20140812-招商证券_香港_-OOIL__316_HK,_HK_40.9,_BUY,_TP_HK_51.0__announced_1H14_results_13页_503kb

CMS(HK) Research Highlights Summary

Core Content

• Company Performance: OOIL (316 HK) reported its 1H14 results, showing strong financial performance compared to the same period in 2013.
• Revenue Growth: The company's total revenue increased by 7.0% to US$3.24 billion, with trade routes revenue up 4.3% YoY.
• Lifting and Revenue per TEU: Lifting increased by 10.1% YoY, but average revenue per TEU decreased by 5.3% YoY.
• Profitability: Profit attributable to equity holders rose significantly to US$180 million in 1H14, compared to a loss of US$15 million in 1H13. EPS was US$0.29 (2013: -US$0.024).
• Dividend Announcement: An interim dividend of US$0.075 was announced, up from nil in 2013.
• Market Outlook: The company believes that freight rates for European and American routes have room for growth, but the sustainability of this growth depends on the supply and demand balance.
• Capacity Expansion: The company delivered two 13,000 TEU vessels in 1H14, resulting in a 3% YoY capacity increase. No new vessel orders were placed during the period.
• Cost Efficiency: Management emphasized a disciplined approach to improve cost efficiency and differentiate services.

Key Financial Metrics

Comments and Analysis

Profit Growth Drivers

1. Demand in Container Shipping Market: Steady demand in major European and American markets supported revenue growth.
2. Fuel Cost Reduction: Bunker prices dropped by 5% YoY, leading to an 8% decrease in fuel costs, which improved gross margin to 9.8% from 6.7%.
3. Property Investment Revaluation: A net fair value gain of US$9.654 million was recorded on the revaluation of "Wall Street Plaza", compared to a net loss of US$4.56 million in 1H13. Other income increased by 178% YoY to US$90 million.

Market and Economic Outlook

• Inflation Trends: CPI for July 2014 increased by 2.3% YoY and 0.1% MoM, with non-food prices rising slightly due to summer travel and recreation peak.
• PPI Trends: PPI for July 2014 fell by 0.9% YoY and 0.1% MoM, reflecting four consecutive months of narrowing negative growth. The carryover effect and global bulk commodity prices are expected to limit PPI recovery.
• Economic Outlook: Inflation is unlikely to rise in the short term due to economic upturn and negative output gap. The carryover effect will drop more significantly in August, and inflation could trend downward in 2H14.

Stock Market Indices

Global Market Data

Exchange Rates

Company Events

• Interim Results: Multiple companies announced their interim results and dividend announcements on August 12, 2014.

Research Coverage

Auto & Auto Parts

Oil and Gas

Property

Technology, Media & Telecom

Textile & Garment

Summary

The document outlines key financial results for OOIL (316 HK) for 1H14, highlighting revenue growth, profitability improvement, and dividend announcement. It also includes market indices, global commodity prices, and exchange rates, providing insights into the broader economic environment. CPI and PPI data for July 2014 is analyzed, showing moderate CPI growth and declining PPI, with expectations of continued inflation trends. The research coverage includes diversified sectors, such as Auto, Oil and Gas, Property, Technology, and Textile & Garment, offering a comprehensive view of company performance and market valuation.