Zitong Financial APP learned that UBS issued a research report that maintained the "buy" rating of Cosco seaport (01199), with the target price rising slightly from HK $7.95 to HK $7.98, an attractive valuation.

The company's first-quarter net profit rose 3 per cent year-on-year to $75 million, equivalent to 18 per cent of its full-year forecast, the report said. The bank takes a positive view on the increase in freight charges in the mainland and sees potential upside in freight charges. About 88 per cent of the group's profits come from local ports, making it one of the main beneficiaries of higher freight rates in the mainland. Management is optimistic about the freight increase, as the average contract price rose 7% to 8% in the first quarter, which will bring additional profits for the rest of the year.