Jinwu Financial News | Goldman Sachs Research Report said that COSCO SHIPPING Port (01199)'s net profit for the first quarter of this year was US$62.9 million, an increase of 1% over the previous year, which is basically in line with this forecast. Total throughput in the first quarter increased 10% year over year, exceeding 6% of China's total throughput. Management attributed this to overseas demand bottoming out and entering the replenishment cycle. However, the average unit sales price (ASP) of the port fell by about 10% in US dollars due to the lower average selling price of domestic containers and the depreciation of the RMB by about 5% in the first quarter.
According to the bank, the gross margin of the Chinese subsidiary port fell 0.3 percentage points, mainly due to the increase in depreciation costs of the Wuhan plan, while the gross margin of the overseas subsidiary fell 2.9 percentage points, mainly due to the drop in throughput of Greece's Piraeus Container Terminal (Piraeus Container Terminal) due to the Red Sea turmoil.
The bank lowered the company's 2024 and 2025 earnings per share forecast by 1% and 3%, but raised the 2026 earnings forecast per share by 1%. The target price increased slightly from HK$6.5 to HK$6.6. Maintain a “buy” rating.