SITC International Holdings Company (1308) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 rose 3.8% year-over-year to US$1,300.5 million, driven by a 10% increase in container shipping volume despite a 5.3% decrease in average freight rates.

• Net profit attributable to shareholders increased 12.8% year-over-year to US$352.8 million, with gross profit margin improving from 26.5% to 31.0%.

• Basic earnings per share rose to US13.25 cents from US11.70 cents.

• Interim dividend declared at HK72 cents (US9.22 cents) per share, up from HK60 cents (US7.66 cents) last year.

• The company operated 108 vessels (99 self-owned, 9 chartered) with a total capacity of 170,380 TEU as of 30 June 2024.

Financial highlights

• Cost of sales decreased 2.5% to US$897.9 million, mainly due to lower chartering vessel costs.

• Gross profit increased 21.2% to US$402.6 million.

• Finance costs fell to US$7.3 million from US$10.5 million, reflecting lower average borrowings.

• Cash and cash equivalents stood at US$507.5 million as of 30 June 2024, up 21.9% year-over-year.

• Gearing ratio improved to 9.5% from 13.4% at year-end 2023; current ratio increased to 1.5 from 1.2.

Outlook and guidance

• Six new container vessels are expected to be delivered in the second half of 2024.

• Plans to continue expanding service coverage, increase voyage frequency, and invest in fleet and logistics projects, funded by internal resources and bank borrowings.

• Focus on expanding high-frequency, high-density logistics network in Asia and continued investment in digitalization and green initiatives.