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Pacific Basin (02343) rose nearly 5% in the morning session. As of press time, the stock was up 4.87%, trading at HK$3.77, with a turnover of HK$30.3543 million.
Recently, Pacific Basin announced its third-quarter operating data. The company achieved a daily profit of US$2,190 across approximately 6,610 operating days in the third quarter of 2026. This operating activity generates an additional profit source for the company's core business by using short-term chartered vessels to transport customers' spot cargoes.
JPMorgan believes that Pacific Basin's third-quarter operating update reinforces the bank's positive view on freight rate resilience and views the recent share price pullback as a buying opportunity, estimating the company's dividend yield this year at approximately 9%. The bank noted that the company's earnings visibility for the fourth quarter has improved, management's outlook for next year is positive, and it maintains considerable spot exposure amid resilient demand and potential El Niño disruptions.
CICC pointed out that according to the company's announcement, as of October 12, 2026, the company has covered 65% and 76% of committed vessel days for Handysize and Supramax vessels in the fourth quarter, corresponding to TCE rates of US$16,480 per day and US$18,960 per day, respectively, which are 2.9% and 5.4% higher than actual TCE rates in the third quarter. The bank believes that the higher coverage ratio enhances the certainty of fourth-quarter earnings, while uncovered vessel days still retain spot freight rate flexibility and are expected to benefit from rising freight rates in the fourth quarter.
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