HK Stock Market Move | Pacific Shipping (02343) fell by more than 9% in intra-day trading. Geopolitical risks continue to disrupt the supply chain, and the rental fees for both large and small ships may expand.

The Pacific Shipping (02343) fell more than 9% intraday, with a cumulative decline of over 20% after its performance announcement. As of the time of writing, it fell by 5.96%, to 2.83 Hong Kong dollars, with a turnover of 226 million Hong Kong dollars. Galaxy Futures pointed out that the recent geopolitical conflicts in the Middle East have been recurring, and the volume of ships passing near the Strait of Hormuz remains low. If the war continues, the operating costs of ships may continue to rise against the backdrop of high oil prices. In addition, due to the stalemate in the Middle East conflict, the trade volume of commodities such as food, steel, and fertilizers in the Gulf region has decreased significantly. Some of the ships originally bound for the Middle East have been redeployed to the Indian Ocean route, impacting the rental rates of that route, with the trend of different ship sizes currently emerging. Furthermore, The Pacific Shipping recently announced its 2025 performance: revenue of 20.81 billion US dollars, a 19% year-on-year decrease; net profit attributable to shareholders of 58.2 million US dollars, a 56% year-on-year decrease. The performance was lower than expected, mainly due to the company's TCE realization being lower than expected. Zhongjin Securities stated that due to the impact of industry freight rates, the company achieved a year-on-year decline in freight rates for the whole year, but still outperformed the industry average level.