Bank of America Securities: Raising the target price of COSCO Marine Holdings (01919) to HK$13.5 to maintain “outperforming the market” rating

The Zhitong Finance App learned that Bank of America Securities released a research report stating that COSCO Marine Holdings (01919)'s net profit and shareholder returns for the first half of the year were in line with the bank's expectations. Thanks to strong demand and high freight rates supported by port congestion, the company's profit prospects for the second half of the year are expected to be strong, but the short-term profit strength is fully reflected in the valuation, and the market ignored the gradual intensification of industry headwinds in the 2027-28 fiscal year. As a result, the company's target price was raised from HK$12.5 to HK$13.5, but the “outperforming market” rating was reiterated.

The bank mentioned that in response to long-term high container freight rates, COSCO Maritime Control's average earnings per share for the 2026-28 fiscal year was raised by 0.4 yuan per share. Furthermore, looking ahead to 2027, the bank pointed out that even if demand and port congestion continue to exceed expectations, the risk that the shipping market will enter a downward cycle driven by the reopening of Red Sea routes and the delivery of new ships is still rising.