According to the Guotai Junan Research Report, COSCO Marine (1138.HK) has the largest tanker fleet in the world, and the fleet structure is similar to that of the industry, which will fully benefit from the upward trend. It is estimated that for every 10,000 US dollars/day of VLCC TCE, the company's net profit will increase by 1 billion yuan, and profit flexibility is sufficient. In the off-season, VLCC freight rates surged higher than expected, once again verifying that the oil transportation capacity utilization rate is close to the threshold, and the profitability of oil transportation companies has increased significantly. It is expected that supply and demand in the oil transportation industry will continue to improve in the next few years, and the rise and continuation of the boom will exceed expectations. The situation in the Red Sea will be marginally affected or gradually reduced, and oil transportation will welcome a good layout opportunity. Maintain the 2023-25 net profit forecast of RMB 35.72/8.6 billion for the company. COSCO Haineng's H shares are attractive in terms of risk-to-return ratio, have double room for performance valuation, and maintain a target price of HK$11.87.