Morgan Stanley lowered the target price for COSCO Ship Hold to 21 yuan and upgraded the earnings forecast rating to "Overweight."

JP Morgan published a research report, updating the forecast model for COSCO Ship Hold (01919.HK). The target price for H shares was slightly lowered from HKD 22 to HKD 21, while the target price for A shares of COSCO Ship Hold (601919.SS) was reduced from RMB 25 to RMB 22, maintaining a rating of "Overweight."

The bank stated that escalating geopolitical tensions have led to further tightening of global supply chains. Maersk and Hapag-Lloyd recently suspended Red Sea routes, and spot freight rates have risen since March, contrary to the traditional off-season. COSCO Ship Hold has resumed bookings in major markets in the Middle East, avoiding conflict areas by delivering through ports outside the Strait of Hormuz and inland, while maintaining strong demand and cost discipline.

JP Morgan indicated that COSCO Ship Hold's earnings for the fiscal year 2025 far exceeded expectations, with fourth-quarter net profit being four times the bank's forecast and annual net profit 10% higher than previous estimates. The company maintains a 50% payout ratio, with management focusing on network expansion, vertical integration, and digitalization. The bank raised its adjusted earnings per share estimates for COSCO Ship Hold for 2026 and 2027 by approximately 4.9% and 8.8%, respectively