Guoyuan Hong Kong issued a report saying that in view of the long-term bullish strategic positioning and development prospects of COSCO International Holdings, the target price of HK $5.11 remained unchanged, equivalent to 8.8 times and 8.1 times of earnings per share in 2011 and 2012, with 18.6% room for increase over the current price, reiterating buying.

According to the report, make every effort to build a global shipping service platform: the company will strive to build a leading global shipping service platform through a series of operations. In terms of offshore refueling business, it is possible to develop business in mainland China and Hong Kong through the acquisition of CNOOC, and change the role of brokers by acquiring suitable targets such as oil depots and ships in Singapore. this will help to increase the gross profit margin of Singapore's offshore refueling business.

In terms of paint business, the company set up COSCO Jordan Qingdao Company, which is expected to produce 50 million litres per year and carry out production in 2012 to meet the current strong demand. In addition, it also increases the production of industrial coatings with high gross profit margin to increase the gross profit margin of the entire paint business.

In terms of ship spare parts, the company will seize the opportunity of the transfer of the world shipping center to Asia, strengthen network coverage, actively develop market business in Japan and Singapore, and strive to increase the company's current 30% market share to 60%.

Cosco International fell 1.39 per cent to HK $4.25 yesterday.