In "The Big Banks," CICC raised the target price for PACIFIC BASIN to HKD 2.4, maintaining an "Outperform" rating

CICC published a report indicating that PACIFIC BASIN (02343.HK) saw a year-on-year revenue decline of 20.5% to USD 1.019 billion in the first half of the year, with a net profit attributable to shareholders of USD 26 million. During the period, the company disposed of five old vessels; excluding asset disposal gains, the core profit for the first half was USD 22 million, a year-on-year decline of 50%. The performance was below the bank's expectations, mainly due to weak average time charter rates (TCE).

CICC maintains its earnings forecast for PACIFIC BASIN for 2025 to 2026 largely unchanged, with the current stock price corresponding to forecast price-to-earnings ratios of 9.8 times and 8.8 times for 2025/2026, respectively. Based on improved industry risk appetite, the target price has been raised by 14.3% to HKD 2.4 (corresponding to price-to-earnings ratios of 10.1 times and 9.1 times for 2025/2026), indicating a potential upside of 4.3%, and maintains an "outperform the industry" rating