Incidents:

The company announced a favorable profit forecast for the first half of the year. It is expected that the total profit of the company's equity holders up to June 2023 (unreviewed) will increase by about 18% to 21% over the same period last year.

Comments and opinions:

1. 23 Net profit for the first half of the year is expected to increase by about 20% year-on-year, with the joint venture fleet contributing revenue:

The main reasons for the company's profit increase during the period are: (1) Long-term implementation of the concept of procyclical operation and countercyclical investment in the shipping industry. 23 Seizing energy transportation opportunities in the first half of the year, its joint venture fleet of finished tankers and clean energy carriers contributed good performance. (2) Allocate assets in a balanced manner. As of the end of 2022, financial leasing assets and operating leased assets accounted for 50.9% and 49.1% respectively. (3) Lean operation and cost management engineering system, with a balance ratio of 71.3% in 2022.

2. Fleet assets are stable and high quality, and the proportion of ships equipped with clean energy is significant:

By the end of 2022, the company had a total of 158 ships, including 129 ships in operation, 29 ships under construction, 20 new ships signed throughout the year, with a total contract amount of US$1.51 billion, and leased 19 new ships for operation, with a total contract amount of US$669 million. The utilization rate of the company's ship assets reached 100%, and the average age of the fleet was 3.2 years. In terms of fleet structure, offshore LNG/LPG equipped ships account for the largest share of 40%, followed by container ships accounting for 20%. Ship assets with high added value and green attributes account for a large share.

3. Give full play to your “ship understanding” advantages, invest countercyclically, and operate procyclically:

The company is the first shipyard ship leasing company in China. It is deeply involved in the shipping market. It uses the advantage of “understanding ships” during the countercyclical period to expand asset levels and enhance long-term profitability; strengthens shipping market management on the operating side during the procyclical period, fully realizes spot market dividends, and achieves steady profit growth. The company's profit after tax in 2022 was 1,734 million yuan, and the 5-year profit CAGR reached 23.5%.

4. Investment advice

The company's fleet has excellent assets, mature and scientific management strategies, and good profits. It is recommended to pay active attention.