According to the research report released by CICC, it maintains the "outperform" rating of SITC (01308) and raised the profit forecast for 2024 by 33.4% to 674 million US dollars due to the rising freight rates in Southeast Asia. It is expected to increase to 502 million US dollars and the target price is raised by 51.9% to 24.3 Hong Kong dollars.

The report pointed out that since the end of April, container shipping freight rates in Southeast Asia have risen rapidly. SITC continuously opens up new route networks and maintains high-quality services and low-cost competitive advantages in Southeast Asian markets. The bank predicts that the company will benefit from the rise in freight rates and record higher profits and dividends.

In addition, as the fourth quarter enters the peak season, freight rates are expected to further rise. The bank mentioned that in the long run, the newly added transportation capacity in the Asian region is limited. Demand is expected to continue to grow due to the relocation of industries in the region, and the supply-demand situation will improve year by year.