Despite strong share price performance YTD, CSET remains cheap on PER and P/B ratios. VLCC market undersupply and growth in LNG transportation will drive profitability and potential upside.
What is covered in the Full Insight:
CSET's YTD performance and valuation metrics
Market outlook for oil transportation
Potential earnings boost from LNG transportation
Financial position and payout implications
Upcoming Q24 results and its impact on share price
Boomeranged on Mon, 29 Apr 2024 08:52
CSET’s 1Q24 earnings of Rmb1.24bn (+12.8%) are better than we expected as the lower spot VLCC market has had no impact on profitability. Excluding non-recurring items, net profit grew an even more impressive 39.8%, with gross margin expanded 1.1pp. Along with better profitability, gearing has edged down 2.4pp in the last three months. Its 6x PER and 8.5% dividend yield for FY24 stayed attractive.
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