Shares of COSCO SHIP ENGY (ASX: 01138) surged more than 7% during the trading session. As of the time of writing, the stock price is up 5.34%, currently quoted at HK$13.22, with a turnover of HK$210 million.
Analyst Report Highlights Positive Outlook
A recent research report from Huayuan Securities noted that geopolitical headwinds are gradually dissipating, and subsequent earnings flexibility for COSCO SHIP ENGY is anticipated. The company is projected to achieve a net profit attributable to shareholders of approximately RMB 4.5 billion for the first half of 2026. Compared to the restated figure for the same period last year, this represents an expected increase of about RMB 2.6 billion, a year-on-year rise of roughly 141%. Based on this calculation, the estimated net profit for the second quarter of 2026 is around RMB 2.3 billion, marking an approximate 100% increase year-on-year and a sequential increase of about 7%. This suggests the potential for three consecutive quarters of sequential growth starting from the fourth quarter of 2025. While geopolitical conflicts present a double-edged sword, the company's second-quarter performance remained robust on a sequential basis. By late June, the company had no vessels detained in the Persian Gulf, and fleet operations had largely returned to normal. If exports from the Middle East continue to recover, the company's performance for the third quarter of 2026 could see a significant sequential improvement, fully demonstrating earnings flexibility in the context of a "major era for oil shipping." Given the company's leading position in the oil shipping industry and the optimistic outlook for the oil shipping market, Huayuan Securities maintains a "Buy" rating.
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