2024-04-28 03:02Investment Rating - The report maintains a "Buy" rating for COSCO Shipping Energy Transportation Co., Ltd. (600026) [2] Core Views - The company's Q1 2024 net profit attributable to shareholders reached 1.236 billion yuan, a year-on-year increase of 12.76%, with a non-recurring net profit of 1.236 billion yuan, up 39.81% year-on-year, aligning closely with the pre-report expectations [2] - The VLCC (Very Large Crude Carrier) business continues to be the main growth driver, while the non-VLCC foreign trade tanker business has shown significant performance due to geopolitical conflicts [2] - The increase in ship prices has led to a rise in the company's replacement costs, providing a downward safety margin [2] - The current oil transportation market is in a long-term upward cycle, supported by supply scarcity and geopolitical factors, with potential for price increases despite short-term seasonal adjustments [2] - The report maintains profit forecasts for 2024-2026, projecting net profits of 6.9 billion, 8.1 billion, and 9.2 billion yuan respectively [2] Financial Summary - Total revenue for 2023 was 22.091 billion yuan, with a projected increase to 24.505 billion yuan in 2024, reflecting a year-on-year growth rate of 10.9% [3] - The net profit attributable to shareholders for 2023 was 3.351 billion yuan, expected to rise to 6.909 billion yuan in 2024, indicating a growth rate of 106.2% [3] - The gross profit margin is projected to increase from 29.9% in 2023 to 37.9% in 2024 [3] - The return on equity (ROE) is expected to improve from 9.7% in 2023 to 17.4% in 2024 [3] Market Data - As of April 26, 2024, the closing price of the stock was 15.76 yuan, with a market capitalization of 54.762 billion yuan [4] - The stock has a price-to-book ratio of 2.1 and a dividend yield based on the most recent dividend announcement [4] Asset and Liability Overview - As of March 31, 2024, the company's debt-to-asset ratio stood at 46.95% [5] - The total share capital is 4.771 billion shares, with 3.475 billion shares in circulation [5]