Rate Of Return
Likes Received[HK IPO] T.S. Lines, ranked sixth among container shipping companies in the Asia-Pacific region.
The company is a container shipping company focused on the Asia-Pacific region. In terms of fleet size, we ranked 21st among global container shipping companies as of January 1, 2024, with a market share of 0.3%, and ranked sixth among container shipping companies focused on the Asia-Pacific region in December 2023, with a market share of 2.3%.
The company began its IPO on October 24, with an offer price of HKD 3.5~4.5 per share, 1,000 shares per lot, a minimum subscription of HKD 4,545.38, a market capitalization of HKD 5.778 billion to HKD 7.429 billion, and an issuance of 251 million shares. It belongs to the shipping and port industry and has a greenshoe option.
The sponsors are JP Morgan and China Merchants Securities. JP Morgan has sponsored only 4 projects in the past two years, with a first-day rise rate of 25%. China Merchants Securities has sponsored only 3 projects in the past two years, with a first-day rise rate of 66.66%.
There are a total of 6 cornerstone investors: Indigo Rainbow, Ms. Hong, Worldwide Logistics, Metro Shine, Ms. Wang, and Crane Movement. Based on the median offer price, the cornerstone investors account for 49.45% of the shares, which is an average proportion.
Container shipping companies in the Asia-Pacific region can be divided into three categories: (i) global operators focused on long-distance transportation, serving the Asia-Pacific region to support long-distance routes or as an extension of services; (ii) global operators focused on regional services but with significant operations across continents; and (iii) container shipping companies focused on the Asia-Pacific region, with their business primarily serving the region. The company ranks sixth among the major container shipping companies focused on the Asia-Pacific region.
The company's revenue from 2021 to 2023 was HKD 1.837 billion, HKD 2.443 billion, and HKD 875 million, respectively, with a year-on-year revenue decline of 64.21% in 2023. Net profit from 2021 to 2023 was HKD 1.078 billion, HKD 1.075 billion, and HKD 20.382 million, respectively, with a year-on-year net profit decline of 98.1% in 2023.
Based on the median offer price, the market capitalization is HKD 6.604 billion, with an issuance of HKD 1.004 billion, accounting for 15.2% of the shares. With cornerstone investors locking in 49.45%, the remaining float is HKD 508 million, which is relatively large.
The current subscription multiple is 0.31x, indicating poor subscription interest. There are 2 days left in the IPO period.
Subscription Strategy:
The company is a container shipping company focused on the Asia-Pacific region, ranking sixth among such companies with a market share of 2.3%. The sponsors are JP Morgan and China Merchants Securities, which have sponsored few projects in the past two years, with overall average performance. The 6 cornerstone investors account for 49.45%, which is also average. The company's performance was relatively stable in 2021 and 2022 but saw a sharp decline in 2023. Based on the median offer price, the market capitalization is HKD 6.604 billion, with an issuance of HKD 1.004 billion. With cornerstone investors locking in 49.45%, the remaining float is HKD 508 million, which is relatively large. The current subscription interest is also poor, so I plan to pass on this one!
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$TS LINES(02510.HK)
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