Morgan Stanley's research report indicates a relative preference for Sitc (01308.HK) in the container shipping industry. Although disruptions in the Red Sea since the fourth quarter of 2023 have led to corrections in the long-haul spot market, the fundamentals of small vessels remain robust. However, the downward cycle of container ships may bring downside risks.

Morgan Stanley raised Sitc's profit forecast for 2024-2026 by 18%, 30%, and 2% respectively, maintaining the group's "in line with the market" rating, with the target price raised from 18.3 yuan to 24 yuan.