HK Stock Market Move | COSCO Shipping Energy Transportation (01138) surged more than 8% after reporting a profit, with an expected annual net profit attributable to the company's owners increasing by approximately 17.2% year-on-year.

COSCO Shipping Energy Transportation (01138) rose more than 8% after the profit announcement, reaching 7.2 Hong Kong dollars, with a trading volume of 26.474 million Hong Kong dollars at the time of writing, up 8.43%. On the news front, COSCO Shipping Energy Transportation announced that the group expects to achieve a net profit attributable to owners of the company of approximately 3.96 billion yuan for the year ending December 31, 2024, an increase of approximately 5.8 billion yuan from the restated net profit of approximately 3.38 billion yuan for the year ending December 31, 2023, an increase of approximately 17.2%. Guotai Junan believes that the rigidity of tanker supply will continue in the coming years, and stricter sanctions are expected to further reduce effective capacity. The decline in the industry outlook for oil shipping in the second half of 2024 will intensify demand concerns, but oil shipping demand is still expected to continue to grow. Traditional energy demand remains resilient, and increased oil production will benefit the growth of oil shipping demand. Geopolitical effects on oil prices may weaken in the next two years, with a global increase in oil production expected to drive growth in oil trade. Expectations for future oil shipping supply and demand are expected to be better than expected, with options for falling oil prices. Market expectations are at a low point, with dividend support providing a valuation floor, making the risk-return ratio more attractive. Keep an eye on changes in geopolitical situations and timing for counter-cyclical opportunities.