Goldman Sachs reiterated its long-term optimism about COSCO Marine because it believes that its supply and demand prospects are good (even without the influence of the Red Sea), and that freight rates may rise during the peak season in the fourth quarter or provide another buying opportunity.
The Zhitong Finance App learned that Goldman Sachs released a research report saying that the “buy” rating given to COSCO Haineng (01138) is expected to meet expectations. Coupled with falling off-season freight rates, the bank reiterated its long-term optimism about COSCO Marine because it believes that its supply and demand prospects are good (even without the influence of the Red Sea), and that the target price for the fourth quarter peak season is HK$11.5.
According to the report, the company issued a profit warning. Net profit for the first half of the year is expected to fall to 2.6 billion yuan year on year, which means net profit for the next quarter is 1.3 billion yuan, down 23% year on year or up 6% from quarter to quarter. Excluding the one-time disposal proceeds from the sale of three ships in the second quarter, the recurring net profit for the next quarter should be 1.3 billion yuan, or a 14% year-on-year decrease or 6% quarterly increase, in line with this forecast.