Profit increased 26 times compared with the same period last year, with a dividend payout rate of 100% for two consecutive years

In the first half of 2021, the company achieved the best semi-annual performance in history, with operating income of US $6.988 billion, an increase of 103.7% over the same period last year, and net profit of US $2.811 billion, an increase of 2653.5% over the same period last year, with a net interest rate of 40.2%. The company completed container traffic of 3.927 million TEU, an increase of 19.5% over the same period last year, and the average revenue per container was 1651.8 US dollars / TEU, an increase of 73.8% over the same period last year. At the same time, the company announced an interim dividend of $1.76 per share and a special dividend of $2.65 per share, totaling $4.41 per share, with a dividend of 100% for two consecutive years and a dividend return of more than 20%.

Excellent operating ability, net cash for two consecutive years

Compared with Maersk, OOCL's transport capacity is less than 20% of Maersk's. The company completed 60% of Maersk's collection in the first half of 2021, and its net profit is close to 45% of Maersk's, reflecting the company's strong operating capacity. At the same time, the company's balance sheet is healthy. In the first half of 2021, the company's interest-bearing liabilities / total invested capital is only 10.8%, the current ratio is 2.56, and the interest guarantee ratio is as high as 96.3; the cash flow is also very abundant, and the company has been in a net cash state for two consecutive years.

The demand in the container transportation market is strong, and the freight rates of all routes continue to be at a new high.

Demand from major importing economies in the first half of 2021 was much higher than expected, particularly on trans-Pacific routes. Despite efforts by wholesalers and retailers to replenish supplies, the retail inventory ratio remains at an all-time low and trans-Pacific shipping volumes will continue to rise. At the same time, the epidemic has affected a series of events, such as bad weather around the world, labor disputes, and the closure of Meishan wharf in Ningbo. Congestion in major ports around the world has continued to intensify, the number of container ships moored has increased, and the supply of effective transport capacity is seriously limited. Freight rates for various routes may rise further in September. The outlook for the rest of 2021 and 2022 remains clear.

It is estimated that the company's operating income from 2021 to 2023 will be US $145.3, US $133.9 and US $13.17 billion respectively, an increase of 77.3%,-7.9% and-1.7% over the same period last year, and its net profit will reach US $60.4,46.8 and 4.07 billion, up 569%,-22.6% and-12.9% year-on-year. The valuation is 5.81 times the industry average, taking into account the liquidity of Hong Kong companies, giving a 5% liquidity discount to the corresponding share price of HK $407, an increase of 120% over the current share price.