Wan Hai Lines Ltd. (2615-TW) announced its first-quarter financial results on Monday (May 9), with net income after tax surging to NT$40.612 billion, an annual increase of 176.42%. Earnings per share (EPS) of NT$16.64 set a new high for profitability in a single quarter during the traditional low season.
For the first quarter, Wan Hai’s consolidated revenue was NT$80.503 billion, up 108.47% year-over-year, while gross profit was NT$51.651 billion, up 169.76% year-over-year. Gross profit margin was 64.16%, an increase of 14.58 percentage points.
Operating income was NT$48.857 billion, up 177.64% year over year. The operating income ratio was 60.69%, up 15.12 percentage points year-over-year, and net income after tax was NT$40.612 billion, up 176.42% year-over-year.
Looking ahead, Wan Hai believes that the supply chain woes caused by the pandemic will continue, but after May 1, China’s exports will gradually pick up. The shipping industry will remain full of challenges as the U.S. and Western dockers start to negotiate contract swaps.
However, in the era of high freight rates, Wan Hai will continue to add new capacity, with 12 new vessels expected to be delivered this year, 20 next year, and 14 in 2024, adding to its further growth momentum.