The Zhitong Finance App learned that Credit Suisse released a research report stating that to maintain Haifeng International's (01308) “outperform the market” rating, the target price was raised 7.5% from HK$20 to HK$21.5.

According to the report, the company's net profit last year was 1,944 million US dollars, which means the net profit for the second half of the year was 776 million US dollars, in line with the bank's expectations. Fourth-quarter shipping volume was flat year over year, better than the bank's expectations, and offset less-than-expected freight performance (down 18%). The final dividend was 1.6 yuan per share, with a payout ratio of 70%, which meant that the dividend rate reached 17%, in line with expectations.

The bank said that it looks at Haifeng International's prospects but is relatively optimistic. Since the group's business is concentrated within Asia, there are signs of recovery in spot freight rates recently, while long-term contract exposure is stable. The bank also mentioned that the group's countercyclical expansion strategy should help reduce its cost per ship, thereby consolidating its long-term cost advantage. As shipping volume was better than expected and cost prospects improved, the company's earnings per share forecast for 2023-24 was raised by 7% to 8%.