Event: the company issued the 2022 interim results announcement, 22H1 realized operating income of HK $1.505 billion, an increase of 43.32% over the same period last year, and realized a net profit of HK $873 million, an increase of 35.26% over the same period last year. The increase in revenue and profits was mainly due to the increase in the number of operating vessels and the substantial increase in investment income of the joint venture tanker fleet based on the market rental level, and the performance of the self-operated dry bulk carrier fleet continued to be excellent.
Rational allocation of ship types and charters to enjoy the current rising freight dividends: 22H1 will seize the development opportunity of the shipping market and continue to increase efforts to invest in clean energy equipment and segmented ships with good market potential, such as regional container ships and car transport ships, and optimize asset allocation. The size of the fleet operated by the company increased steadily compared with the same period last year, seizing the favorable opportunity of the strong recovery of the tanker transport market and the continued high level of the dry bulk market. The investment income and operating performance of assets such as the joint venture tanker fleet and self-operated bulk cargo fleet were excellent, of which the investment income of the joint venture tanker fleet totaled 92 million Hong Kong dollars, a substantial increase of 102 million Hong Kong dollars compared with the same period last year. While the long-term leasing business grows steadily, it fully shares the benefits of the shipping market boom and continues to maintain rapid growth in operating performance at a high level.
Adhere to the development direction of green shipping and strengthen the layout of the whole industry chain of clean energy: 22H1 continues to make efforts in the field of clean energy, with the entry into force of one 174,000 square LNG carrier and four self-operated LNG carriers. A new 86,000 square meter dual fuel liquefied gas tanker (VLGC) has been chartered, which is the first time in the world to use liquefied petroleum gas (LPG) as the main power fuel, maximizing the concept of "green environmental protection and low emission".
As of June 30, 2022, the number of clean energy equipment in the company's ship portfolio reached 20, accounting for 35.7 per cent of the contract value, generating revenue of HK $746 million, an increase of 83.5 per cent over the same period last year.
Continue to reduce financing costs and further promote reform and innovation: in July 2021, the company successfully issued $500 million of 5-year green and blue double-label bonds, reducing 21-year comprehensive financing costs to 1.9%. It has been awarded the main credit tracking rating of S & P A-and Fitch A for three consecutive years. Taking the pilot project of "double hundred actions" in the reform of state-owned enterprises as an opportunity, the company has implemented equity incentives for senior management personnel and key employees, initiated the reform of professional managers, and made use of market-oriented mechanism to enhance corporate governance efficiency and stimulate enterprise vitality. promote the high-quality development of the company.
Profit forecast, valuation and rating: due to the outstanding performance of the joint venture tanker fleet and self-operated bulk cargo fleet, the company's 22H1 profit has achieved good growth. Considering that the oil transportation price is still at a good level, continue to be optimistic about the follow-up profit performance of the company. We slightly raised the company's profit forecast for 2022-2023 by 3.66% 2.72% to 16.50 / 1.9 billion Hong Kong dollars, and forecast a profit of 2.15 billion Hong Kong dollars in 2024. The EPS for 2022-2024 is 0.27 pound 0.31 pounds 0.35 Hong Kong dollars respectively, and the current share price corresponds to 0.72 pounds 0.65 per cent PB 0.59X. Through the reasonable grasp of the downstream shipping market, and the reasonable allocation of ship assets and leasing contracts, the company's performance is expected to maintain good growth, and the company's valuation is still at a low level, maintaining the company's "buy" rating.
Risk hints: the risk of reducing the quality of loans receivable; the risk of interest rate fluctuations; the risk of customer payment default; the risk of foreign exchange rate fluctuations; the risks that may be brought about by the high periodicity of marine enterprises; and the competitive risks of the global leasing industry.