DBS: Raising COSCO Maritime Holdings (01919) target price to HK$19.3, third quarter results beat expectations

The Zhitong Finance App learned that DBS released a research report saying that COSCO Maritime Holdings (01919)'s net profit for the third quarter reached 17.2 billion yuan, better than the market and this forecast. However, profits are expected to normalize significantly in 2027, maintaining a “holding” rating, and the target price will be raised from HK$18.4 to HK$19.3.

According to the bank, freight rates are expected to remain resilient in the fourth quarter, but it is expected that fleet delivery will accelerate next year, which will lead to a sharp adjustment in freight rates. Based on better-than-expected performance in the third quarter and recent freight resilience, the bank raised COSCO Marine Control's 2026 and 2027 revenue forecasts by 7% and 9% respectively, and raised the 2026 net profit forecast by 45% to 37 billion yuan. However, net profit in 2027 is expected to fall 43% year on year to RMB 21.3 billion.

The bank believes that although the company's recent performance and freight prospects are positive, profits are expected to be significantly normalized in 2027, so there is limited room for further revaluation. It also expects the Group to pay 1.21 and 0.69 yuan per share in 2026 and 2027, with dividend yields of about 7.4% and 4.2%, respectively.