$ZIM Integrated Shipping (ZIM.US)$🎯 023.5.26 Review current...

New data: 2023Q1

Revenue fell sharply by 63%. Operating profit changed from last year's profit of 2.24 billion dollars to loss of 14 million yuan, and net profit loss of 58 million yuan.

The profit statement shows that revenue fell 63% to 1.37 billion, main business costs fell only 5.9% to 1.32 billion, and operating expenses fell 6.9% to 68 million. This shows that the company's expenses are very rigid. If quarterly revenue does not reach 1.4 billion dollars, it will face a loss in operating profit.

Interest expenses doubled to 51 million, indicating that the company's cash situation had deteriorated. If revenue does not exceed 1.45 billion dollars, then net profit will also be lost.

This kind of profit statement is both good and bad. The advantage is that once revenue exceeds the profit and loss line, profit will increase without resistance; the disadvantage is a mirror image of the benefits.

The balance sheet shows that the balance ratio for the first quarter increased from 49.3% to 55.9%, a sufficient increase of 6.6%, but fell from 65.4% to 55.9% year-on-year.

On a year-over-year basis, current assets fell sharply by 40%, non-current assets increased by 29.5%, and total assets fell 6.4%.

The increase in non-current assets is mainly due to an increase in investments and prepayments from $320 million to $1,367 million.

Debt-side current liabilities fell 35.5%, non-current liabilities increased 4.3%, and large amounts of borrowing were transferred into leasing liabilities, and subsequent interest expenses may fall.

Net assets increased 19.3% to $5.08 billion.

Judging from the balance sheet's combination of the long and short term, it is still relatively healthy.

The 2023Q1 cash flow statement had a net operating volume of $174 million. Because of the net cash flow generated by investment product transactions of $1.24 billion, the net investment amount instead had a net inflow of $1.21 billion, and shareholder surpluses were still increasing.

Overall, the company has net assets of 5.08 billion dollars, quarterly fixed expenses of 13+0.7 +0.5 = 1.42 billion dollars, and 5.26 billion dollars for the whole year. From a revenue perspective, $3.25 billion in 2018, $3.3 billion in 2019, and $4 billion in 2020, if you take the average of $3.5 billion, then the annual loss is about $1.74 billion, and net assets can take about 3 years. It seems that the risk is not that great, but it can still be used as a small allocation of high-beta stocks to increase the potential return of the investment portfolio.