Despite the risk of oversupply persisting in 2026, COSCO Shipping Holdings' robust net cash position (representing 63% of its market capitalization) should provide the company with flexibility to navigate through a downturn.
According to a research report issued by UOB Kay Hian, COSCO Shipping Holdings (01919) reported a 55% year-on-year decline in net profit to RMB 9.5 billion in the third quarter of 2025. However, driven by resilient freight rates and volume growth, its performance still exceeded the brokerage's expectations. The recent rebound in freight rate indices and the suspension of port fees between China and the US are expected to support profitability in the fourth quarter of 2025. Despite lingering risks of oversupply in 2026, the company’s robust net cash position (representing 63% of its market capitalization) should enable COSCO Shipping Holdings to navigate the downturn flexibly. The stock’s rating has been upgraded to Hold, with the target price increasing from HKD 12 to HKD 14.54.
