COSCO SHIPPING Development Co Ltd

COSCO SHIPPING Development Co Ltd maintains a highly leveraged capital structure, characterized by a debt-to-equity ratio of 3.02 and a current ratio of 0.44. The balance sheet reflects total liabilities of 100.8 billion CNY against total equity of 30.8 billion CNY, with long-term debt constituting 93.1 billion CNY of the liability base. Despite generating 5.2 billion CNY in operating cash flow, the company reports negative free cash flow of -4.8 billion CNY due to capital expenditures of 9.0 billion CNY. This liquidity profile is flagged as medium risk, with key indicators noting that net cash is negative after subtracting total debt.

Profitability metrics indicate modest returns relative to the capital employed, with a return on equity of 5.23% and a return on assets of 1.22%. The company generated a net income of 1.6 billion CNY on revenue of 25.0 billion CNY, resulting in a gross profit of 4.5 billion CNY and operating income of 4.1 billion CNY. While the valuation appears compressed with a price-to-earnings ratio of 1.88 and a price-to-book ratio of 0.1, the enterprise value-to-EBITDA ratio stands at 23.53, suggesting that debt levels significantly impact enterprise-level valuation multiples.

Revenue concentration and segment details are not explicitly provided in the available data, limiting the ability to assess specific business unit performance or geographic exposure. The company operates within the Marine Transportation activity, but without disclosed segment breakdowns, the analysis relies on consolidated financial figures. The lack of segment data prevents a detailed evaluation of revenue mix or regional risk factors.

Growth trajectory analysis is constrained by the absence of historical period data in the input. The latest financial snapshot shows revenue of 25.0 billion CNY, but without prior year or quarterly trends, year-over-year growth rates cannot be calculated. Analyst estimates indicate a last actual revenue of 16.3 billion CNY and an EPS of 0.12 CNY, but these figures do not provide a clear trend line against the reported 25.0 billion CNY revenue in the financial snapshot, potentially indicating different reporting periods or adjustments.

Risk assessment highlights medium liquidity risk and low dilution risk. The primary financial concern is the high leverage, with long-term debt exceeding three times the equity base. The negative free cash flow further strains liquidity, requiring external financing or asset sales to maintain operations. Dilution risk is assessed as low, with basic and diluted shares outstanding both at 3.45 billion, indicating no significant recent equity issuances or convertible instruments impacting share count.

Recent observations include an ESG score of 52.26 with a grade of B-, reflecting strong governance (75.55) and environmental (60.66) pillars but weaker social performance (30.91). Competitor context lists Frontline, Okeanis Eco Tankers, and Stolt-Nielsen, though no direct comparative metrics are provided. No specific filing, news, or transcript observations are available to detail recent corporate events or management signals.

Return on equity of 5.23% outperforms the 4.51% median benchmark within the peer group.

Cash conversion ratio of 3.22 ranks in the top quartile, exceeding the 1.65 cohort median.

Long-term debt decreased from 92.5 billion CNY in 2015 to 88.0 billion CNY in 2017.

Dilution risk is assessed as low, suggesting limited immediate pressure on existing shareholder equity value.

Debt-to-equity ratio of 3.02 is in the bottom quartile, far exceeding the 0.32 cohort median.

The company faces high credit risk, indicating significant potential challenges in meeting financial obligations.

Free cash flow remained negative, reaching -4.8 billion CNY in 2018, indicating poor cash generation.

Revenue ¥24.98B, −8,8% YoY; Operating income +0,5% YoY.

• ▍Revenue ¥24.98B, −8,8% YoY
• ▍Operating income +0,5% YoY
• ▍Net income −4,5% YoY
• ▍Free cash flow −17,0% YoY
• ▍Net margin 6.4%

Revenue ¥27.41B, +76,5% YoY; Operating income +9,7% YoY.

• ▍Revenue ¥27.41B, +76,5% YoY
• ▍Operating income +9,7% YoY
• ▍Net income +19,8% YoY
• ▍Free cash flow −336,3% YoY
• ▍Net margin 6.2%

Revenue ¥15.53B, −38,9% YoY; Operating income −35,0% YoY.

• ▍Revenue ¥15.53B, −38,9% YoY
• ▍Operating income −35,0% YoY
• ▍Net income −64,1% YoY
• ▍Free cash flow +75,7% YoY
• ▍Net margin 9.1%

Revenue ¥25.42B; Operating income ¥5.70B.

• ▍Revenue ¥25.42B
• ▍Operating income ¥5.70B
• ▍Net margin 15.4%