HK Stock Market Move | CATHAY PAC AIR (00293) fell more than 3%, UBS expects Cathay Pacific Cargo to be affected by US policies in the short term.

CATHAY PAC AIR (00293) fell by more than 3%, dropping by 3.13% to HK$9.92 as of the time of writing, with a turnover of HK$1.16 billion. On the news front, the United States Postal Service (USPS) announced earlier that it would temporarily suspend accepting packages from Mainland China and Hong Kong starting from February 4th local time. However, it reversed the decision and resumed accepting related packages from February 5th. The exemption of tariffs remains unchanged. A report from UBS pointed out that as CATHAY PAC AIR has more than 50% of its cargo volume and e-commerce related to overseas shipments, it is expected that the short-term loading rates and revenue will be affected. Every 1 percentage point change is expected to affect Cathay Pacific's profitability by 2 percentage points by 2025. However, the bank believes that this will not significantly harm Cathay's profitability, as the supply and demand dynamics in the passenger sector are expected to remain strong, thereby maintaining profit margins and return on equity.