Yamato: Downgrade COSCO Shipping Holdings (01919) to "Hold" with a target price of 14 Hong Kong dollars.

Daiwa released a research report stating that COSCO Shipping Holdings (01919) had a stable performance in the third quarter of 2025, providing generous shareholder returns through share repurchases and dividends. However, it is expected that profit pressure will increase in 2026, leading to a downgrade from outperform to hold rating. This is due to the lack of catalysts in stock price, weak profit prospects, and limited upside in target price, which is maintained at HK$14. The bank points out that COSCO Shipping Holdings had a stable performance in the third quarter of 2025. The bank has raised its earnings per share forecast for 2025 by 18% to reflect better-than-expected third-quarter performance, but has adjusted its earnings per share forecast for 2026 to 2027 by 23% to 47% based on revised forecasts for freight rates and cargo volumes.