HK Stock Market Move | SITC (01308) drops nearly 3% in the morning, Morgan Stanley believes that market reaction to the company's performance is limited, with upside risks remaining in demand in the Asian region.

SITC (01308) fell by nearly 3% in the morning session, dropping 1.98% to HK$4.46 as of press time, with a turnover of HK$251.648 million. In terms of news, SITC recently released a profit forecast for 2025. Morgan Stanley pointed out that SITC released preliminary results for 2025, with an expected net profit of $1.2 billion to $1.23 billion (market consensus at $1.19 billion), an increase of 16% to 18.9% year-on-year. Morgan Stanley noted that the company's performance slightly exceeded market consensus, but market reaction to last year's profits was limited. Morgan Stanley continued to point out that there are upward risks for demand in the Asian region due to supply chain shifts and geopolitical dynamics, while the ongoing downturn in the global container shipping industry poses downward risks. If Sino-Japanese trade significantly deteriorates, SITC's relatively high exposure to the Japanese route could bring risks.