According to Zhito Finance App, $COSCO SHIP ENGY (01138.HK)$It rose nearly 5% again, accumulating over 20% growth in January. As of the time of reporting, it rose by 4.83% to 7.60 Hong Kong dollars.
In news, the USA Treasury Department last Friday (January 10) added Russian oil traders, oil field suppliers, and Russian energy officials to the sanctions list. Additionally, over 180 vessels have been sanctioned for allegedly forming a 'shadow fleet' for transporting Russian crude oil subject to US sanctions. Morgan Stanley released a research report indicating that the sanctions might gradually push the 'shadow fleet' out of the market, which would benefit the legitimate tanker market. The firm believes that the negative sentiment reflecting weaker-than-expected performance in the peak season of Q4 2024 may improve.
Furthermore, COSCO SHIP ENGY recently issued a positive profit alert. CICC noted that COSCO SHIP ENGY is expected to achieve a net profit attributable to shareholders of 3.96 billion in 2024, a year-on-year increase of 17.2%; excluding non-recurring gains, the net profit is expected to be 3.95 billion, a decline of 4.4% year-on-year. The difference in growth rates before and after excluding non-recurring items is mainly due to recognizing non-recurring gains and losses of +0.01 billion in 2024 compared to -0.75 billion in 2023. The firm pointed out that the tight supply logic for VLCC has not changed, and the tightening sanctions on shadow tankers may further increase the demand for compliant market capacity. Supply and demand are expected to improve further, and the industry cycle is on the rise, Bullish on the company's profit elasticity, with low valuation and dividends providing support at the bottom.
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