Cosco

Cosco - COSCO Shipping International (Singapore) Co., Ltd., an investment holding company, provides ship repairing, ship building, and marine engineering services primarily in the People’s Republic of China and Singapore. The company’s services include ship repair, conversion, and jumbolisation; new builds; and oil rig repair and construction services. It also transports dry bulk cargos, such as grain, iron ore, coal, steel, cement, and fertilizer through 12 dry bulk carriers with a capacity of 698,306 dwt serving shipping companies and cargo owners. In addition, the company offers various services comprising document preparation, collection of freight, cargo operation, vessel husbanding, customs declaration, port authority coordination, administration and settlement of cargo claims, transshipment management, bunkering services, container handling, cargo canvassing, and other value-added services. Further, it provides container repairs and other services; and fabrication works services, as well as produces marine outfitting components. Additionally, the company offers property management services; overhaul, repair, commissioning, and spare-parts replacement services for governors, turbochargers, and engine fuel systems; ship corrosion control services; and design, manufacture, sale, and technical services relating to vessels and industrial instruments, as well as trades and invests in properties. It is also involved in owning and chartering ships; providing shipyard financing; and marketing and selling shipbuilding and offshore project activities. The company was formerly known as COSCO Corporation (Singapore) Limited and changed its name to COSCO Shipping International (Singapore) Co., Ltd. in April 2017. The company was incorporated in 1961 and is based in Singapore. COSCO Shipping International (Singapore) Co., Ltd. is a subsidiary of China Ocean Shipping (Group) Company.


Recently, it has managed to divest off the losing Ship building business and made a once-off gain to bring the company back to profitable level. 

Cosco Shipping Heavy Industry Co., Ltd. completed acquisition of 51% stake in Cosco Shipyard Group Co., Ltd., a 50% stake in Cosco (Nantong) Shipyard Co. Ltd. and a 39.1% stake in Cosco (Dalian) Shipyard Co., Ltd. from Cosco Shipping International (Singapore) Co., Ltd. (SGX:F83).

Source:
Type: M&A Transaction Closings
From: 22/Dec/2017

It has also went on to acquired COGENT HOLDINGS LIMITED - for each CHL Share: S$1.02 in cash (the “Offer Price”).

NAV - 0.115 , P/NAV 4.037

We are now going to take a look at the Balance sheet items as follows:-

ROE - Return of Equity has been showing negative value for the past 3 years ( 2015 -2017) of which i think is not not in a good financial status.

Net Income margin has also been booking in a negative figure of -16.19 for 2015, -18.2 for 2016 with the exception for 2017 with a positive figure due to once-off divestment gain. without that, i think it would still be in the negative position.

Next we can take a look at the Cash flow for Operations . It has been showing a negative cashflow for past 4 years from 2013 to 2016. 2017 has returned back to positive level could be due to the divestment gain.

Net change in cash has also been showing a negative position.

The EPS has also been showing negative value for past 2 years from 2015 to 2016. 2017 it has managed to return back to profitability with a positive eps of 5.4 cents.

For financial status, we may have to monitor and observe how it fares for the next 2-3 quarters after the acquisition of Cogent Holdings ( a warehouse & logistics company).
I think is still too early to have a clearer picture of the company financial health status .

I think is good that they are now focusing into Shipping,Warehousing & Logistics which could provide the next growth to lead the company into profitability. 

From TA point of view, it has a beautiful breaking out moment at 48.5 cents on 14th Mar 2018 and closed well at 51.5 cents. It went on to hit the high of 53.5 cents the next day. Looks rather bullish!
 The price has pulled-back to 50.5 cents on 16th Mar + low volume which is rather healthy.

Look for a rise to re-test the recent high of 53.5 cents. Stop-loss at 48 cents. Target price 61 cents.
not a call to buy or sell.
dyodd.