SITC(HK:01308) Ge Long Hui·2025-08-08 02:40Core Viewpoint - SeaLand International Holdings Limited has established itself as a leading container shipping company in Asia over the past 30 years, with a strong focus on integrated logistics networks and a significant fleet of container ships [1][2]. Group 1: Company Overview - The company was founded over 30 years ago and is currently a leader in the container shipping sector in Asia [1]. - The controlling shareholder is founder Yang Shaopeng, who, along with his family trust, holds 41.25% of the company's shares [1]. - As of the end of 2024, the company operates 114 container ships, with 100 owned vessels, accounting for approximately 88% of its fleet [1]. Group 2: Financial Performance - In 2024, the company achieved a revenue of $3.06 billion and a net profit attributable to shareholders of $1.03 billion, representing year-on-year increases of 25.9% and 93.5%, respectively [1]. - The company's debt-to-asset ratio stands at 24.3%, a decrease of 2.9 percentage points year-on-year [1]. - The company’s container throughput reached 3.57 million TEUs in 2024, a year-on-year increase of 10.7%, with an average freight rate of $721 per TEU, up 15.7% year-on-year [2]. Group 3: Market Dynamics - The supply-demand structure in the Asian container shipping market is improving, supported by high trade volumes among major developed economies and expanding trade between China and ASEAN [1]. - The total import and export volume between China and ASEAN is expected to grow by 8.2% year-on-year in the first half of 2025, with container shipping volume to Southeast Asia increasing by 19.7% [1]. Group 4: Competitive Advantage - The management team has an average of over 28 years of experience in the shipping industry, enabling the company to navigate through cycles effectively [2]. - The company focuses on differentiated services through an integrated logistics network in the Asian region [2]. - The company has a low operating cost structure, with a calculated cost per container of $463 per TEU in 2024, down 8.4% year-on-year [2]. Group 5: Investment Outlook - The company is projected to generate revenues of $3.285 billion, $3.353 billion, and $3.406 billion from 2025 to 2027, with year-on-year growth rates of 7.4%, 2.1%, and 1.6%, respectively [2]. - Net profit attributable to shareholders is expected to be $1.122 billion, $1.072 billion, and $1.011 billion over the same period, with year-on-year changes of 9.1%, -4.4%, and -5.7% [2]. - The company has a strong track record of shareholder returns, with cumulative dividends of HKD 38.9 billion from 2010 to 2024, averaging a payout ratio of 78% [2].