Morningstar

Morningstar, Inc.

Equity Bottom-Up

We are dropping analyst coverage of Cosco Shipping Energy Transportation. We provide broad coverage of more than 1,500 companies across more than 90 industry groups and adjust our coverage as necessary based on client demand and investor interest.

Cosco Shipping Energy Transportation Co. Ltd. (H)

Despite a strong start for no-moat Cosco Shipping Energy Transportation’s, or CSET’s, first-quarter 2019 results, we think the firm is fairly valued and we keep our fair value estimate of HKD 4.20. First-quarter 2019 net profit of CNY 428.1 million under PRC GAAP was a sharp turnaround from a net loss of CNY 86.5 million a year ago. The results beat our expectation largely on the back of higher freight rates, accounting for 40% of our full-year estimate, but we maintain our earnings forecasts…

No-moat Cosco Shipping Energy Transportation, or CSET, guided that 2018 net profit will decline by 92%-97% year over year to CNY 50 million to CNY 150 million. The results were below our earnings forecast of CNY 327 million. That said, we think the results were still commendable given that it has reversed from first nine-month’s net loss of CNY 268 million, implying a fourth-quarter 2018 net profit of CNY 318 million to CNY 418 million. We have already factored in stronger fourth quarter results…

No-moat rated Cosco Shipping Energy Transportation’s cumulative nine-month 2018 net loss of CNY 268 million was below our forecast due to slower-than-expected recovery in freight rates. That said, we have recently seen recovery in tanker freight rates going into the seasonally strong fourth quarter. As such, we keep our fair value estimate at HKD 3.42. We believe Cosco's share price is still overvalued as we think it is still early to expect a sustained recovery in freight rates post the peak…

No-moat-rated Cosco Shipping Energy Transportation’s, or CSET’s, first-half 2018 net loss of CNY 237 million was in line with the negative profit warning announced in July. Nonetheless, given that current tanker rates remain weak with no visible signs of improvement, we reduce our 2018-19 earnings forecasts by 22%-43%. As a result, our fair value estimate is cut to HKD 3.42 from HKD 3.58. We think upside for CSET’s share price is limited in the near term, as tanker rates are likely to remain…

China

COSCO SHIPPING Energy Transportation Co., Ltd. offers marine shipping services. The Company provides refined oil transportation, crude oil transportation, and other services. COSCO SHIPPING Energy Transportation also ships iron ores, dry bulks, coal, and other products.

Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00