Nomura Securities released a research report stating that it lowered the earnings forecast for Pacific Basin (02343) by 1% this year, but raised the earnings forecast for next year and the following year by 18% to 24% to reflect adjustments to the forecast of time charter equivalent (TCE) and gross margin. They upgraded the investment rating of the stock from "hold" to "outperform the market", with the target price raised from 2.25 Hong Kong dollars to 2.4 Hong Kong dollars.

The bank pointed out that the TCE of the company's Handymax and Supramax vessels increased by 35% and 6% year-on-year, to 13,740 and 12,220 US dollars. Among them, the performance of the Supramax vessels was below the bank's expectations, lagging behind the Baltic Supramax Index for two consecutive quarters. However, benefiting from a strong spot market, operating profit increased by 12% year-on-year to a daily average of 1,300 US dollars, exceeding expectations. In the fourth quarter, the company's Handymax and Supramax vessels operated for 74% and 84% of the days, with revenues locked in at 12,570 and 12,190 US dollars respectively.

In addition, management sees potential freight tax rollback, albeit less than last year's same quarter. The company also admitted incorrectly fixing freight contracts at a low stock price. The bank believes that considering China's recent policy announcements, the company will increase flexibility next year.