In a media briefing, Cosco President Ji Hai Sheng said that in addition to expanding its bulk shipping fleet, the Singapore-listed firm would increasingly focus on its ship-repair and oil-rig manufacturing businesses to drive future profits.
"Of key importance is our building up of value-added services such as oil-rig repair, ship conversions and new builds," he said.
Through its 51 percent stake in China's largest shipyard, Cosco Shipyard (Group) Co Ltd -- also 30 percent-owned by SembCorp Marine Ltd -- Cosco already commands about 20 percent of China's ship repair market since 2004.
Cosco's dry bulk shipping business accounts for nearly 80 percent of its overall turnover, with marine repair taking up a minuscule 3 percent.
The firm, owned by China Ocean Shipping Co, said 2004 net profit rose to S$66.2 million ($40.4 million) from S$24.3 million.
Cosco Corp (Singapore) Ltd said in November it expected to make at least 200 million yuan ($24 million) in profit in 2004, while the average forecast from nine analysts polled by Reuters Estimates was for profit of S$59.4 million ($36.3 million).
Last year's profit rise was partly a result of a 32 percent rise in one-off gains to S$448 million. Profit contributions from its associate companies, including shipyards in China, more than doubled last year to S$36.4 million.
Ji said the firm would use its cash reserve of S$94.0 million to expand its repair capacity and for possible mergers and acquisitions.
Sales rose 27 percent to S$116.4 million, helped by strong contributions from its dry bulk shipping business.
Cosco shares closed up 2.1 percent on Monday at S$1.47, outperforming a 0.2 percent fall in the benchmark Straits Times Index. The stock has added a quarter in value since the start of the year after more than doubling in 2004.
Cosco stock trades at 17 times forecast 2005 earnings, compared to four times for rival Neptune Orient Lines, 11 times for A.P. Moeller-Maersk, parent of the world's top container shipping line Maersk Sealand, and seven times for Dutch shipping line Royal P&O Nedlloyd.