Movement Alert｜SITC International Rises 3.12% in Regular Trading, Multiple Institutions Raise Target Prices on Q2 Freight Rate and Volume Recovery Outlook

Market Focus06-01

On June 1, SITC International rose 3.12% in regular trading, trading at 35.70 HKD/share, with trading volume of HKD 159 million. The stock gained amid multiple institutional upgrades and positive management guidance on second-quarter operations.

On the news front, several major banks recently raised their target prices and earnings forecasts for SITC International. UBS lifted its target price from 30 HKD to 33.8 HKD and raised earnings estimates by 1%-6%. CICC maintained an outperform rating with a target price of 40 HKD, while Bank of America raised its target to 37 HKD. Management disclosed that although Q1 freight rates declined approximately 5% year-over-year, container shipping rates have rebounded strongly since March, driven by Middle East geopolitical tensions, and have surpassed prior-year levels. The company expects both freight rates and shipping volumes to achieve year-over-year growth in Q2. Additionally, management noted that despite fuel costs nearly doubling from earlier lows, SITC can fully pass cost increases to customers through fuel surcharges.

Within the Marine sector, the broader industry showed strength. COSCO Shipping Holdings rose 5.08%, OOIL gained 6.61%, TS Lines advanced 2.39%, and Pacific Basin added 2.22%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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