证券研究报告 港股公司|公司深度|中国船舶租赁（03877） 产业壁垒较高、商业模式优异的高股息 标的 请务必阅读报告末页的重要声明 glzqdatemark1 2025年06月08日 证券研究报告 |报告要点 公司作为全球船舶租赁商龙头之一，具备五大核心优势。其一为背靠中国船舶集团，产业背景 深厚，产业资源丰富；其二为公司商业模式优异，固定+弹性收益在增强公司成长性的同时也 提升公司跨越周期的能力；其三为公司绿色转型较早，当前船队节能型船舶占比高达 89%，后 续环保达标压力小；其四为公司资质较好，融资成本较低，2024 年仅有 3.56%；其五为公司分 红水平较高，股息率维持在 7%以上。基于此，公司整体业绩表现优异，估值仍有提升空间。 |分析师及联系人 请务必阅读报告末页的重要声明 1 / 29 刘雨辰 陈昌涛 SAC：S0590522100001 港股公司|公司深度 glzqdatemark2 2025年06月08日 中国船舶租赁(03877) 产业壁垒较高、商业模式优异的高股息标的 | 行 业： | 非银金融/多元金融 | | --- | --- | | 投资评级： | 买入（首次） | | 当前价 ...

Fleet and Operations - As of the end of 2024, the fleet size reached 138 vessels, with 122 in operation and 16 under construction[9] - The average age of operational vessels was 4.03 years, indicating a relatively young fleet[62] - The company expanded its fleet by investing in eight 55,000-ton chemical tankers through a joint venture established in 2018[22] - The company signed new shipbuilding orders for 9 vessels with a contract value of USD 849 million, with 100% being mid-to-high-end ship types[47] - The company signed a financing lease project for two 174,000 cubic meter floating LNG storage and regasification units (LNG-FSRU) in 2017, marking a first in the domestic market[22] Financial Performance - In 2024, the company achieved a revenue of HKD 4.034 billion, representing a year-on-year growth of 11.3%[46] - The net profit for 2024 was HKD 2.155 billion, reflecting a year-on-year increase of 12.7%[46] - The company achieved a net profit margin of 53.4% for the year ending December 31, 2024, compared to 52.7% in 2023[39] - The average return on assets (ROA) increased to 4.8% in 2024 from 4.5% in 2023[39] - The company reported total assets of HKD 43,920,995,000 as of December 31, 2023[33] Debt and Financing - The company achieved a debt-to-asset ratio of 67.5% in 2024, down from 71.6% in 2023, indicating improved financial stability[39] - The average cost of interest-bearing liabilities was controlled at 3.5%, a decrease of 18 basis points year-on-year[63] - The company secured a 10-year ship mortgage loan totaling USD 596 million in collaboration with Standard Chartered Bank in 2021[22] - The company issued a total of RMB 800 million in "Panda Bonds," marking a historical low in financing costs and coupon rates for domestic bonds[22] - By the end of 2024, the proportion of RMB loans increased from 16.8% to 30.5%, while HKD loans rose from 5.1% to 7.0%, effectively diversifying financing currencies and lowering costs[64] Risk Management - The company aims to strengthen risk management and improve operational efficiency while ensuring transparency and shareholder returns[51] - The group has established a comprehensive risk management system to enhance its risk response capabilities and ensure stable performance amid various risks, including credit, market, and liquidity risks[130] - The group has adopted a prudent risk appetite strategy, focusing on industries with mature business models and high asset quality, while preferring large enterprises and industry leaders as clients[130] - The group plans to continue strengthening its comprehensive risk management system in 2024, optimizing its risk management strategies across major risk categories and business segments[131] Environmental and Social Governance - The company focuses on "green finance" and aims for carbon neutrality, aligning with national "dual carbon" goals[11] - The company received an ESG rating of A from Wind for 2024 and scored 45 points from S&P CSA, reflecting significant improvements in ESG governance[66] - The company aims to enhance its focus on clean energy and smart vessel market expansion, targeting collaborations with major cargo owners and energy companies[72] - The group aims to deepen its green low-carbon business model transformation while focusing on the ship and marine equipment leasing sector[109] Shareholder and Employee Information - The board proposed a final dividend of HKD 0.104 per share, bringing the total dividend for the year to HKD 0.134 per share[47] - The major shareholder, the State-owned Assets Supervision and Administration Commission, holds 4,602,046,234 shares, representing 74.38% of the company's equity[183] - The group has granted a total of 172,250,000 stock options under the stock option plan, which is 10% of the total shares issued as of the approval date[189] - Approximately 98% of the group's employees hold a bachelor's degree or higher as of December 31, 2024[179] Market Outlook - Global shipping trade volume is expected to grow by 1.4% and turnover by 0.9% in 2025, indicating potential opportunities in emerging market routes[68] - The global fleet capacity is projected to increase by 3.3% in 2025, driven by ongoing bulk order deliveries[68] - The capacity of product oil tankers is expected to grow by 5.6%, significantly outpacing the trade growth rate of 1.7%[69] - LNG vessel capacity is anticipated to rise by 9.9%, while trade volume is expected to grow by only 4.1%, indicating pressure on freight rates[69]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's performance met expectations, with total revenue for 2024 reaching HKD 4.441 billion, a year-on-year increase of 19%, and net profit attributable to shareholders at HKD 2.106 billion, up 11% year-on-year [6] - The fleet structure is continuously optimized, with a total fleet size of 138 vessels as of the end of 2024, and an average age of 4.03 years. The company is focusing on high-value and younger vessels, enhancing its market competitiveness [6] - Cost control measures have been strengthened, with the average cost of interest-bearing liabilities reduced to 3.5%, down 18 basis points year-on-year, which is significantly lower than the industry average [6] - The company maintains a high dividend payout ratio, with a dividend per share of HKD 0.134 for the year, resulting in a payout ratio of 39%. The expected dividend yield for 2025 is approximately 9% [6] - The company has been re-included in the Hong Kong Stock Connect, which is expected to enhance liquidity and accelerate value recovery [6] - The profit forecasts for 2025-2027 have been slightly adjusted upwards, with net profits projected at HKD 2.338 billion, HKD 2.550 billion, and HKD 2.790 billion respectively [6] Financial Data and Profit Forecast - Total revenue (in million HKD) for the years 2023 to 2027 is projected as follows: 3,745 (2023), 4,441 (2024), 4,332 (2025E), 4,526 (2026E), and 4,661 (2027E) [2][7] - Net profit attributable to shareholders (in million HKD) is forecasted as: 1,902 (2023), 2,106 (2024), 2,338 (2025E), 2,550 (2026E), and 2,790 (2027E) [2][7] - Earnings per share (in HKD) are expected to be: 0.31 (2023), 0.34 (2024), 0.35 (2025E), 0.38 (2026E), and 0.42 (2027E) [2][7] - Return on equity (ROE) is projected to remain stable around 15% for the forecast period [6]

Summary of the Conference Call for China Ship Leasing Company Overview - The company discussed is China Ship Leasing, which operates in the ship leasing industry and has shown strong financial performance in 2024 with a total of 138 vessels, of which 122 are operational and 16 are under construction [3][4]. Key Financial and Operational Highlights - The company has increased its operational fleet to 128 vessels and its total asset pool to 144 vessels, with an average vessel age of 4.303 years and a remaining lease term of 7.26 years, ensuring stable future revenues [3][4]. - The proportion of dual-fuel vessels is 19.8%, significantly higher than the global average, which helps attract high-quality clients [3]. - The vessel type distribution includes gas carriers (16%), container ships (16%), liquid cargo ships (20%), bulk carriers (24%), and special purpose vessels (20%), providing a balanced approach to market fluctuations [3][4]. Business Strategy and Market Position - Short-term leasing accounts for approximately 20% of the business, contributing 38.6% of profits, reflecting a dual strategy of long-term leasing and investment operations [3][4]. - The company plans to increase domestic RMB assets to hedge against RMB liabilities and reduce exchange rate risks [3]. - The impact of the US 301 tariff hearings, expected to be announced on April 17, 2025, is limited as the company’s operational routes do not currently involve the US [5]. Regulatory and Market Environment - The US tariff policy aims to increase government revenue and attract manufacturing back to the US, with potential countermeasures from China, such as interest rate cuts [7][8]. - The global shipping market is highly concentrated, with major players like Maersk and CMA CGM dominating, making it difficult for them to avoid using Chinese-made vessels despite tariffs [5]. Future Business Development - The company has established a department to expand into non-vessel marine engineering, focusing on domestic markets and projects like road transportation and AIADD emergency power systems [11]. - There is a strategic push for new vessel types, including LNG ships, and participation in polar routes due to climate change, which has made these routes more feasible [12]. Financial Management and Risk Mitigation - The company aims to increase its dividend payout ratio and has reached an agreement with the State-owned Assets Supervision and Administration Commission (SASAC) to position itself as a dividend stock [13]. - To manage shipping cycle fluctuations, the company is diversifying its asset allocation, locking in 20% of short-term leases as long-term leases, and optimizing its capital structure [14]. - The company has a risk rating standard that exceeds external ratings, with no large-scale impairment provisions expected in the near future [15]. Financing and Cost Outlook - The company anticipates a 20 basis point reduction in overall financing costs in 2025, benefiting from a declining interest rate environment [16]. - Global trade dynamics are expected to create new opportunities for the shipping industry, with a predicted 1% growth in global trade volume in 2025 [17]. Conclusion - China Ship Leasing is well-positioned in the ship leasing market with a diversified fleet, strategic growth plans, and proactive risk management strategies, making it a potential investment opportunity in the shipping sector.

Financial Performance - The company achieved revenue of HKD 4,034.4 million for the year ended December 31, 2024, representing an increase of 11.3% compared to HKD 3,626.1 million in 2023[3]. - Net profit for the year was HKD 2,155.1 million, up 12.7% from HKD 1,911.7 million in the previous year[3]. - Basic earnings per share increased to HKD 0.342, a rise of 10.3% from HKD 0.310 in 2023[3]. - The group's total revenue increased from HKD 3,626.1 million in 2023 to HKD 4,034.4 million in 2024, representing an 11.3% growth[31]. - Revenue from integrated shipping services rose by 22.8% from HKD 1,848.3 million in 2023 to HKD 2,269.5 million in 2024, primarily due to the addition of two LNG green energy vessels and improved market conditions[32]. - Financial services revenue slightly decreased by 0.7% from HKD 1,777.9 million in 2023 to HKD 1,764.9 million in 2024, attributed to a 10.1% decline in loan services revenue[33]. - The total comprehensive income for the year ended December 31, 2024, was HKD 2,189,145,000, an increase of 20.3% compared to HKD 1,819,918,000 in 2023[76]. Assets and Liabilities - Total assets decreased by 2.7% to HKD 43,921.0 million, down from HKD 45,143.6 million in 2023[4]. - Total liabilities decreased by 8.3% to HKD 29,623.0 million, compared to HKD 32,313.6 million in the previous year[4]. - The company's total equity increased by 11.4% to HKD 14,298.0 million, up from HKD 12,829.9 million in 2023[4]. - As of December 31, 2024, the total assets of the group amounted to HKD 43,921.0 million, a decrease of HKD 1,222.6 million compared to the previous year, primarily due to a reduction in receivables from loans and leases[43]. - The total liabilities of the group were HKD 29,623.0 million, down HKD 2,690.7 million from the previous year, mainly due to the repayment of high-interest USD bank loans[43]. - The equity at year-end increased to HKD 14,298.0 million, an increase of HKD 1,468.1 million, with the debt-to-equity ratio improving from 71.6% to 67.5%[43]. Cash Flow and Financing - The net cash inflow from operating activities for the year ended December 31, 2024, was HKD 6,768.3 million, primarily due to completed financing lease project payments and operating profits[58]. - The net cash outflow from investing activities was approximately HKD 1,577.4 million, mainly for payments related to operating lease shipbuilding and self-investment projects[59]. - The net cash outflow from financing activities was about HKD 4,331.7 million, primarily for the repayment of certain bank loans[59]. - The average cost of interest-bearing debt was controlled at 3.5% in 2024, a decrease of 18 basis points year-on-year, and 62 basis points lower than the P50 percentile of peers[16]. - The group issued a total of HKD 8.52 billion in Panda bonds in September 2024, achieving a new low in financing costs and interest rates for domestic bonds[53]. - The funds raised from the Panda bond issuance will primarily support domestic equipment upgrades and debt repayment[54]. Operational Highlights - The group achieved a net profit of HKD 1.05 billion from 11 jointly controlled vessels and HKD 490 million from 22 equity joint venture vessels in 2024, with a total net profit of HKD 49 million from its self-operated fleet[13]. - The group signed new shipbuilding orders for 9 vessels with a contract value of USD 849 million in 2024, with 100% of the orders being mid-to-high-end vessel types[14]. - As of December 31, 2024, the fleet size was 138 vessels, with an average age of 4.03 years for operating vessels and an average remaining lease term of 7.26 years for long-term lease projects[15]. - The average return on assets (ROA) improved to 4.8%, up from 4.5% in the previous year[5]. - The average return on equity (ROE) remained stable at 15.7% compared to the previous year[5]. Risk Management and Strategy - The company is adapting to new challenges in the shipping market, focusing on business expansion and risk management for sustainable development[11]. - The company aims to enhance its focus on clean energy sectors and strengthen market development for green and smart vessels[27]. - The company plans to accelerate domestic business expansion and actively pursue overseas projects to achieve significant business growth[27]. - The company will implement a comprehensive risk management system to enhance project risk assessment and monitoring[28]. - The company emphasizes the importance of maintaining a balance between low-risk, medium-risk, and high-risk projects to ensure sustainable development[25]. Corporate Governance - The company has complied with all applicable provisions of the Corporate Governance Code for the year ending December 31, 2024, except for the separation of the roles of Chairman and CEO[110]. - The audit committee, consisting of three independent non-executive directors, reviewed the financial information and the annual performance for the year ending December 31, 2024[116]. - The financial statements for the year ending December 31, 2024, have been reviewed by the audit committee and agreed upon with the external auditor[116]. - The board believes that having the same person serve as both Chairman and CEO enhances the execution of the group's business strategy and operational efficiency[111].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook based on its stable performance and attractive dividend yield [4][7]. Core Insights - The company is a leading player in the ship leasing industry, characterized by a young fleet and a strong focus on green energy initiatives. The report highlights the potential for continued profit growth driven by favorable market conditions and a strategic focus on green transformation [6][9]. - The company has a robust financial outlook, with projected net profits for 2024-2026 of 21.56 billion, 23.83 billion, and 26.48 billion HKD, respectively, reflecting year-on-year growth rates of 13.39%, 10.52%, and 11.11% [5][7]. Summary by Sections Company Overview - The company is the first shipyard-affiliated leasing company in Greater China, specializing in ship leasing with a strong understanding of the industry. It employs a cross-cycle strategy of "counter-cyclical investment and pro-cyclical operation" to mitigate market fluctuations [6][16]. Financial Performance - The company reported a revenue of 3,626.15 million HKD in 2023, with a year-on-year growth of 13.03%. The net profit for the same year was 1,901.61 million HKD, reflecting a growth of 12.86% [5][34]. - The company has maintained a high gross profit margin of 91.43% and a net profit margin of 52.72% in 2023, indicating strong operational efficiency [34]. Market Position and Strategy - The company has a diversified and modern fleet, with 125 operational vessels and 23 under construction as of mid-2024. The fleet's average age is approximately 3.73 years, positioning the company favorably in the market [28][29]. - The report emphasizes the increasing demand for financing due to the green transition in the shipping industry, driven by regulatory pressures and the need for compliance with environmental standards [45][58]. Profitability Forecast - The company is expected to benefit from a favorable market environment, with projected earnings per share increasing from 0.35 HKD in 2024 to 0.43 HKD in 2026. The price-to-earnings ratio is forecasted to decrease from 4.85 in 2024 to 3.95 in 2026, indicating potential undervaluation [5][7]. Green Transformation - The report discusses the urgency of green transformation in the shipping industry, with significant regulatory pressures leading to the retirement of older vessels. The company is well-positioned to capitalize on this trend through its focus on modern, energy-efficient ships [49][61].

Investment Rating - The report maintains a "Buy" rating for China Ship Leasing [4] Core Views - The company reported a 13% year-on-year increase in revenue to HKD 1.966 billion and a 22% increase in net profit to HKD 1.327 billion for the first half of 2024, meeting expectations [4] - The fleet structure has been optimized, with a total fleet size of 148 vessels and an average age of 3.73 years, enhancing asset value amid a shipbuilding boom [4] - The company has effectively managed funding costs, reducing the average cost of interest-bearing liabilities to 3.5% in the first half of 2024, down from 3.7% in 2023 [4] - The company emphasizes shareholder returns, with a projected dividend yield of approximately 8.1% for 2024 [4] - The re-inclusion in the Hong Kong Stock Connect is expected to enhance liquidity and accelerate value recovery [4] - The earnings forecasts for 2024-2025 have been revised downwards, with new projections for 2026 introduced [4] Financial Data and Earnings Forecast - Revenue is projected to grow from HKD 3.745 billion in 2023 to HKD 3.928 billion in 2024, with a growth rate of 5% [7] - Net profit is expected to increase from HKD 1.902 billion in 2023 to HKD 2.096 billion in 2024, reflecting a 10% growth rate [7] - The projected earnings per share for 2024 is HKD 0.27, with a price-to-earnings ratio of 4.8 [7]

Financial Performance - Revenue for the first half of 2024 reached HKD 1,965,771 thousand, representing a 13.5% increase compared to HKD 1,732,284 thousand in the same period of 2023[11]. - Operating profit for the first half of 2024 was HKD 1,105,081 thousand, up 29.5% from HKD 853,476 thousand in the first half of 2023[11]. - Net profit for the first half of 2024 increased by 22.9% to HKD 1,339,860 thousand, compared to HKD 1,090,615 thousand in the same period last year[11]. - The company achieved a basic and diluted earnings per share of HKD 0.216, reflecting a 22.0% growth from HKD 0.177 in the first half of 2023[11]. - Total expenses for the first half of 2024 were HKD 1,095,844 thousand, a 24.2% increase from HKD 882,255 thousand in the same period of 2023[11]. - The comprehensive shipping services segment generated revenue of HKD 1.069 billion, up 19.9% year-on-year, while financial services revenue rose 6.7% to HKD 896 million[24]. - The group achieved a profit of HKD 1.30 billion from 8 MR product tankers and HKD 1.27 billion from 6 LR1 product tankers, contributing a total investment income of HKD 2.57 billion from 14 product tankers in the first half of 2024, a year-on-year increase of 36.0%[26]. - The operating profit from short-term and spot-operated bulk carriers reached HKD 0.54 billion in the first half of 2024, representing a year-on-year growth of 55.9% compared to the first half of 2023[26]. Asset and Liability Management - As of June 30, 2024, total assets decreased by 3.0% to HKD 43,787,885, while total liabilities decreased by 6.8% to HKD 30,121,138, resulting in total equity increasing by 6.5% to HKD 13,666,747[13]. - The company's debt-to-asset ratio improved to 68.8% from 71.6% year-on-year, indicating better financial stability[15]. - The net debt-to-equity ratio decreased to 2.0 times from 2.4 times, reflecting a reduction in leverage[15]. - The company's interest-bearing debt was approximately HKD 28 billion, with an average financing cost of 3.5%, down 0.2 percentage points from the previous year[33]. - The company's total borrowings, including bonds and other loans, decreased from HKD 31,333,427,000 as of December 31, 2023 to HKD 28,446,173,000 as of June 30, 2024, reflecting a reduction of approximately 9.2%[144]. - The company reported a significant increase in secured other borrowings, rising from HKD 271,876,000 as of December 31, 2023 to HKD 963,219,000 as of June 30, 2024, representing a growth of 254.5%[150]. Operational Efficiency - The company maintains a 100% utilization rate of its fleet, indicating strong operational efficiency[5]. - The average return on assets (ROA) improved to 6.0% from 4.5% year-on-year, and the average return on equity (ROE) increased to 20.2% from 15.7%[15]. - The average daily charter rates for LNG carriers in the first half of 2024 were USD 29,740, USD 43,846, and USD 55,971 for different vessel sizes, reflecting year-on-year declines of 23.3%, 28.7%, and 33.3% respectively[20]. - The average charter rate for VLGCs in the first half of 2024 was USD 54,267 per day, representing a year-on-year increase of 30.8%[20]. - The average daily charter rate for PCCs was USD 110,833, showing a year-on-year increase of 0.8%, while the rate for 5,000 CEU PCTC remained stable at USD 90,000[20]. Strategic Initiatives - The company focuses on the "dual carbon" goals and aims to expand its competitive advantages in the maritime and financial sectors[5]. - The company is actively involved in the development of clean energy maritime equipment and has established a comprehensive offshore clean energy storage and transportation system[4]. - The company plans to focus on green and intelligent ship technologies, with significant developments in LNG and methanol-powered vessels expected in 2024[23]. - The company plans to focus on new ship deployments in the clean energy sector and optimize its fleet structure towards greener and higher value-added vessels[37]. - The company is adopting a "counter-cyclical investment, pro-cyclical operation" strategy to enhance operational efficiency amid increasing market competition[24]. Credit Ratings and Financial Stability - The company has been recognized with an "A" rating from Fitch and an "A-" rating from S&P for five consecutive years since its listing[4]. - The company maintained its credit ratings of A- from S&P Global and A from Fitch, indicating strong creditworthiness[15]. - The group maintained its credit ratings, with Fitch rating at A and S&P at A-, indicating stable credit outlooks[79]. Cash Flow and Investment Activities - Net cash generated from operating activities for the six months ended June 30, 2024, was HKD 4,273.1 million, primarily due to payments received from completed financing lease projects[72]. - Net cash used in investing activities was HKD 997.3 million, mainly for payments to shipyards for operating leases and self-investment projects[73]. - Net cash used in financing activities was HKD 2,812.3 million, primarily due to repayments of several bank loans during the period[73]. - The company maintained a stable cash position with cash and cash equivalents increasing to HKD 1,401.2 million as of June 30, 2024[72]. Employee and Management Information - The group has a total of 84 employees as of June 30, 2024, with approximately 98% holding a bachelor's degree or higher[81]. - Employee benefits expenses increased by 26.0% to HKD 31.0 million, compared to HKD 24.6 million in the same period last year[51]. - The total remuneration for key management personnel was HKD 8,120,000 for the six months ended June 30, 2024, a decrease from HKD 9,744,000 in 2023[161]. Risk Management and Governance - The group has established a comprehensive risk management framework to enhance risk governance structures and align with business development strategies and financial goals[80]. - The group has implemented a robust risk preference strategy, focusing on industries with mature business models and high asset quality[80]. - The group has adopted a proactive approach to risk management by adjusting industry strategies and enhancing client credit assessment models[80].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 1,965,771,000, representing a 13.5% increase compared to HKD 1,732,284,000 in the same period of 2023[3] - Total expenses increased by 24.2% to HKD (1,095,844,000) from HKD (882,255,000) year-on-year[3] - Operating profit rose by 29.5% to HKD 1,105,081,000, up from HKD 853,476,000 in the previous year[3] - Net profit for the period was HKD 1,339,860,000, a 22.9% increase from HKD 1,090,615,000 in the same period last year[3] - Basic and diluted earnings per share increased by 22.0% to HKD 0.216 from HKD 0.177[3] - The net profit for the first half of 2024 was HKD 1.340 billion, reflecting a year-on-year growth of 22.9%[11] - Total comprehensive income for the period was HKD 1,368,072,000, up 31.6% from HKD 1,039,474,000 year-on-year[57] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 43,787,885,000, a decrease of 3.0% from HKD 45,143,559,000 at the end of 2023[4] - Total liabilities decreased by 6.8% to HKD 30,121,138,000 from HKD 32,313,648,000[4] - Total equity increased by 6.5% to HKD 13,666,747,000 from HKD 12,829,911,000[4] - The company’s total assets as of June 30, 2024, amounted to HKD 43,787,885,000, a decrease from HKD 45,143,559,000 at the end of 2023[59] - The company's total liabilities decreased to HKD 30,121,138,000 from HKD 32,313,648,000, indicating a reduction of 6.8%[59] Returns on Assets and Equity - The average return on assets (ROA) improved to 6.0% from 4.5% year-on-year[5] - The average return on equity (ROE) increased to 20.2% from 15.7% in the previous year[5] - The annualized ROA improved to 6.0%, up 1.5 percentage points year-on-year, and the annualized ROE increased to 20.2%, up 4.5 percentage points year-on-year[11] Revenue Segmentation - The shipping comprehensive service revenue reached HKD 1.069 billion, up 19.9% year-on-year, while financial services revenue was HKD 896 million, an increase of 6.7%[11] - Revenue from the shipping integrated services segment was HKD 1,069,465,000, up 19.9% from HKD 891,868,000 in the previous year[67] - Revenue from financial services amounted to HKD 896,306,000, a slight increase of 6.7% from HKD 840,416,000 in the prior year[67] Operational Capacity and Fleet Management - The company added 2 new 1,100 TEU and 3 new 1,600 TEU feeder container ships to its fleet, enhancing its operational capacity[12] - The group added 10 new vessels in the first half of 2024, including 2 16,000 TEU container ships and 2 1,600 TEU container ships[14] - The operational fleet consisted of 125 vessels with an average age of approximately 3.73 years as of June 30, 2024[14] - The group has 23 vessels under construction, including 7 large LNG carriers, indicating a focus on clean energy[14][16] Cost Management and Efficiency - The group plans to focus on cost control and efficiency for operating assets, particularly in the container ship and product tanker markets[19] - Total expenses rose by 24.2% to HKD 1,095.8 million, with significant increases in financing costs (up 11.7% to HKD 515.6 million) and employee benefits (up 26.0% to HKD 31.0 million)[26] - The average cost of interest-bearing liabilities was 3.5% for the six months ended June 30, 2024, compared to 3.7% for the previous year[27] Financing and Debt Management - The average financing cost of interest-bearing debt was 3.5% in the first half of 2024, down 0.2 percentage points from the previous year[17] - The group maintained a robust liquidity management strategy, ensuring sufficient cash flow and credit facilities to meet debt obligations and business development needs[51] - The company has established deep strategic partnerships with major banks, maintaining a bank loan quota of approximately HKD 28.88 billion (about USD 3.71 billion), with an unused quota of approximately HKD 14.03 billion (about USD 1.80 billion)[47] Strategic Focus and Market Outlook - The global maritime trade volume is expected to grow by 2.3% in 2024, with shipping turnover volume projected to increase by 5.0%[9] - The company plans to focus on green and smart ship technology development, with an emphasis on LNG and methanol power as key fuel types for 2024[10] - The company aims to optimize its vessel asset structure, transitioning towards greener, younger, and higher value-added vessels[19] Employee and Governance - The group has a total of 84 employees as of June 30, 2024, with approximately 98% holding a bachelor's degree or higher[54] - The company has maintained compliance with corporate governance codes and has adopted most recommended best practices[85] - The board has established an audit committee consisting of three independent non-executive directors and two non-executive directors[89] Miscellaneous - The company has been recognized for its ESG governance, being the only leasing company listed in Fortune's China ESG Influence List for the second consecutive year[18] - The interim dividend declared is HKD 0.03 per share for the six months ended June 30, 2024, consistent with the interim dividend for the same period in 2023[86] - No significant events occurred after the reporting period up to the date of this announcement[89]

Investment Rating - The report maintains an "Accumulate" rating for China Ship Leasing (3877) [2][5]. Core Views - The company is expected to achieve a year-on-year net profit growth of 21-23% in the first half of 2024, exceeding market expectations, driven by the rising shipping market and an increase in fleet size [4][5]. - The company is the only leasing company affiliated with a shipyard in China, which provides it with a unique advantage in understanding ship operations [5]. - With a projected net profit of 2.2 billion HKD for 2024, the company’s PE ratio is only 4 times, indicating a potential high dividend yield if the dividend payout ratio increases to 50%, which could result in a dividend yield of 12% [5]. Financial Summary - The company’s revenue is projected to grow from 3.626 billion HKD in 2023 to 4.592 billion HKD in 2024, reflecting a 27% increase [6]. - The net profit is expected to rise from 1.912 billion HKD in 2023 to 2.192 billion HKD in 2024, marking a 15% increase [6]. - The PE ratio is forecasted to decrease from 4.9 in 2023 to 4.3 in 2024, indicating a low valuation [6]. Fleet and Operations - As of the end of 2023, the company operates a fleet of 128 vessels, with 102 under long-term leasing and 26 under short-term leasing [5][10]. - The company’s short-term leasing business is expected to benefit significantly from the high demand in the refined oil transportation market, with the average freight rates reaching historical highs in the first half of 2024 [5][11]. Capital Expenditure and Dividends - The company has seen a reduction in capital expenditures, with a dividend payout ratio that has started to increase, reaching 39% in 2023 [5][12]. - The company signed 18 new ship orders in 2023, a decrease from the previous year, indicating a cautious approach to future capital expenditures [5][12].