JPMorgan: OOIL Q3 Operating Data Positive, Port Congestion Meets Healthy Demand

Stock News16:10

JPMorgan released a research report stating that OOIL (00316) Q3 operational update was positive, with port congestion coinciding with healthy demand, and peers raising guidance also driving industry discussion. The bank maintained an "Overweight" rating on the stock with a target price of HK$176.

The bank noted that Q3 average revenue per TEU rose 33.1% year-on-year and 30% quarter-on-quarter to US$1,547, while volumes rose 9% year-on-year to 2.12 million TEU and were roughly flat quarter-on-quarter. Total liner revenue reached US$3.285 billion, up 45.1% year-on-year and 29.5% quarter-on-quarter.

Loadable capacity increased only 3.6% year-on-year, while load factor improved by 4.2 percentage points, reflecting tight effective capacity and prudent capacity deployment. Trans-Pacific revenue surged 71.8% year-on-year and now accounts for about 44% of liner revenue.

The bank believes that ongoing port congestion can offset the impact of upcoming new vessel deliveries, helping to sustain pricing power, and maintains a positive view on the shipping ecosystem.

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