The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that the target price was reduced by 12% from HK$165 to HK$145 for Oriental Overseas (00316). Considering OCW's operations in the second half of 2023 and the first quarter of 2024, J.P. Morgan believes that although the latest performance and dividend decisions are not impressive, OCEC's valuation is still attractive.

The bank said that Orient Overseas International's revenue for the first quarter of this year increased by 21.9% compared to the previous quarter. Mainly due to the increase in comprehensive freight rates under the Red Sea situation. Also, spot freight rates have stabilized and are expected to rise. Following the decline two months after the Lunar New Year, the Shanghai Container Freight Index has seen a slight increase for two consecutive weeks. Looking ahead, Motong sees room for a further rebound in Oriental overseas international freight rates: 1) the company is driving a new round of overall rate increases (GRI) starting May 24; 2) the peak season for Asian-European routes during the Olympics is about to begin, and the group says cargo volume is picking up; 3) global shipping capacity is limited, supply chain disruptions have intensified, and potential disputes in USEC port negotiations. The recent escalation of tension in the Middle East has added a layer of complexity and may lead to increased supply chain challenges.