The average freight in the fourth quarter increased by 22.8% compared with the same period last year, driving the company's excellent performance. In 2021, the company realized operating income of US $3.012 billion, an increase of 78.8% over the same period last year, and realized a gross profit of US $1.308 billion, an increase of 196.6% over the same period last year. Gross profit margin increased from 26.4% to 43.8% The net profit was US $1.167 billion, an increase of 231.6% over the same period last year, and the net interest rate increased to 38.7% from 21.0% in the same period last year. The average freight of the company in the fourth quarter of 2021 was 959.7 US dollars / TEU, an increase of 22.8% month-on-month and 58.9% year-on-year, driving a significant increase in the company's performance. The volume of completed container transport increased by 18.1% month-on-month and 17.8% over the same period last year.
The historical dividend rate is more than 70%. The dividend rate in 2021 is as high as 95%. In 2021, the company declared an interim dividend of HK100 cents per share. In December 2021, the company announced a special dividend of HK80 cents per share. It is proposed to pay a final dividend of HK140 cents per share. A total dividend of 320 HKS (about 41.6 cents) per share will be paid in 2021, with a dividend payout rate of 94.6%. Since 2013, the company's dividend payout ratio has been maintained at 70% or more of net profit.
The cost advantage of own ship appears, and the moat continues to deepen.
Ship rents rebounded in February 2022, with daily 1000TEU and 2000TEU rents of US $37000 and US $63,000 per day, respectively, an increase of more than 500% over the same period last year. The cost of the company's own ship is less than US $10,000 per day. According to the company's 2021 annual report, the company's container shipping costs increased by only 47.6% compared with 2020. In the second half of 2021, ship costs increased by only 25.6% compared with the first half of the year. Twenty-three ships will be delivered in 2022, of which seven will be delivered in the first half of the year and three have been delivered so far. The new capacity will be used to replace chartered ships and develop new regional routes in Southeast Asia, with cost advantages highlighted.
Continuous improvement of service quality and continuous optimization of customer structure
The number of weekly calls continued to increase from 385 in 2018 to 445 in 2021, and the number of trade routes increased to 74 from 64 in 2018. Through the high-frequency service network and the diversified services of sea and land, the service quality continues to improve, and the contracted customers are also constantly improving and optimizing, so as to stabilize the company's profitability.
The company is expected to have revenue of $3.625 billion / $3.461 billion in 2023, a year-on-year increase of 20.34% / 4.52%, and net profit of $1.653 billion / $1.354 billion, an increase of 41.62% and 18.06% respectively. The corresponding PE is 6.86 and 8.37 times respectively. Continue to maintain a "buy" rating with a target price of HK $52.