HK Stock Market Move | COSCO Shipping Energy Transportation (01138) rises by over 5% again, with a year-on-year net profit increase of 17.2%. US sanctions against Russia may make shadow fleets leave the market.

COSCO Shipping Energy Transportation (01138) rose more than 5% again, as of the press release, up 2.85% to HK$7.94, with a turnover of HK$371.08 million. In terms of news, COSCO Shipping Energy Transportation announced that it is expected to achieve a net profit attributable to the shareholders of the listed company of approximately RMB 3.96 billion for the year 2024, an increase of about 17.2% compared to the same period last year. Huachu Securities pointed out that considering that the chemical supply chain business for the first three quarters has not yet been consolidated, the estimated non-net profit attributable to mothers for the fourth quarter of 2024 is expected to be RMB 600 million, a year-on-year decrease of 25%. In addition, the U.S. Treasury Department recently included Russian oil traders, oil field suppliers, and Russian energy officials on the sanctions list, while more than 180 vessels were sanctioned for allegedly forming a "shadow fleet" to transport Russian export oil subject to U.S. sanctions. Morgan Stanley said that sanctions may cause the "shadow fleet" to gradually leave the market, which will benefit the legitimate tanker market. The bank believes that the negative sentiment reflecting weaker-than-expected performance in the fourth quarter of 2024 may improve. The bank's view on COSCO Shipping Energy Transportation is positive.