Xiaomo: The target price for maintaining COSCO Haineng's (01138) “gain” rating was lowered from HK$13 to HK$12

The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it maintained the “increase” rating of COSCO Haineng H shares (01138), and the target price was lowered from HK$13 to HK$12; maintaining a “neutral” rating for COSCO Haineng A shares (600026.SH), the target price was lowered from RMB 14 to RMB 13. The report points out that although the market is concerned that current shipping disruptors may gradually ease, it is still expected that crude oil tanker profits will remain resilient next year, and investors are advised to buy COSCO Haineng H shares at a low price.

According to Komo's analysis, although industry data shows that global tanker capacity and demand are expected to increase by 2.2% and 1%, respectively, next year, the actual supply and demand relationship is still quite tight. Among them, demand for crude oil tankers is expected to increase by 0.9% year on year, while supply only increased by 0.7%. In particular, supply and demand for very large tankers (VLCCs) is more tight; at the same time, stable OPEC production will also help maintain the relevant situation.

Furthermore, the supply of capacity faces structural limitations. More than 20% of the world's tankers are over 20 years old, and are increasingly concentrated in “shadow fleets”, limiting their ability to participate in compliant trade. Geopolitical frictions have also further boosted transportation demand. As sanctions against Russian, Iranian and Venezuela-related ships expand, about 18% to 20% of the global fleet is participating in related non-compliant shipments.