The Zhitong Finance App learned that Credit Suisse released a research report saying that tanker companies are preferred in the shipping industry, believing that they will maintain their structural upward cycle this year, and are expected to benefit from global re-purchases of oil, etc. The bank believes that the valuations of tankers and dry bulk carriers reflect downward space. The target price of shipping stocks has generally been lowered, and the Dongfang International (00316) rating has been downgraded to “outperform the market”, while the target price has been lowered to HK$110, believing that its valuation does not reflect the poor state of the industry.

The report mentioned that short-term preferences include companies that have clear demand stimulation, are resilient in the face of fluctuations in the macro environment, have room to increase their profits, and have cheap valuations. They recommend COSCO Haineng (01138), which maintains a target price of 9 Hong Kong dollars, and the rating “outperforms the market.” Also, the target price of Pacific Shipping (02343) was lowered from HK$3.5 to HK$3.2, rated “outperforming the market”.

As for the midline, the bank favors companies with higher growth potential and operating leverage. It also recommended COSCO Hyenergy and Haifeng International (01308) lowered their target price from HK$38 to HK$20, rating “outperforming the market.”