COSCO Shipping Energy Transportation is a global leader in the energy transportation industry, with a tanker fleet ranked first in the world in 2021. The company mainly engages in LNG transportation and the transportation of crude oil and product oil along the coast of China and across the world. The global crude oil transportation business is expected to see a boom cycle in the next few years due to optimized supply and stable demand. The average age of current oil tankers is very aging globally, and the ratio of newly ordered VLCCs in the industry to current VLCCs whose age exceeds 15 years has reached a record low. Delivery of new tanker orders is hard to be guaranteed since the global shipbuilding platforms are extremely full. In addition, environmental protection regulations put a limit on sailing speed, thus reducing the number of ships that can be built. The company's earning fluctuation mainly comes from the global crude oil transportation business, while profit of LNG transportation, domestic crude oil, and refined oil transportation businesses proves to be relatively stable. The company is expected to have a revenue of 19478.0 million RMB in 2024E, with a net profit of 4060.6 million RMB and an EPS of 0.85 RMB. The P/E ratio is expected to be 12.
