Glonghui, May 9 | CICC released a report indicating that COSCO Haineng's revenue for the first quarter was 5.838 billion yuan, up 3.7% year over year; net profit of 1,236 billion yuan, or 0.26 yuan per share, or 12.8% year on year. Without considering 2023 ship sales revenue and asset impairment losses, the first quarter deducted non-net profit of $1,236 million, up 39.8% year-on-year and 52.4% quarter-on-quarter. In addition, financial expenses for the first quarter decreased by 150 million yuan year on year, in line with this forecast. CICC continues to be optimistic about the boom in the oil transportation industry, maintaining the “outperforming industry” rating for COSCO Haineng and H shares. Considering that undervalued Hong Kong stocks are expected to recover when risk appetite in the industry rises, the target price for H shares was raised by 14.4% to HK$12.3, corresponding to the forecast price-earnings ratio of 8 times and 7.1 times for 2024/25, respectively, and the current stock price corresponds to the 2024 and 25 dividend rates of 6.9% and 8.2%, respectively. The dividends are quite attractive.