Dahua Securities: Upgrades COSCO Shipping Holdings (01919) to "neutral" rating, target price raised to 14.54 Hong Kong dollars.

Dahua Jixian released a research report stating that COSCO Shipping Holdings (01919) is expected to see a 55% decrease in net profit for the third quarter of 2025, to 9.5 billion yuan, compared to the same period last year. However, due to the resilience of freight rates and growth in cargo volume, the performance is still better than expected. The recent rebound in freight index and the temporary suspension of port fees between China and the US are expected to support profitability in the fourth quarter of 2025. Although there are still risks of oversupply in 2026, strong net cash position (accounting for 63% of market value) should allow COSCO Shipping Holdings to flexibly navigate through downturns. The rating has been upgraded to hold, with the target price raised from 12 Hong Kong dollars to 14.54 Hong Kong dollars.