A Look At COSCO SHIPPING Energy Transportation (SEHK:1138) Valuation As VLCC Rate Optimism Faces Fresh Scrutiny

Simply Wall St.03-11

AdvertisementWhy recent VLCC rate concerns matter for COSCO SHIPPING Energy Transportation (SEHK:1138) Recent commentary questioning how long elevated Very Large Crude Carrier freight rates can last ...

Source Link

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

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2618789968?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/9551704-choice1-main-header/1585186907289","is_english":true,"pubTime":"2026-03-11 00:14","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2618789968","market":"sg","top_or_hot":-1,"title":"A Look At COSCO SHIPPING Energy Transportation (SEHK:1138) Valuation As VLCC Rate Optimism Faces Fresh Scrutiny","media":"Simply Wall St.","content":"<div>\n<p>AdvertisementWhy recent VLCC rate concerns matter for COSCO SHIPPING Energy Transportation (SEHK:1138) Recent commentary questioning how long elevated Very Large Crude Carrier freight rates can last ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/energy/hkg-1138/cosco-shipping-energy-transportation-shares/news/a-look-at-cosco-shipping-energy-transportation-sehk1138-valu-1\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>A Look At COSCO SHIPPING Energy Transportation (SEHK:1138) Valuation As VLCC Rate Optimism Faces Fresh Scrutiny</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nA Look At COSCO SHIPPING Energy Transportation (SEHK:1138) Valuation As VLCC Rate Optimism Faces Fresh Scrutiny\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-03-11 00:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/energy/hkg-1138/cosco-shipping-energy-transportation-shares/news/a-look-at-cosco-shipping-energy-transportation-sehk1138-valu-1><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>AdvertisementWhy recent VLCC rate concerns matter for COSCO SHIPPING Energy Transportation (SEHK:1138) Recent commentary questioning how long elevated Very Large Crude Carrier freight rates can last ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/energy/hkg-1138/cosco-shipping-energy-transportation-shares/news/a-look-at-cosco-shipping-energy-transportation-sehk1138-valu-1\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SG9999014674.SGD","symbol_name":"Nikko AM All China Equity A SGD","start_time":0,"source_url":"https://simplywall.st/stocks/hk/energy/hkg-1138/cosco-shipping-energy-transportation-shares/news/a-look-at-cosco-shipping-energy-transportation-sehk1138-valu-1","article_id":"2618789968","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9551704-choice1-main-header/1585186907289"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/energy/hkg-1138/cosco-shipping-energy-transportation-shares/news/a-look-at-cosco-shipping-energy-transportation-sehk1138-valu-1","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2618789968","pubTimestamp":1773159255,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Why recent VLCC rate concerns matter for COSCO SHIPPING Energy Transportation (SEHK:1138)\nRecent commentary questioning how long elevated Very Large Crude Carrier freight rates can last has put fresh attention on COSCO SHIPPING Energy Transportation, where a strong rally and a higher P/B ratio are raising valuation questions.\nSee our latest analysis for COSCO SHIPPING Energy Transportation.\nAt a share price of HK$18.05, COSCO SHIPPING Energy Transportation has seen strong momentum, with a 30...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"SG9999014674.SGD":"Nikko AM All China Equity A SGD","01138":"中远海能","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK1166":"石油与天然气的储存和运输","BK1535":"港口运输股"},"translate_title":"随着VLCC费率乐观情绪面临新的审查，中远海运能源运输（SEHK：1138）的估值一览","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"01138":0.9},"content_text":"AdvertisementWhy recent VLCC rate concerns matter for COSCO SHIPPING Energy Transportation (SEHK:1138) Recent commentary questioning how long elevated Very Large Crude Carrier freight rates can last has put fresh attention on COSCO SHIPPING Energy Transportation, where a strong rally and a higher P/B ratio are raising valuation questions. See our latest analysis for COSCO SHIPPING Energy Transportation. At a share price of HK$18.05, COSCO SHIPPING Energy Transportation has seen strong momentum, with a 30 day share price return of 21.96% and a 90 day share price return of 95.98%. The 1 year total shareholder return of 189.40% and the very large 5 year total shareholder return highlight how sentiment around VLCC rates and profits has been building over a longer stretch. If this VLCC driven move has you thinking about other potential beneficiaries of global energy infrastructure, it could be a good moment to scan our list of 23 power grid technology and infrastructure stocks as a next step in your research. With the share price now above the average analyst target and earlier commentary suggesting the P/B ratio reflects very optimistic profit assumptions, investors may need to consider whether there is still a buying opportunity or if the market is already pricing in future growth. Price-to-earnings of 26.3x: Is it justified? On a P/E of 26.3x at the last close of HK$18.05, COSCO SHIPPING Energy Transportation trades at a clear premium to both its own fair P/E estimate and sector peers. The P/E multiple compares the current share price with earnings per share, so a higher ratio usually reflects the market paying more for each unit of earnings. For COSCO SHIPPING Energy Transportation, this richer multiple sits alongside earnings growth of 5.7% over the past year and a 5 year earnings growth rate of 31% per year, as well as forecasts that earnings may continue to grow and revenue is expected to increase by 9.5% per year. However, the company is described as expensive relative to an estimated fair P/E of 13.1x, and also compared with an industry average of 13.3x and a peer average of 10.5x. That is a wide gap for the market to maintain, and it suggests investors are currently willing to pay a much higher multiple than the level the fair ratio analysis indicates the valuation could move toward over time. Result: Price-to-earnings of 26.3x (OVERVALUED) Explore the SWS fair ratio for COSCO SHIPPING Energy Transportation However, you also need to weigh risks such as a sharp reversal in VLCC rates or a market rethink on paying a premium P/E for this earnings profile. Find out about the key risks to this COSCO SHIPPING Energy Transportation narrative. Another view using our DCF model While the P/E of 26.3x points to an expensive share price, our DCF model goes even further. On this approach, COSCO SHIPPING Energy Transportation at HK$18.05 trades well above an estimated future cash flow value of HK$1.93. This raises the question of how much optimism is already built in. Look into how the SWS DCF model arrives at its fair value. 1138 Discounted Cash Flow as at Mar 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out COSCO SHIPPING Energy Transportation for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 226 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Next Steps If this mix of strong past returns and rich valuation has you on the fence, take a moment to review the full story for yourself and weigh both sides of the argument, including 2 key rewards and 1 important warning sign. Looking for more investment ideas? If you are questioning what to do next after COSCO SHIPPING Energy Transportation, this is the point where casting a wider net can really sharpen your decision making.  Spot potential value opportunities early by checking companies that appear mispriced on quality and fundamentals through our list of 226 high quality undervalued stocks. Prioritise resilience by focusing on companies that pair financial strength with lower risk profiles using our 295 resilient stocks with low risk scores. Hunt for lesser known names with solid underlying metrics by scanning our screener containing 578 high quality undiscovered gems before they attract broader attention.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.38.0","shortVersion":"4.38.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2618789968","isCrawlerRequest":true}