JP Morgan: Raises the target price for The Pacific Shipping (02343) by 13% and reaffirms "Overweight" rating.

J.P. Morgan released a research report stating that it has raised the target price for The Pacific Shipping (02343) by 13.2%, from HK$3.80 to HK$4.30, and reiterated its Overweight rating. The Pacific Shipping's performance in the first half of 2026 significantly exceeded expectations, with a post-tax net profit reaching US$105 million (a year-on-year increase of 310%, and a half-year increase of 229%), exceeding market expectations by 67% and the banks expectations by 80%. At the same time, the company announced an interim dividend of HK$0.155 per share (interim dividend yield of 4.6%, payout ratio of 97%). Given that more than half of the shipping days in the second half of 2026 have been secured at highly attractive rates, and current forward freight agreements (FFA) indicate that performance in the second half will remain strong, the bank believes that despite the strong performance in the first half of 2026, the profit growth momentum will remain stable. The bank has raised its forecasts for post-tax net profit for the fiscal years 2026-2028 by 84%, 10%, and 10%, respectively.