Yang Ming Sees Record EPS of NT$17.35 in Q1
Yang Ming Marine Transport Corp. (2609-TW) reported Thursday (May 12) a net income after tax of NT$60.577 billion in the first quarter, an annual increase of 147.08%, and earnings per share (EPS) of NT$17.35, setting a new record for single-quarter profit.
Taiwan’s three main container companies earned a total of NT$202.5 billion in the first quarter, including Evergreen Marine Corp. (2603-TW), which earned NT$101.36 billion in the first quarter, and Wan Hai Lines Ltd., which earned NT$40.612 billion.
For the first quarter, Yang Ming’s consolidated revenue totaled NT$10.604 billion, an increase of 71.32% year on year. Gross profit was NT$75.315 billion, an increase of 137.36%, and gross margin was 70.58%, increasing 19.63 percentage points.
Operating income was NT$72.305 billion, an increase of 148.58%, and operating profit margin was 67.76%, an increase of 21.06 percentage points. Net income after tax was NT$60.577 billion, an annual increase of 147.08%, and net income per share was NT$17.35.
Meanwhile, Yang Ming’s board of directors approved the purchase of a new batch of containers, indicating that it is still optimistic about future market demand. The price and the counterparties will be announced after completing the price inquiry and contract signing per company regulations.
According to Alphaliner, a French maritime consultancy, the latest forecast for supply and demand growth in the shipping market is 4.2% for supply and 4.9% for demand growth this year, and 8.2% for supply and 4.5% for demand growth next year.
According to Yang Ming, with the orderly resumption of work in China after the lifting of restrictions, manufacturing shipments will emerge, and stronger market demand is expected, putting pressure on the supply chain again. Transportation efficiency is expected to remain challenging to return to normal levels in the near term.
The season will enter the traditional peak season for ocean freight, plus the start of new long-term contract prices for U.S. routes. Yang Ming expects stable market demand maintains the freight rate at a high level. It is cautiously optimistic about the sea freight market this year.