Lan Junsheng, chairman of Huiyang.

(File photo, photo by reporter Wang Yihong)

[Reporter Wang Yihong/Taipei Report] Bulk shipping company Huiyang-KY (2637) held a law seminar yesterday.

Huiyang said that the world's largest raw material demand country - China's opening policy is becoming clearer, and freight rates will recover slowly after the Lunar New Year next year, but the global bulk shipping market next year will still be affected by the COVID-19 epidemic, the slow recovery of the Chinese market, global drought Ukrainian-Russian war, inflation impact.

However, if the Ukrainian-Russian War ends, there will be a demand for post-war reconstruction. Coupled with the low order of new ships, it will be difficult to make up for the capacity gap of ships slowing down and being scrapped after the new environmental protection regulations are put on the road. For the bulk market, this is a big problem Positive message.

2023 will be a critical year to test the bulk shipping industry, and Huiyang is cautiously optimistic.

Huiyang pointed out that from the second half of this year, affected by external factors such as global inflation, interest rate hikes, the delay of the Ukrainian-Russian War, and China’s unclear opening-up policy, the annual increase in bulk shipping rates in 2022 will be revised down to 21.34%. Benefited from the launch of the new regulations on carbon emissions and environmental protection, although the base period is already high this year, we are still optimistic that there will be a 5%-6% contract renewal increase next year.

Huiyang said that the bulk freight rate will not keep falling, and it is expected to show some performance after the Lunar New Year.

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Huiyang said that in January 2023, the two new carbon emission and environmental protection regulations of ship efficiency index (EEXI) and operational carbon intensity index (CII) will be put on the road. There are 62 ships in the Huiyang fleet, accounting for about 45% of the ships, which do not need to slow down. Without being affected by the implementation of new regulations, it is more competitive than other companies.

At present, Huiyang has a total of 140 ships, with an average age of 7 years. In 2023 and 2024, 7 and 4 ships will be delivered successively.

Since the end of November, the pre-tax profit per share of Wisdom has reached 14.03 yuan, and the annual profit will hit a record high. As far as the performance of the first three quarters is concerned, the operating profit ratio of Wisdom has reached 50%, ranking first among listed bulk shipping stocks .

Huiyang said that mainly ship management, maintenance, insurance and crew arrangement are all handled by Huiyang himself and have not been outsourced. In addition, the fleet is relatively young, so the operating profit rate is relatively high.

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