The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it maintained the COSCO Maritime Control (01919) “increase” rating and raised the target price from HK$10 to HK$13.

The bank said it added the company to the positive catalyst watch list. Under the two major canal crises, its valuation is low, and its profits are expected to rise. Considering the schedule for new ship deliveries, the bank believes that the market is overpaying attention to the risk of overcapacity in the industry and ignoring the possibility that a “perfect storm” will slow ship and resource turnover.

The report indicates that during 2024, freight rates and the profitability of shipping companies will increase, so the expectations of COSCO Maritime Control and Oriental Overseas International (00316) were raised to reflect their performance forecasts for the previous quarter and a moderate increase in spot freight rates. The bank believes that the market will raise earnings estimates for shipping companies in the next few weeks.