Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research> HSBC Research Upgrades PACIFIC BASIN (02343.HK) to Buy, Raises TP to HKD3.4
Recommend 4 Positive 9 Negative 4 |
||||
|
||||
|
HSBC Global Investment Research issued a report noting that since the Middle East conflict, although freight rates have increased, PACIFIC BASIN (02343.HK) has underperformed its peers and the HSI. The broker believes that longer-haul trades and rerouting have lifted tonne-miles, while supply chain disruptions have tightened supply. It expects PACIFIC BASIN to deliver strong performance in 1H26 and an even stronger 2H26. In light of a firmer freight rate outlook, HSBC Global Investment Research upgraded the company’s investment rating from Hold to Buy. The broker added that supply and demand in the dry bulk market are broadly balanced, in contrast to the overcapacity seen in container shipping. Although the dry bulk fleet has grown in nominal terms, effective supply may be tighter. Meanwhile, freight rates for the company’s core segments, namely Supramax and Handysize vessels, have shown resilience. The broker raised its recurring profit forecasts for 2026 to 2028 by 28% to 34%, and expects recurring profit in 1H26 to surge nearly 2x YoY and double HoH to USD63 million. HSBC Global Investment Research lifted its TP from HKD3.2 to HKD3.4, reflecting a firmer freight rate outlook, tonne-mile growth driven by disruptions, and tighter supply, which together improve near-term earnings visibility. The broker also noted that the company’s forecast dividend yield for 2026, including share buybacks, is around 10%, which appears attractive. (ad/da) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
AASTOCKS Financial News |
||||
Copied to Clipboard
 |
||||
