Zhitong Financial APP learned that Morgan Stanley released a research report that "overweight" SITC International Holdings (01308), believing that the current valuation already reflected a very pessimistic profit outlook, raising its 2022 profit forecast by 9%, reflecting better-than-expected spot market prices and higher returns on asset sales, but partly offset by expectations of rising costs, with the target price lowered by 12% from HK $43.9 to HK $38.6.

Taking into account market pressure from the second half of this year to next year, the bank said it would cut its earnings forecast for 2023 by 12 per cent by 11 per cent, reflecting a potential pullback in immediate freight rates amid a slowdown in intra-Asian trade growth, which was partly offset by capacity expansion. In addition, we still like the company's excellent cost management and are committed to developing markets in Asia. In addition, management expects the short-term spot market weakness may end, but the recent sharp correction in Southeast Asian routes, spot freight is expected to follow a seasonal rebound in September, the next one to two years may be under pressure on the demand side.