HK Stock Market Move | COSCO Shipping Energy Transportation (01138) rose nearly 5% again. The United States announced a new round of sanctions against entities and oil tankers related to Iran.

COSCO Shipping Energy Transportation (01138) rose nearly 5%, rising 5.29% to HK$13.54 as of the press time, with a turnover of HK$108 million. On the news front, according to CCTV News, on January 23, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced a new round of sanctions on multiple entities and vessels related to Iran's energy and shipping system, focusing on shipping and management networks that assist Iran's oil, energy, and derivative exports. Caitong released a research report stating that China Merchants Energy Shipping and COSCO Shipping Energy Transportation benefit significantly from the scale of oil tanker capacity. Taking VLCC as an example, for every $10,000 increase in TCE, China Merchants Energy Shipping and COSCO Shipping Energy Transportation are expected to increase their annual net profits by 1.1 billion yuan and 950 million yuan respectively. The bank pointed out that looking back at the peak of oil shipping prosperity in the past decade, according to iFinD's consensus expectations, after adjusting for profit forecasts, the PE ratio can generally reach 13-15 times. Currently, the valuation of A-share listed oil shipping companies still has some room for improvement. If the compliance market supply and demand further improves, there is potential to further increase the valuation of oil shipping companies, while also paying attention to the discount opportunities of related Hong Kong-listed targets.