Cosco Shipping International (Singapore) - DBS Research 2022-04-29: Watch For Inorganic Growth

Cosco Shipping International (Singapore) - Watch For Inorganic Growth

Published:
COSCO SHIPPING INTL(S) CO. LTD (SGX:F83) | SGinvestors.ioCOSCO SHIPPING INTL(S) CO. LTD (SGX:F83)
  • Cosco Shipping's Share Price currently trades at 0.9x FY22F P/B, 1 standard deviation below its 5-year mean, which is fairly valued given a projected FY22F ROE of 4.1% and a peer average P/B of 1.0x against an average ROE of 7.0%.

Cosco Shipping International (Singapore) - Company Background & History

  • - Read this at SGinvestors.io -
  • Formerly known as COSCO Corporation (Singapore) Limited, it operated one of the largest ship repair, shipbuilding, marine engineering, and dry bulk shipping outfits in China and Singapore. However, it divested its loss-making shipyard business in 2017 as part of a company-wide restructuring due to highly challenging market conditions. It then went on to acquire Cogent (SGX:KJ9), one of Singapore’s leading full-service logistics service providers with a track record of over 40 years, in 2018.
  • - Read this at SGinvestors.io -
  • With the 60% disposal of its equity interest in COSCO SHIPPING (Singapore) in December 2021, the company will generate revenue from three main business segments now:
    1. Logistics;
    2. property management; and
    3. ship repair and marine engineering.
  • Cosco Shipping International (Singapore) is ultimately controlled by the parent company, COSCO SHIPPING Corporation Limited, a state-owned enterprise established in the People’s Republic of China and China’s largest shipping group and one of the top shipping conglomerates in the world.
  • We believe Cosco Shipping International (Singapore) is a HOLD at the current prices. Our target price is pegged to 1.0x FY22F P/B, which is slightly less than 1 standard deviation below its 5-year mean. We have also cross-checked our valuation using the Discounted Cash Flow (DCF) valuation method, which yields a similar value of S$0.24.

Cosco Shipping International (Singapore)'s business segments

  • Read more at SGinvestors.io.




Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.




Paul YONG CFA DBS Group Research | Singapore Research Team DBS Research | https://www.dbs.com/insightsdirect/ 2022-04-29



Read also DBS's most recent report:
2022-08-15 Cosco Shipping International (Singapore) - 1H22 Largely In-line; Cut Target Price On Weaker Global Macro Outlook.

Price targets by other brokers at Cosco Shipping Target Prices.

Listing of research reports at Cosco Shipping Analyst Reports.

Relevant links:
Cosco Shipping Share Price History,
Cosco Shipping Announcements,
Cosco Shipping Dividends & Corporate Actions,
Cosco Shipping News Articles





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