Glonghui, April 7 | Goldman Sachs published a research report saying that COSCO SHIPPING's profit performance last year exceeded expectations, mainly due to a one-time return of tax provisions, and the recurring profit performance during the year was in line with expectations. However, due to the decline in the contribution of affiliated ports, China Merchants Port's profit performance in 2023 fell short of expectations. The bank pointed out that at present, the compound annual growth rate of port throughput is expected to be 3% from 2024 to 2026. COSCO SHIPPING port management expects domestic and overseas port throughput to increase by 3% to 4% and 2%, while China Merchants Port Management expects the freight rate performance to remain flat this year, while overseas port contract transfers will maintain a 3% to 4% increase. In the Chinese port sector, Goldman Sachs is more optimistic about COSCO SHIPPING, pointing out that its stock price has fallen 16% from the high level in January of this year, and the dividend return at the current price level has reached 6%. The management of the parent company COSCO SHIPPING Holdings indicated that the value of COSCO SHIPPING Port was undervalued and believed that the continued increase in holdings from the parent company would support its stock price. Goldman Sachs lowered China Merchants Port's net profit forecast for this year and next two years by 18% and 20%, while COSCO SHIPPING Port's net profit increased by 4% and 3% to reflect the latest forecasts for the industry's throughput and average freight rates. Accordingly, Goldman Sachs raised the target price of COSCO SHIPPING by 7% to HK$6.5, and lowered the target price of China Merchants Port by 6% to HK$11.6, all maintaining a “buy” rating.