(Yicai Global) Aug. 30 -- Shares in China International Marine Containers dropped today as China’s biggest shipping container manufacturer logged a 40.9 percent plunge in net profit in the first half from the same period last year as reefer sales volumes return to normal levels from last year’s high.

CIMC’s stock price [SHE:000039] closed down 2.5 percent at CNY8.05 (USD1.16). The stock has lost 30 percent in value so far this year.

CIMC achieved net profit of CNY2.5 billion (USD361.4 million) in the six months ended June 30, according to the Shenzhen-based company's latest earnings report released yesterday. Despite the big fall, this was still much higher than in previous years. Revenue dipped 1.4 percent over the period to CNY72.1 billion (USD10.4 billion).

Profit from its container manufacturing business, CIMC's biggest earner, tumbled 30.5 percent year on year to CNY3.1 billion (USD448 million), while revenue sank 17 percent to CNY22.8 billion, the report said. Profit from its road transport business plunged 51.3 percent to CNY370 million (USD53 million) while revenue dived 26.7 percent to CNY11.2 billion.

This is in stark contrast to last year’s results when a shortage of containers due to the Covid-19 pandemic drove up profit and revenue to an all-time high. Profit from container manufacturing jumped nearly six times in 2021 to CNY11.3 billion (USD1.6 billion), while revenue tripled to CNY66 billion.

However, its logistics segment did very well in the first half thanks to some recent acquisitions. Net profit jumped 80.9 percent to CNY300 million and revenue climbed 74 percent to CNY17.3 billion.

The loss of effective container capacity caused by port congestion this year will be 15 percent, the tight supply of container transport will continue and earnings in the container transport sector will likely hit a record high this year, according to UK maritime research consultancy Drewry.

CIMC will continue to invest in technologies and equipment and improve its management in the second half to hike its competitiveness in the conventional container business and consolidate its leading position in the sector, the firm said.

Editors: Shi Yi, Kim Taylor