Daiwa's report stated that COSCO Shipping International (00598.HK) performed worse than expected in the third quarter, with revenue for the first 9 months increasing by 18% year-on-year, while profit and adjusted profit decreased by 12% and 7% year-on-year, respectively. Both gross profit and net profit margin recorded declines. The company's revenue in the third quarter increased by 19% year-on-year, but gross profit and operating profit decreased by 7% and 11% respectively.

The bank pointed out that despite the company's recent announcement of a buyback plan, the disappointing performance in the third quarter is expected to put short-term pressure on the company's stock price. The bank maintains a 'shareholding' rating. (vc/w)

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