Cosco Pacific H2 profit grows 81%
Cosco Pacific Ltd, Asia's third largest container-terminal operator, boosted second-half profit 81%, helped by surging Chinese exports and the sale of a stake in a bank.
Net income rose to US$279.3mil from US$154.7mil a year earlier. The figure was derived by subtracting first-half results from full-year earnings released yesterday.
Cosco Pacific booked a US$90.7mil gain after it sold a stake in Chong Hing Bank Ltd to focus on sea-cargo. The company follows larger rivals Hutchison Port Holdings Ltd and PSA International Pte in posting higher profit after a 26% jump in Chinese exports last year boosted global trade.
“The company will have to make more acquisitions to keep up its growth rate,'' said Jimmy Lam, a Hong Kong-based analyst at BOC International Holdings Ltd. “The rate of trade growth may slow slightly this year.''
Cosco Pacific's 19 global container terminal ventures boosted total volume 22% last year to 39.8 million boxes, helped by the addition of ventures in the Chinese ports of Ningbo and Guangzhou, as well as in Egypt. Traffic growth slipped to 19% in the first two months of this year.
“The US subprime problems are certainly having an effect on China's exports,'' Xu Minjie, the Hong Kong-based company's managing director, told reporters in the city yesterday. “Shipments to the US are slowing, but exports to Europe are still growing.''
The company will more than double its investments in new terminals to US$605mil this year, predominately dry-bulk facilities, Xu said. The Baltic Dry Index, a measure of rates for shipping iron ore, coal and other bulk cargos, has risen 40% in the past year on China's demand for raw materials.
Full-year net income rose 47% to US$427.8mil, Cosco Pacific said in a Hong Kong stock exchange statement yesterday.
Net profit from the container-terminal business rose 28% to US$128.3mil. Sales, mainly derived from container leasing, was little changed at US$298.9mil.
Profit from the company's container leasing and sales business fell 36% to US$118mil after it sold fewer boxes. The company, the operator of the world's second-largest container-leasing fleet, posted a full-year profit of US$26mil from selling boxes, 69% less than a year earlier.
“Container sales were just so-so,'' said Stella Kei, a Hong Kong-based analyst at UOB Kay Hian Ltd. “They will fall further this year on the US economy.''
Cosco Pacific, a Hang Seng Index company, rose 6% to HK$16.96 at the close in Hong Kong. The stock is down 18% this year, compared with a 12% drop for the benchmark index.
Parent China Cosco Holdings Co, Asia's largest shipping company by market value, rose 3.3% to HK$20.65.
Cosco Pacific sold its 20% stake in Chong Hing Bank to an affiliate for HK$2.1bil in November.
It also had a one-time gain of US$55.2mil last year from funds it had set aside to cover put options in an affiliate. The company didn't have to act on these pledges to buy shares as the stock traded above the trigger price.
Net income rose to US$279.3mil from US$154.7mil a year earlier. The figure was derived by subtracting first-half results from full-year earnings released yesterday.
Cosco Pacific booked a US$90.7mil gain after it sold a stake in Chong Hing Bank Ltd to focus on sea-cargo. The company follows larger rivals Hutchison Port Holdings Ltd and PSA International Pte in posting higher profit after a 26% jump in Chinese exports last year boosted global trade.
“The company will have to make more acquisitions to keep up its growth rate,'' said Jimmy Lam, a Hong Kong-based analyst at BOC International Holdings Ltd. “The rate of trade growth may slow slightly this year.''
Cosco Pacific's 19 global container terminal ventures boosted total volume 22% last year to 39.8 million boxes, helped by the addition of ventures in the Chinese ports of Ningbo and Guangzhou, as well as in Egypt. Traffic growth slipped to 19% in the first two months of this year.
“The US subprime problems are certainly having an effect on China's exports,'' Xu Minjie, the Hong Kong-based company's managing director, told reporters in the city yesterday. “Shipments to the US are slowing, but exports to Europe are still growing.''
The company will more than double its investments in new terminals to US$605mil this year, predominately dry-bulk facilities, Xu said. The Baltic Dry Index, a measure of rates for shipping iron ore, coal and other bulk cargos, has risen 40% in the past year on China's demand for raw materials.
Full-year net income rose 47% to US$427.8mil, Cosco Pacific said in a Hong Kong stock exchange statement yesterday.
Net profit from the container-terminal business rose 28% to US$128.3mil. Sales, mainly derived from container leasing, was little changed at US$298.9mil.
Profit from the company's container leasing and sales business fell 36% to US$118mil after it sold fewer boxes. The company, the operator of the world's second-largest container-leasing fleet, posted a full-year profit of US$26mil from selling boxes, 69% less than a year earlier.
“Container sales were just so-so,'' said Stella Kei, a Hong Kong-based analyst at UOB Kay Hian Ltd. “They will fall further this year on the US economy.''
Cosco Pacific, a Hang Seng Index company, rose 6% to HK$16.96 at the close in Hong Kong. The stock is down 18% this year, compared with a 12% drop for the benchmark index.
Parent China Cosco Holdings Co, Asia's largest shipping company by market value, rose 3.3% to HK$20.65.
Cosco Pacific sold its 20% stake in Chong Hing Bank to an affiliate for HK$2.1bil in November.
It also had a one-time gain of US$55.2mil last year from funds it had set aside to cover put options in an affiliate. The company didn't have to act on these pledges to buy shares as the stock traded above the trigger price.