HK Stock Market Move | COSCO Shipping Energy Transportation (01138) continues to rise by over 5%, US sanctions on shadow fleet benefit compliant cruise market. The company expects annual net profit to increase by over 17%.

COSCO Shipping Energy Transportation (01138) rose more than 5% again, rising 5.24% to 7.63 Hong Kong dollars as of press time, with a turnover of 44.2074 million Hong Kong dollars. On the news front, the U.S. Treasury Department last Friday (January 10) sanctioned Russian oil traders, oil field suppliers, and Russian energy officials, and more than 180 ships were suspected of forming a "shadow fleet" to transport Russian oil exports sanctioned by the United States. Morgan Stanley released a research report stating that the sanctions may gradually drive the "shadow fleet" out of the market, which will benefit the legitimate tanker market. The bank believes that the negative sentiment reflecting weaker-than-expected performance in the peak season of the fourth quarter of 2024 may turn positive. In addition, COSCO Shipping Energy Transportation recently released a profit announcement. Zhongjin pointed out that COSCO Shipping Energy Transportation is expected to achieve a net profit attributable to the parent of 3.96 billion in 2024, a year-on-year increase of 17.2%; and a non-net profit of 3.95 billion, a year-on-year decrease of 4.4%. The difference in growth rates before and after non-deduction is mainly due to the confirmation of non-recurring gains and losses in 2024 +0.1 billion, compared to -0.75 billion in 2023. The bank pointed out that the logic of tight VLCC supply remains unchanged, and the stricter sanctions on shadow tankers may further increase the demand for compliant market capacity. The supply and demand are expected to further improve, and industry cycles are trending upward, with good prospects for company profit elasticity, undervaluation, and dividends providing bottom support.