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, partially offset by 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%.

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

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

Financial highlights

• Gross profit increased to US$402.6 million from US$332.2 million year-over-year.

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

• Other income and gains dropped to US$20.2 million from US$58.8 million, reflecting lower gains on vessel disposals and derivative instruments.

• Finance costs fell to US$7.3 million from US$10.5 million due to reduced borrowings.

• Net cash flows from operating activities were US$394.3 million, up from US$368.2 million year-over-year.

Outlook and guidance

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

• The company plans to continue investing in vessels, containers, and logistics projects, funded by internal resources and bank borrowings.