HK Stock Market Move | COSCO Shipping Energy Transportation (01138) rose by over 4% against the market trend, with VLCC daily rates reaching a new high. Increased production and sanctions are gradually being realized as two major factors.

COSCO Shipping Energy Transportation (01138) rose more than 4% against the market trend, with an increase of 3.69% to HK$11.51 at the time of writing, with a turnover of HK$182 million. In terms of news, VLCC daily rental rates hit a new high, surpassing $125,000. The VLCC TD3C-TCE index on the 13th was $125,800 per day, up 20% daily and 23% weekly. China Securities Co., Ltd. pointed out that the driving force behind the recent increase in VLCC freight rates comes from the gradual realization of two sustainable logics of increased production and sanctions, with both total demand and structural aspects receiving continuous marginal benefits, while the compliance capacity growth on the supply side is limited. The bank pointed out that the US tanker company OET published the locked-in tanker rental levels for the fourth quarter, with 80% of VLCCs locked in at $88,000 per day. Assuming an average VLCC rental rate of $100,000 per day in the fourth quarter, COSCO Shipping Energy Transportation's net profit for the fourth quarter will be between $2-2.5 billion, continuing to maintain a "buy" rating on COSCO Shipping Energy Transportation's Hong Kong-listed shares.