China Cosco 1919

Re: China Cosco 1919

Postby winston » Tue Dec 02, 2008 6:20 pm

Not vested. From UOB-Kay Hian:-

Gloomy dry bulk market conditions –

SELL into strength
. The Baltic Dry Index has plunged to below 3,000 (approx. a breakeven level for CCH) since October. In light of the weakening demand for dry bulk shipments and the credit market has not shown any sign of improvement, we anticipate the BDI and the freight rates will continue to remain weak. As such, China COSCO’s (CCH) 2H08 net profit is expected to decline.

Locked in less than half of 2009 revenue. CCH locked in 20% of 2009 revenue as of 1H08. Although CCH aims to lock in more revenue days, we estimate only less than 50% of 2009 revenue was locked in. Going into 2009, we forecast the average BDI will not exceed 3,000. Therefore, CCH will be struggling to make profit in 2009-10.

Plunging book value. Tradewinds reported that a recent transaction price of a Panamax vessel dropped 70% from the peak. According to Clarksons’ figures, during the shipping down cycle in 1981-83, Capesize vessel prices fell 80% from the peak. As the vessels value had risen more than 5 times between 2003 and Jun 08, there is a possibility that the vessels’ value may continue to fall. If this is the case, CCH’s book value will fall drastically and thus its valuation appears unattractive.

The down cycle just started. The shipping down cycle typically last for 2-5 years. The dry bulk shipping down cycle just started and will not recover before 2010 given the huge vessels deliveries (vessel orderbook accounting for 70% of existing fleets) in the coming years. We
advise investors SELL into strength at this level.

Valuation. The stock is currently trading at 0.53x 2009 P/B (vs its historical average of 1.9x P/B and peers’ 0.49x 2009 P/B).
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: China Cosco 1919

Postby winston » Tue Dec 16, 2008 9:20 am

China Cosco's freight rate hedging losses widen

SHANGHAI, Dec 16 (Reuters) - China Cosco (601919.SS: Quote, Profile, Research, Stock Buzz), the country's largest shipping group, said on Tuesday that potential losses on its hedging of freight rates had jumped to nearly 4 billion yuan ($585 million) because of a plunge in rates.

Net unrealised losses on its purchases of Forward Freight Agreements (FFA) surged to 3.95 billion yuan as of Dec. 12 from 440 million yuan at the end of the third quarter, the company said in a statement.

The Baltic Dry Index .BADI, which measures changes in prices paid to ship commodities, fell sharply during the period, it noted.

"The global economic crisis worsened during the fourth quarter, which had a huge impact on the international shipping market," Cosco said. "The company is having a very difficult time in this quarter."

Wild changes in freight rates and prices of commodities such as oil have exposed several Chinese companies to hedging losses. Air China (601111.SS: Quote, Profile, Research, Stock Buzz) warned on Nov. 22 that potential losses from its fuel hedging contracts had tripled to $454 million from the third quarter, as energy prices slumped.

As of Dec. 12, Cosco's paper losses on FFAs totalled 5.38 billion yuan, while the company had realised a profit of 1.43 billion yuan on such agreements earlier in the year, it said.

The company made a net profit of 5.56 billion yuan in the third quarter, up from 4.73 billion yuan a year earlier.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: China Cosco 1919

Postby winston » Tue Dec 23, 2008 9:26 pm

China Cosco plans to issue 10b yuan bonds

HONG KONG - China Cosco Holdings, the world's largest dry bulk ship operator, said it plans to issue 10 billion yuan (US$1.46 billion) of bonds due in not more than 10 years on the mainland to help pay off debt and fund capital spending.

The bonds would be sold to institutional investors in China, the country's largest shipping group said in a statement to the Hong Kong stock exchange late on Monday.

The proposed bond sale is subject to approval from its shareholders. -- REUTERS
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: China Cosco 1919

Postby winston » Wed Feb 18, 2009 10:11 am

DJ MARKET TALK: Macquarie Cuts China Cosco Target To HK$6 Vs HK$7

1602 [Dow Jones] STOCK CALL: Macquarie cuts China Cosco (1919.HK) 2008 EPS forecast by 20% on high cost operating structure, declining shipping rates and likely lower capacity utilization.

"CCH might be able to pass to its parent losses related to its dry bulk segment for periods beyond 2009 if provisions are taken for future contracts in its 2008 to 2009 results," says Macquarie; tips 2009 loss per share at 45 fen, 2010 loss per share at 18 fen. Cuts target to HK$6.00 vs HK$7.00 but upgrades stock to Outperform from Neutral. Stock's early low of HK$4.70 as immediate support.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: China Cosco 1919

Postby winston » Fri Apr 24, 2009 2:47 pm

DJ MARKET TALK: China Cosco Not Cheap As Losses Likely Ahead-CS

1214 [Dow Jones] STOCK CALL: Credit Suisse expects China Cosco (1919.HK) could write back some forward freight agreement loss on a Baltic Dry Index recovery, but it will struggle to break even on losses from dry bulk and container shipping divisions in FY09.

"We think the counter is not cheap on 1.1X blended FY09 P/B considering our estimated losses in FY09-FY10," says Credit Suisse. Expects FY09, FY10 net losses at CNY3.67 billion, CNY4.36 billion, respectively. Notes FY08 results came in broadly inline with its expectation on operating level; keeps China Cosco at Neutral, target at HK$5.08, while forecasts under review. Stock +2.2% at HK$6.61.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: China Cosco 1919

Postby winston » Wed Jul 29, 2009 8:20 am

The shippers have been on fire the last few days. Economic recovery mah. China buying everything ...

=================================================


China COSCO sees H1 loss amid shipping downturn

HONG KONG, July 29 (Reuters) - China COSCO Holdings (601919.SS) (1919.HK) said late on Tuesday it expected to record a first-half loss as the global recession battered the global shipping industry.

The container shipping group said its container vessel fleet and its dry bulk vessel fleet both recorded losses, although conditions for the dry bulk shipping market have started to improve.
It did not say when it would disclose the H1 results.

The company recorded a profit of 15.12 billion yuan ($2.21 billion) for the first six months of 2008 in accordance with Hong Kong accounting standards, it said.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: China Cosco 1919

Postby winston » Fri Aug 28, 2009 10:29 am

RPT-UPDATE 1-China COSCO makes H1 loss, warns of tough H2

* H1 loss at 4.59 bln yuan vs 4.84 bln market estimate
* Warns of difficult H2 on lower demand, higher supply
* HK shares jumped 88 percent this yr outperforms market (Adds analyst comments and details)

By Alison Leung and Fang Yan

SHANGHAI/HONGKONG, Aug 27 (Reuters) - China COSCO Holdings (1919.HK), the country's largest shipping group, swung to a slightly smaller-than-expected net loss in the first half, and warned of a still tough second-half amid continuous decline of economy and trade.

"In the face of the significant over-supply and re-surging oil prices, it is expected that the operational conditions for the second half of the year will remain difficult," the company said on Thursday.

Analysts have said the freight market has begun to recover but the pace of a shipping industry upturn is likely to be slower than recovery of the world economy considering the long order books for new ships.

Drewry Shipping Consultants estimated global container volume to fall by 10.3 percent in 2009 and global container fleet capacity is expected to grow by more than 10 percent this year, China COSCO said.

China COSCO (601919.SS), which warned of a first-half net loss in July, reported a net loss of 4.59 billion yuan in Jan-June as the global recession took a toll on international trade, which badly hit sea transport volumes and rates.

The result was slightly better than a consensus forecast of 4.84 billion yuan loss from four analysts polled by Reuters and compared to a profit of 15.12 billion yuan a year ago.

Total revenue plunged nearly 60 percent to 28.9 billion yuan from 70.57 billion yuan a year ago.

China Shipping Container Lines (2866.HK) (CSCL), which vies with China COSCO as the world's sixth-l-half loss on Thursday.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: China Cosco 1919

Postby winston » Fri Oct 28, 2011 8:54 am

not vested

Profit Warning

The board of directors of the Company (the “Board”) wishes to inform shareholders of the Company and potential investors that the Group is expected to record a net loss attributable to shareholders of the Company for the year ending 31 December 2011 based on the preliminary estimation made by the Company’s finance department.

The Board believes that the expected loss for the year ending 31 December 2011 mentioned above is primarily attributable to the continual declining international shipping market, especially the severe situation in the international dry bulk shipping market, which has a rather significant impact on the Company’s operating results during the reporting period.

http://www.hkexnews.hk/listedco/listcon ... 027755.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: China Cosco 1919

Postby behappyalways » Fri Aug 26, 2016 10:43 am

Asia’s Biggest Container Shipper Posts Loss After China Merger
http://www.bloomberg.com/news/articles/ ... ina-merger
血要热 头脑要冷 骨头要硬
behappyalways
Millionaire Boss
 
Posts: 39929
Joined: Wed Oct 15, 2008 4:43 pm

Re: China Cosco 1919

Postby winston » Tue Aug 07, 2018 6:21 am

vested

OOIL sees capacity expansion boost

by Tereza Cai

Orient Overseas International (0316) said consolidation with COSCO (1919), would help the company achieve a medium- to long-term expansion of 1 million twenty-foot equivalent units.

The combined capacity of OOIL and COSCO will reach 3 million TEUs after newly-built vessels are delivered, a significant increase from the current combined capacity of 2.7 million TEUs.

OOIL will remain a listed company though its capacity is combined with that of COSCO. No orders for new vessels were placed in the first half of this year.

Trading in OOIL shares remain suspended until August 17. It closed at HK$82.55 before trading in its shares was halted on July 30.

In the first half of this year, OOIL suffered a US$10.3 million (HK$80.34 million) loss, a sharp reversal from a US$53.6 million profit in the same period last year.

The company attributed the loss to the spike in oil prices, which rose by 26 percent during the period. Revenue was up 10 percent, while liftings grew 6 percent.

OOIL expects oil prices to remain high and it plans to strengthen cooperation with ports to cut port handling fees.

The company expects the US-China trade war to have limited impact on its operations, especially since the volume of trans-Pacific trade rose 5.9 percent in the first half from a year earlier.

Source: The Standard

http://www.thestandard.com.hk/section-n ... 0807&sid=2
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Previous

Return to C

Who is online

Users browsing this forum: No registered users and 7 guests