COSCO SHIPPING Specialized(600428) 中银证券·2024-11-07 14:08Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 7.69, maintaining a previous rating of "Buy" [2]. Core Views - The company has shown significant growth in Q3, with a year-on-year increase in revenue of 47.74% and a net profit increase of 74.00%. The growth is attributed to the expansion of new capacities in specialized vessels and favorable market conditions [3][4]. - The report anticipates continued growth in net profit for the years 2024 to 2026, with projected figures of RMB 16.09 billion, RMB 19.35 billion, and RMB 22.54 billion respectively, reflecting growth rates of 51.2%, 20.3%, and 16.5% [3][4]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of RMB 120.43 billion, a 33.00% increase year-on-year, and a net profit of RMB 12.02 billion, up 31.38% [3]. - In Q3 alone, revenue reached RMB 45.63 billion, marking a 47.74% increase, while net profit was RMB 4.73 billion, a 74.00% increase [3]. Market Conditions - The BDI freight index averaged 1871 in Q3, up 56.7% year-on-year, while the CCFI and SCFI indices increased by 127.3% and 212.7% respectively [3]. - The report highlights a tightening supply in the multipurpose and heavy-lift vessel sectors, which is expected to benefit the company's operations [3]. Capacity Expansion - The company is set to expand its fleet with the delivery of new vessels, including 11 expected in the following year and 6 in 2026, aiming for a total of approximately 30 specialized car carriers with an annual capacity of 700,000 vehicles [3][4]. - The report emphasizes the positive outlook for the company's performance due to the expansion of its automotive shipping capacity [3]. Valuation Metrics - The projected earnings per share (EPS) for 2024, 2025, and 2026 are RMB 0.75, RMB 0.90, and RMB 1.05 respectively, with corresponding price-to-earnings (PE) ratios of 10.3, 8.5, and 7.3 [4][6]. - The report indicates an upward adjustment in profit forecasts due to favorable market conditions and capacity expansion [3][4].