COSCO SHIPPING Ports (1199) H1 2025 earnings summary

Executive summary

• Achieved double-digit growth in throughput and profits in H1 2025, with total throughput reaching 74.3 million TEU (up 6.4% YoY), revenue rising 13.6% to $806 million, and net profit attributable to shareholders up 30.6% to $182 million, driven by strong domestic and overseas terminal performance.

• Overseas operations, especially in the Mediterranean, Middle East, and Europe, were major profit drivers, with notable growth at Piraeus and Spain terminals.

• The company declared a higher interim dividend of US1.928 cents per share (up 23.6% YoY), with a scrip option.

• CSP Chancay Terminal in Peru, the first smart port in South America, commenced full commercial operations in 1H2025.

Financial highlights

• Revenue increased 13.6% YoY to $806 million; gross profit up 10.3% to $219.1 million; EBITDA up 10.5% to $445 million.

• Net profit attributable to shareholders surged 30.6% YoY to $182 million; basic EPS up 23.6% to US4.82 cents.

• Gross profit margin was 27.2% overall; China subsidiary terminals GPM at 36.2%; overseas terminal revenue grew 25.9% with GPM up 3.3 pps.

• Net finance costs decreased by 14-15.2% due to effective cost control and debt optimization.

• Dividend payout ratio maintained at 40%.

Outlook and guidance

• Focus remains on expanding global channel opportunities, especially in Southeast Asia, South America, Africa, and the Middle East, with plans to accelerate global network expansion and invest in emerging markets.

• Guidance for full-year CapEx is $790 million, with $600+ million for fixed assets and $179 million for equity investments.

• Management expects global container business to decline 0.8% in Q3 and 1.7% in Q4 YoY, with demand cooling after a first-half peak.

• Long-term strategy centers on digitalization, green initiatives, supply chain integration, and sustainable development.

• External challenges include slowing global economic growth, trade frictions, high inflation, and geopolitical volatility.