Damo: The tanker market has not peaked, and next year's performance will be more ideal

The Zhitong Finance App learned that Morgan Stanley released a research report saying that the market generally regards this year as the highest in the tanker market's upward cycle, but due to delays in the reopening of the Strait of Hormuz, the bank believes that next year's performance may be superior to this year's. The report mentioned that demand for replenishment due to the continued decline in global oil inventories, the increase in demand for shipping imports driven by China's lifting of fuel export restrictions, and the geopolitical effects brought about by the interruption in the Strait of Hormuz all support the maintenance of high spot and regular chartered freight rates.

Damo expects that the tanker market will continue to be in short supply next year. The bank raised COSCO Haineng's (01138) earnings forecasts for 2027 and 28 by 40% and 27% respectively, and raised China Merchants Shipping's (601872.SH) earnings estimates by 41% and 35% per share, maintaining target prices of HK$26 and RMB 25.1, respectively. However, due to changes in the bank's exchange rate forecast, the target price for COSCO Haineng (600026.SH) A shares was lowered from RMB 31.6 to RMB 30.4.