CICC: Raise target price of COSCO Shipping Holdings (01919) to HK$16.5 and adjust earnings forecast for the quarter in line with expectations.

Zhongjin released a research report stating that considering the delay in the resumption of navigation in the Red Sea due to geopolitical factors, COSCO Shipping Holdings' net profit for 2026 was raised by 14.8% to 23.5 billion yuan, and its net profit for 2027 was introduced for the first time at 17.2 billion yuan. Due to the industry's supply and demand pressures next year, but with higher dividend yields for Hong Kong stocks, the target price for COSCO Shipping Holdings A/H was raised by 8.6% and 13.8% to 17.7 yuan RMB and 16.5 Hong Kong dollars respectively. The "Outperform" rating is maintained. COSCO Shipping Holdings' performance in the fourth quarter of last year met market expectations. The revenue was 219.504 billion yuan, a year-on-year decrease of 6.14%, and the net profit was 30.868 billion yuan, a year-on-year decrease of 37.1%, with a corresponding basic earnings per share of 1.99 yuan. In the fourth quarter, revenue was 51.905 billion yuan, a year-on-year decrease of 12.21%, and net profit was 3.799 billion yuan, a year-on-year decrease of 65.39%. Based on current profit assumptions, the dividend yields for A/H shares in 2026 are 5% and 5.7% respectively.