＜Research＞Daiwa Lowers OOIL (00316.HK)'s TP to $110 With Rating Downgraded to Hold

　　Daiwa has lowered the target price of OOIL (00316.HK) -5.900 (-5.157%) Short selling $32.34M; Ratio 27.600% from $160 to $110 and downgraded its rating from Buy to Hold in belief that upside catalysts in the near-term are limited, according to a report released by Daiwa.

　　The broker believes that the market investment sentiment on the containership sector will continue to deteriorate in the near term on the back of a standstill of the Gaza ceasefire negotiations and Red Sea ceasefire developments. In addition, the latest Shanghai Containerized Freight Index (SCFI) has started to drop after a 13-week rally, which has further increased market concern on the sustainability of the current high freight rate environment. The broker, therefore, believes that upside catalysts for OOIL's stock price remain limited.

　　Related NewsM Stanley Downgrades COSCO SHIP HOLD, OOIL to Underweight; Long Winter Looming for Sector

　　In the broker‘s estimation, OOIL’s adjusted earnings in 1H24 will achieve a low-teen increase, while its growth may accelerate in 2H24 due to a low base comparison. Since OOIL's share price has underperformed YTD that of COSCO SHIP HOLD (01919.HK) -0.240 (-2.105%) Short selling $39.88M; Ratio 11.200% , the downward pressure on its share price is believed to be lower than that on COSCO SHIP HOLD.

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

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