UBS Group's report pointed out that the stock price of SITC International (01308.HK) has rebounded by about 29% from its low point in September, mainly due to China's stimulus policies and the company's announcement of special dividends. However, the bank expects the container shipping industry to enter a deep downturn cycle after the 'golden age' from 2021 to 2024.

The bank's profit forecasts for SITC International in the years 2024 to 2026 are 0%, 4%, and 18% lower than market expectations, mainly because the bank believes that the market has not yet reflected the earnings downside risks in the second half of next year, including early shipments affecting container volumes; reduced freight rates; with new ship deliveries and an increase in charter ratios in 2026, ship costs will increase.

In addition, the bank has revised its profit forecasts for SITC International in 2024 to 2026 by increasing 19%, decreasing 3%, and decreasing 8%, lowering its target price from 17.8 yuan to 17.6 yuan, and downgrading the rating from 'neutral' to 'sell'.