Cosco

Cosco - 1Q 2018 Net Profit of $2.8m.
If you look further into their financial report, it stated "Other gains for Q1 2018 were mainly due to foreign exchange gain of $3.0 million".

Also the Share of profit of an associated company of $0.6 million was mainly due to share of profit from newly acquired 40% shareholdings in PT Ocean Global Shipping.

I think is still too early to see how the company will perform well for the next 1-3 quarters.
As also mentioned, the shipping revenue was decreased owing to reduce fleet of 3 bulk carriers.

I think investor may want to look further into their cash flow statement.
I think the cash flow is still showing negative cash in flow.

I think the company recently has taken on a loan of about $300+m.

NAV of 23.07 cents.

Not a call to buy or sell.

Please do your own due diligence.


Highlights: 

• The Group recorded net profit attributable to equity holders of $2.8 million for Q1 2018 as compared to a loss of $78.9 million for Q1 2017. In Q1 2018, the Group transformed into one of Singapore’s leading logistics management service providers with the acquisition of 100% interest in the equity of Cogent Holdings Limited.



• Group turnover from continuing operations increased by 256.1% to $40.6 million for Q1 2018 as compared to Q1 2017 mainly due to turnover of $32.1 million from newly acquired logistics businesses.

• Turnover from shipping revenue decreased owing to a reduced fleet of 3 bulk carriers.



• The increase in cost of sales, distribution, administrative and finance expenses were mainly due to the newly acquired logistics businesses.




COSCO SHIPPING International (Singapore) Co., Ltd., an investment holding company, provides integrated logistics management services in South and Southeast Asia. Its logistics services include transportation management, container depot management, automotive logistics management, warehousing, and property management services. The company also offers ship repair and marine engineering services. In addition, it transports dry bulk cargos comprising grains, iron ore, coal, steel, cement, and fertilizers through operating three bulk carriers. Further, the company engages in the property rental 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. COSCO SHIPPING International (Singapore) Co., Ltd. was incorporated in 1961 and is based in Singapore. COSCO SHIPPING International (Singapore) Co., Ltd. is a subsidiary of China Ocean Shipping (Group) Company.