We expect Q2/H1 results to support our view that the worst of the storm has passed


Monthly Container Shipping Tracker | Rates Depressed, Stable | Worst of 'Storm' Passed (July 2023)

<ul>
<li>Our index suggests long-haul rates remained stable in May as carriers approach peak season</li>
<li>Cleanup of West Coast slowdown, lower fuel prices should both serve as Summer tailwinds</li>
<li>We believe conditions could improve in H2 2023, and shares remain cheap on Price / Assets</li>
</ul>


Our index suggests long-haul rates remained stable in May as carriers approach peak season
Cleanup of West Coast slowdown, lower fuel prices should both serve as Summer tailwinds
We believe conditions could improve in H2 2023, and shares remain cheap on Price / Assets


Monthly Container Shipping Tracker | Rates Stable | Strike Averted | Fuel Prices Lower  (June 2023)

Hong Kong

COSCO Shipping Ports Limited, through its subsidiaries, provides shipping container leasing services worldwide.  The Company also operates container terminals and provides container handling, storage, transportation and management services, as well as depot handling and stevedoring services.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Cosco Shipping Ports (1199 HK)