$ZIM Integrated Shipping (ZIM.US)$🎯 023.5.26 Review: Curren...

New data: 2023Q1

Revenue declined significantly by 63%, operating profit changed from a profit of 2.24 billion last year to a loss of 0.014 billion, with a net loss of 0.058 billion.

The profit statement shows that revenue declined by 63% to 1.37 billion, and the main operating costs only decreased by 5.9% to 1.32 billion, while operating expenses decreased by 6.9% to 0.068 billion. This indicates that the company's expenses are very rigid, and if quarterly revenue cannot reach 1.4 billion, it will face operating profit losses.

Interest expenses doubled to 0.051 billion, indicating a deteriorating cash situation for the company. If revenue cannot exceed 1.45 billion, net income will also be in deficit.

This kind of profit statement is both good and bad. The advantage is that once revenue exceeds the breakeven point, profits will increase without any obstacles. The disadvantage is that it is a mirror image of the advantage.

The balance sheet shows that the asset-liability ratio in the first quarter increased from 49.3% to 55.9%, a significant increase of 6.6%. However, compared to the same period last year, it decreased from 65.4% to 55.9%.

Compared to the same period last year, current assets decreased significantly by 40%, while non-current assets increased by 29.5%, resulting in a 6.4% decrease in total assets.

The increase in non-current assets is mainly due to investments and prepaid expenses increasing from 0.32 billion to 1.367 billion.

On the liability side, current liabilities decreased by 35.5%, while non-current liabilities increased by 4.3%. A large amount of borrowing has been transferred to lease liabilities, which may result in a decrease in interest expenses in the future.

Net assets increased by 19.3% to reach 5.08 billion.

From the perspective of the balance sheet, the combination of long and short-term assets and liabilities is relatively healthy.

In the cash flow statement for 2023Q1, the operating net cash flow is 0.174 billion, while the net cash flow generated from investment product transactions is 1.24 billion. The net investment amount is a net inflow of 1.21 billion, and shareholders' earnings continue to increase.

Overall, the company has a net asset of 5.08 billion, with quarterly fixed expenses of 13 + 0.7 + 0.5 = 1.42 billion, totaling 5.26 billion for the whole year. In terms of revenue, it was 3.25 billion in 2018, 3.3 billion in 2019, and 4 billion in 2020. Taking the average of 3.5 billion, the annual loss is about 1.74 billion. The net assets can be supported for approximately 3 years, and the risk does not seem to be high. It can still be considered as a small allocation of high beta stocks to increase the potential return of the investment portfolio.