HK Stock Market Move | COSCO SHIPPING Energy Transportation (01138) rises over 4%, VLCC freight rates continue to hit new highs, institutions expect its Q3 performance to continue rising.

COSCO SHIPPING Energy Transportation (01138) rose over 4%, up 4.1% as of press time, at HK$18.62, with a turnover of HK$201 million. On the news front, driven by both geopolitical risk premiums and a tight supply-demand structure, VLCC freight rates continue to hit record highs. According to Shipping World, in the Atlantic China Welding Consumables, Inc. market, the West Africa-China route (TD15) round-trip average daily TCE is approximately US$441,081, and the US Gulf-China (TD22) route round-trip average daily TCE is approximately US$289,894, both setting record highs. Guotai Haitong believes that in the second quarter of this year, strait blockages disrupted trade and freight rates soared, and COSCO SHIPPING Energy Transportation still achieved high performance growth despite losses in operating days. It is expected that Q3 performance will continue to rise, and the full year will hit a new high. Geopolitics strengthens the medium-to-long-term logic, and it also carries the option of an unexpected upside in demand.