COSCO Shipping International (Singapore) Co.(formerly: COSCO Corporation (Singapore))

[Behappyalways]

Not vested

COSCO Shipping sees better 2017 as Hanjin collapse pushes up rates
http://www.hellenicshippingnews.com/cosc...-up-rates/

[cyclone]

On 20 April 2017, the company changed its name from "COSCO Corporation (Singapore) Limited" to "COSCO Shipping International (Singapore) Co., Ltd."

The Company has arranged with SGX-ST to change its trading counter name on the Mainboard of SGX-ST. The new trading counter name will be “COSCO SHP SG” and will take effect at 9.00 a.m. on 25 April 2017.

[Nebula]

Cosco just announced the disposal of their shipyards today.

It seems like good news for its shareholders, according to the announcement, NTA will increase from 14.58 to 24.59 cents based on 31 Dec 16.

However, what is curious is that the price of the sale is based on NAV, which basically comes up to $297 million. In the financial effects illustration, the company expects a gain of $285 million.

"For illustrative purposes, assuming that the Proposed Disposal is completed on 31 March 2017, the excess of the proceeds (after deducting capital gains tax) over the carrying value of the Sale Shares as at 31 March 2017 of S$3.93 million is approximately S$285.35 million and the gain on the Proposed Disposal (after deducting capital gains tax and reclassification of translation reserves and fair value reserves) is approximately S$360.07 million." 

I'm a little confused, how does this work?

[karlmarx]

All of its ship building activities, along with its Chinese shipyards, will be sold to its parent. The balance sheet should be quite clean thereafter, assuming the majority of the debt belongs to the Chinese shipyards.

What will be left will be the shipping business, which consists of 8 ships and is probably still loss making, and a ship repair yard in Singapore.

This is probably why they changed their name on 20 April 2017.

Since the intention is to use the sales proceeds to acquire the business, prospective investors should wait to find out the quality of asset they are acquiring, and at what price. At current market cap of about $615m, which is at some 20% premium to book value post disposal, I'd say that investors are optimistic about the unknown acquisition that COSCO Singapore has in store.

[YMPL]

Cosco just announced the disposal of their shipyards today.

It seems like good news for its shareholders, according to the announcement, NTA will increase from 14.58 to 24.59 cents based on 31 Dec 16.

However, what is curious is that the price of the sale is based on NAV, which basically comes up to $297 million. In the financial effects illustration, the company expects a gain of $285 million.

"For illustrative purposes, assuming that the Proposed Disposal is completed on 31 March 2017, the excess of the proceeds (after deducting capital gains tax) over the carrying value of the Sale Shares as at 31 March 2017 of S$3.93 million is approximately S$285.35 million and the gain on the Proposed Disposal (after deducting capital gains tax and reclassification of translation reserves and fair value reserves) is approximately S$360.07 million." 

I'm a little confused, how does this work?

The disposed assets are carried at cost less depreciation & impairment. The "NAV" value is pre-sale valuation done by an independent valuer. The valuer's valuation is about S$323m, with selling price of S$297m. The discount is only 8% which is good for the company, I reckon.

Based on the statement, the carry value is only about S$4m, thus after tax proceed is about S$285m. The gain is by offsetting the previous reserve, esp. the translation reserve.

I agreed with Karlmarx, the company balance sheet will become much healthier after the disposal, since most liabilities should go along with the disposal. The current share market valuation should be most and less fair now. The future outlook is heavily depend on the "future investments". I reckon, it is wise to wait till a clearer picture emerges.

http://infopub.sgx.com/FileOpen/COSCO-20...eID=452282

(not vested)

[cyclone]

COSCO expands in Malaysia to create a consolidated logistics platform and provide its customers with a one-stop integrated service

COSCO SHIPPING International (Singapore) Co. today announced several new developments in Malaysia to further strengthen and develop the Company’s operations in Malaysia and to provide its customers with one-stop integrated logistics services :
* Proposed acquisition of 80% shares of Guper Integrated Logistics Sdn. Bhd. (“GIL”), Gem Logistics Sdn. Bhd. (“Gems”) and Dolphin Shipping Agency Sdn. Bhd. (“DSA”)
* Proposed acquisition of 80% shares of East West Freight Services Sdn. Bhd. (“EWF”)
* Proposed lease of land at Port Klang, Malaysia to construct a warehouse of approximately 300,000 square feet
* Proposed acquisition of assets by SH Cogent Logistics Sdn Bhd (“Cogent Malaysia”) from Golden Logistics & Storage Sdn Bhd (“Golden Logistics”)

More details in https://links.sgx.com/FileOpen/Cosco_Med...eID=574304

[blackclock]

Cosco is an important member of Ocean Alliance. If Cosco move the hub to Malaysia, will other partners like CMA CGM & Evergreen follow?
How much will PSA be affected by the shift?


Malaysia invites China's Cosco to set up transshipment hub

PETALING JAYA: Transport Minister Anthony Loke will pay a courtesy call to Cosco Shipping Line in China next month, in a bid to invite the shipping line to make Malaysia its transshipment hub in South-East Asia.

"In maritime industry, it is not just about port cooperation. What we need is a strong shipping network. Therefore, I would like to invite the Chinese government, in particular Cosco Shipping, to make Malaysia your major transshipment hub in Southeast Asia," he said in his speech at the opening ceremony of the International Forum on New Inclusive Asia.

"I will pay an official visit to Beijing and will pay a courtesy call to Cosco in January next year," he said.

Later at the press conference, Loke said that he has contacted the Chinese embassy related to his visit to China, and is in the midst of arranging his schedule.

He also said it is important to enhance trade between the two countries.

He explained that once Malaysian ports become transshipment hub, there will be more shipping lines call to the ports, bringing down the cost of shipping.

China Cosco Shipping Corp Ltd, which was formed as a result of the merger between Cosco Container Lines and China Shipping Container Lines, has emerged as China’s biggest container line and the fourth largest in the world.

https://www.thestar.com.my/news/nation/2...ipment-hub