Guoxin Securities·2024-04-01 16:00Investment Rating - The investment rating for COSCO Shipping Energy Transportation Co., Ltd. (600026.SH) is "Buy" [1][4]. Core Views - The report highlights significant growth in the foreign trade oil transportation sector, with expectations for a favorable oil transportation market in 2024 [1][9]. - In 2023, the company reported a revenue of 22.09 billion yuan, an increase of 18.4% year-on-year, and a net profit of 3.35 billion yuan, up 130.0% year-on-year [1][6]. - The foreign trade oil transportation segment was the main driver of growth, achieving a revenue of 14 billion yuan, a 22.9% increase, and a gross profit of 4.15 billion yuan, up 184.6% [1][9]. Summary by Sections Financial Performance - In Q4 2023, the company generated a revenue of 5.56 billion yuan, a decrease of 11.3% year-on-year, and a net profit of -360 million yuan, down 114.4% [1][6]. - The company plans to distribute a cash dividend of 1.67 billion yuan, resulting in a cash dividend payout ratio of 49.84% for 2023 [1][6]. Business Segments - The foreign trade oil transportation segment's average daily earnings (TCE) for VLCC-TD3C (Middle East to Far East route) reached 35,416 USD/day, a year-on-year increase of approximately 110% [1][9]. - The domestic oil and LNG business showed steady growth, with domestic oil and refined oil transportation volume reaching approximately 90.37 million tons, generating revenue of 6.2 billion yuan, a 4.9% increase [1][9]. Future Outlook - For 2024, the report anticipates a simultaneous increase in volume and price for foreign trade oil transportation, with a projected global oil transportation supply-demand gap of 4.1% [1][9]. - The company’s earnings forecasts for 2024-2025 have been adjusted to 6.15 billion yuan and 6.86 billion yuan, respectively, with a new profit forecast for 2026 set at 7.4 billion yuan [1][9].