Based on performance, the bank raised its net profit forecasts for 2025 to 2027 by 25% to 46%, primarily reflecting better-than-expected third-quarter earnings and the deferred collection of port fees between China and the US.
According to Zhitong Finance, Goldman Sachs issued a research report stating that the management of COSCO Shipping Holdings (01919.HK, 601919.SH) remains cautiously optimistic about long-term freight rate performance. This is due to over 25% of the existing cargo fleet being more than 20 years old by 2028-2030, requiring scrapping. Meanwhile, freight volumes have shown strong growth, particularly on routes to Southeast Asia, Europe, and Africa. Based on performance, the bank raised its net profit forecasts for 2025 to 2027 by 25% to 46%, mainly reflecting better-than-expected third-quarter earnings and the deferred collection of port fees between China and the US. The target price for the H shares was increased from HKD 11.5 to HKD 12.5, while the target price for A shares was raised from CNY 14.7 to CNY 16. The stock rating remains at 'Neutral'.
Management also noted a rebound in spot freight rates in October, primarily driven by Black Friday and advance shipments prompted by the originally planned US tariff increase on Chinese goods. Regarding the better-than-expected third-quarter earnings, management attributed this to excellent freight rate performance, given the higher proportion of intra-Asia routes, as well as superior cost control compared to industry peers.
