Wan Hai's profit in the first 5 months exceeds the sum of the past 6 years

Affected by delays in shipping schedules, Wan Hai's profit declined in May, but the cumulative profit in the first five months has exceeded the sum of the past six years.
 
On July 2, Wan Hai announced its May self-settlement performance report. The net profit after tax for a single month was NT$5.432 billion (approximately RMB 1.256 billion), an annual increase of 17.54 times, but compared with the previous month's NT$61.52. 100 million yuan decreased by 11.7%.
 
According to the report, in April and May, Wan Hai made a total profit of NT$11.584 billion (approximately RMB 2.677 billion), which is close to 80% of the profit in the first quarter. In the first five months, Wan Hai accumulated NT$26.362 billion (approximately RMB 6.093 billion), which has exceeded the total of the last six years and continued to record highs.
 
Wan Hai is optimistic about the performance of the container shipping market and continues to expand its fleet to increase its capacity. In June of this year, Wan Hai entered the eastern US market for the first time and invested 10 2800-4000TEU container ships. Since March, Wan Hai has changed the US West Line to regular sailing and put in 6 or 7 container ships. Wan Hai pointed out that as new routes gradually add ships to the operation every week, the operating costs are recognized month by month, which is the main reason for the higher operating costs in May than in April.
 
In addition, global port congestion intensified in May, and shipping schedules were significantly delayed. Although revenue exceeded April, some cargo shipments and revenue will be deferred to next month, which also affected Wan Hai’s profit in May.
 
A few days ago, Wan Hai has added 12 3055TEU container ships to JMU, with a total transaction amount of 60.84-64.8 billion yen (approximately 5.49-585 million U.S. dollars). Analysts believe that the purchase of ships is expected to further drive the growth of Wan Hai's capacity and profit. Wan Hai has strong operating cash flow and can support ship purchase funds.
 
The benefits of a large number of shipbuilding orders for Wan Hai have gradually emerged. At present, Wan Hai has a total of 46 new ships and 11 second-hand ships, which will be put into market operation one after another. In July alone, Wan Hai will receive the fourth and fifth 2038TEU series container ships for deployment on the Japan-Vietnam/Malaysia route.
 
Analysts predict that the supply of capacity will remain tight in the second half of the year, and that freight rates are expected to continue to rise in the third quarter and remain high in the fourth quarter. Benefiting from the continuous increase in freight rates on the Eastern Route of the United States, Wan Hai's annual revenue and profit are expected to continue to rise with the opening of new routes.
 
Source: Sarah Yu, XINDE MARINE NEWS

Please Contact Us at：

media@xindemarine.com