＜Research＞Daiwa Downgrades COSCO SHIP HOLD (01919.HK) to Sell, Axes TP to $9.5

　　Daiwa remarked in a report that it expected high freight rates to likely continue to support the industry's profitability throughout the year, as the progress of the Israel-Hamas ceasefire agreement is still not enough to convince the industry to resume trips through the Red Sea, with route re-adjustments likely to continue at least until the end of this year. Although the broker expected shipping stocks to post low double-digit yields this year, investors may not be overly excited about this due to concerns about future freight rates.

　　Daiwa forecasted COSCO SHIP HOLD (01919.HK) -0.100 (-0.870%) Short selling $125.15M; Ratio 11.599% to post low-double-digit earnings growth for 1H24, as the market's negative sentiment towards shipping companies grows and the company may be subject to greater downside risks. In addition, the broker axed its EPS forecast on COSCO by 41% to 43% for FY25-FY26, mainly because the recent high freight rates may not last as long as expected.

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　　Summing up the above factors, Daiwa chopped COSCO's target price from $15.5 to $9.5, downgraded its rating from Buy to Sell, and advised investors to sell the shares for profit in view of the weak market sentiment towards shipping stocks.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-12 16:25.)

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