This is the value of China COSCO (601919.SH) 2011 EVA (economic value added), in the A-share companies to be the last one behind 1948 ranking than the number-one oil (included in the ranking a total of 1949), more than $ 10 billion company is the only one EVA negative.
This means that China Ocean destruction over the past year, up to 10.9 billion yuan worth of the A shares of a well-deserved “the worst management company.
is worth noting that, “investors” Top EVA ranking Chinese ocean-going three times in a row in the value destruction of the ranks, but at the last one. This reporter contacted the company secretaries, but was removed several times to negotiate, as of press has not been back.
million deficit last year, hundreds of China Ocean fate befell the culprit, then blindly by the company in the industry crisis before the arrival of large-scale investment, leading to the destruction of its value further increase of another promoter of.
three times in a row to the bottom
a company, the management does not only refer to the level of corporate governance system design and functional arrangements, but also contains the value of the company’s management should not only focus on creating value for investors, but also balance short and long term efficiency, EVA indicator exactly a combination of these two aspects of the management elements, relatively accurately reflect a company’s management capabilities.
This is also the “investors” in each of the last three years on the A-share companies EVA calculation and ranked the reasons. Unfortunately, as a large central enterprises, the Chinese ocean-going series of three ranked last.
2009, “Investor” in the second half of 2008 to the first half of 2009 evaluation interval, all A-share listed company calculated EVA and Ranking, the results show that China Ocean to -97.81 billion in the last .2010, “investors” to the second half of 2009 to 2010 in the first half for the evaluation interval estimates EVA value of A-share listed companies, while the EVA value of the China Ocean has been greatly reduced compared to the previous time, but still -42.5 billion at the last one. Huadian Power International EVA
this time, China Ocean not only -108.65 billion figure to continue to the bottom of the value of value destruction is significantly increased, which is 2.5 times the previous EVA values, but also ranked second to last value of the two times.
China EVA Research Center Director Zhao Zhigang reflected by the corporate EVA value is not a value plus or minus, and the level of the problem, but should be a continuous improvement and tapping the potential, but the Chinese ocean-going series of years to the bottom, the level of integrated management is evident.
Chinese ocean-going person in charge of investor relations, Mr. Meng said in an interview with the “Investor News” reporter, the bottom of the rankings in recent years, the shipping industry in a recession related, but if the whole year of 2010 as the EVA calculations interval, then the performance of the China Ocean should have a larger increase, because that year the company to profitability, full-year net profit of about $ 6.8 billion.
In fact, last year China COSCO also the matter of the bottom of the rankings and newspaper representations excuse the evaluation time is not a fiscal year, resulting in improved performance in the second half of 2010 has not been reflected; but this year this newspaper The evaluation of time to adjust to the 2011 full year, the China Ocean is still the bottom.
ten billion loss is the culprit
economic value added is the net after-tax operating profit after deduction of the total investment cost of capital income, and therefore, operating profit and invested capital costs is the key factor to determine the value of a company EVA. Obviously, the head cap of the A-share loss “of China Ocean last year, mainly in profitability planted somersaults.
results, last year achieved operating income of 689.08 billion yuan, down 14%; net profit loss of 10.449 billion yuan, up sharply by 254%, earnings per share loss of 1.02 yuan. This loss rate hit a historical record of the China Ocean, even in the grave economic crisis in 2009, its net profit loss, but 7.541 billion yuan.The reason for the huge loss, the China Ocean said in its annual report, mainly due to a serious imbalance of the shipping market supply and demand, tariffs rapid decline in fuel costs continue to rise, and other factors. Last year in fuel costs rose 36 percent to $ 11.1 billion, resulting in gross profit margin fell to -10%.
China ocean container shipping, dry bulk shipping, logistics, terminals, container leasing business, but the container and dry bulk cargo revenue accounted for nearly 90%, so these two parts of the business profit and loss or failure of performance of the company is essential.
2011, dry bulk shipping market has been fluctuating around the BDI index fell sharply by 44% year on year, making the dry bulk shipping business to complete the freight volume fell 6%, resulting in dry bulk operating income fell to refrain from once proud the Chinese ocean-going dry bulk shipping eventually become the main reason for the huge loss of performance of the company.net profit loss, coupled with the company last year, R & D investment, so count the financial cost of 102 million yuan and 3.537 billion yuan depreciation expense, the China Ocean before interest and after tax operating profit is still a loss of super-70 billion. total
debt to income Bacheng
look at the decision another indicator of the EVA value – input costs, is also unfortunate that the high capital investment cost of the China Ocean.
company as of the end of the short-term borrowing about 28 billion yuan, about 33.1 billion yuan long-term loans, plus about 207 billion yuan of bonds payable, the company’s annual cost of debt totaled 56.7 billion yuan, equivalent to last year 80% of the total income. The increase in claims with the company in recent years, asset-liability ratio has increased steadily. Company balance rate of 58% in 2010 to 68 percent last year, the first quarter of this year increased to 70%.At the end of last year, after deducting minority interests of shareholders of the parent owners’ equity of 34.7 billion yuan, so all the capital investment amounted to nearly 91.4 billion yuan, “investors” and ultimately the company calculated the cost of capital of 3.834 billion yuan .
input costs closely related to the company’s strategy, but also fully reflect management’s strategic decision-making level. China Ocean four years ago, the judgment of the shipping market trends in error, leading to high input costs is the key.2008, China Ocean listed less than one year, on the surface prosperity of the international shipping market, the company then announced that custom-made 25 new ships to increase transport capacity of container and dry bulk. But when the ship in the company of mass outbreak of the global financial crisis, China Ocean did not expect the severity of the crisis, in addition to buying new ships, also rent a lot of boats. for fear of rising rents, the company was signing a lot of five or six years of the contract. According to company insiders, and some boat one day rental of $ 80,000 in 2011 fell to $ 18,000, but the contract has been signed, the China Ocean had the high price of $ 80,000 pay the higher costs. Nanjing Hydraulic Research Institute, vice president of
the Ministry of Transport the Jia big mountain, then alert the shipping company executives have begun to reduce the order, to sell some assets to reduce losses. However, China Ocean’s approach is contrary to the doomed thereafter results in huge loss bitter fruit.
, chairman of China COSCO Capt. Wei has fully feel the pain of the cost of blindly buy a boat in the company’s 2012 results briefing, he has repeatedly advocated the shipping companies do not create new vessels to avoid excess capacity situation exacerbated. Capt. Wei has been that this year’s performance will be improved, but the China Ocean in the first quarter of this year is still a loss of 2.7 billion yuan, company secretaries Guohua Wei, recently said that since April this year, oil prices remain high, the cost is overwhelmed.CITIC Securities analyst Zhang Hongbo’s view, the industrial chain of China Ocean is mainly concentrated in the shipping business, as long as part of a problem, the whole industry chain are affected. The shipping giant Maersk shipping business accounts for only 60%, 40% of business is oil and gas development and the retail business, in order to hedge the risk of shipping business.
this sense, China Ocean destroy the value of its own industries in which the objective reasons, but apparently, their own policy mistakes also contributed to the major culprit for the destruction of shareholder value.
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