Morgan Stanley released a report indicating that shipping demand is expected to continue to weaken this year. Considering new ship deliveries, capacity supply pressure is expected to increase between 2023 and 2024. Faced with uncertainties related to cash allocations and potential investments leading to value dilution, the bank believes that the net cash position may not support the valuation of COSCO Marine Holdings (01919.HK). According to the report, in order to reflect the increase in freight costs due to the Red Sea crisis, COSCO Maritime Control's profit estimates for each year from 2023 to 2025 were raised by 2%, 11% and 14%, respectively, and the target price of H shares was raised from HK$5.4 to HK$6, with a rating of “reduced holdings.”