GLONGHUI, September 18 | J.P. Morgan Chase published a report saying that after experiencing market adjustments over the past year and a half, the outlook for Pacific shipping became clearer. The dry bulk cargo market from April to August this year was worse than expected, but the fundamentals of the industry have begun to improve in recent months. Since August, current freight rates for all types of cargo ships have rebounded, with an increase of between 35% and 50%. The main beneficiary demand has improved; the Panama Canal Authority limits the depth and quantity of drainwater for passing ships, which has led to tight shipping supply. The bank believes that the mainland's stimulus measures will accelerate construction activities, and that recovering construction progress after the long rainy season will further improve demand. Taking into account the decline in freight rates before April, Pacific Shipping's net profit forecast after tax from 2023 to 2025 was lowered by about 55%. However, if freight rates continue to recover in the short term, it is predicted that there will be room for increase. The target price was lowered from HK$4 to HK$3.3, and the rating “increase in holdings”.