COMEC Shares Extend Gains Over 4% on Strong Q1 Profit Forecast, Boosted by Feeder Container Ship Demand

Stock News04-23

COMEC (00317) rose more than 4% again, bringing its cumulative increase for the month to nearly 30%. At the time of writing, the stock was up 4.27% to HK$16.13, with a turnover of HK$76.92 million. The company previously issued a positive profit alert, forecasting first-quarter net profit attributable to shareholders of between 360 million yuan and 430 million yuan, a year-on-year increase of 95.16% to 133.11%. According to an analysis report, the better-than-expected profit growth was mainly due to accelerated delivery schedules and profit realization at its controlled shipyard, Huangpu Wenchong, and its affiliated shipyard, Guangzhou Shipyard International. The report noted that against the backdrop of frequent geopolitical conflicts, the global supply chain is undergoing regional restructuring, leading to denser regional shipping networks and increased demand for feeder container services. Shipowners are accelerating orders for small and medium-sized container vessels. The average new orders for 3,000 to 6,000 TEU container ships over the past 12 months were 291% higher than the average of the previous decade. Huangpu Wenchong Shipyard, under COMEC, holds 19% of global orders for 3,000 to 6,000 TEU container ships and secured 41% of global new orders for 2026, ranking first worldwide in both categories. This positions the company as the primary beneficiary of the surge in demand for small and medium-sized container vessels.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment