HK Stock Market Move | COSCO SHIPPING Energy Transportation (01138) rises over 4%; the VLCC market is currently staging a strong rebound; JP Morgan says the company's earnings still have significant upside potential.

COSCO SHIPPING Energy Transportation (01138) rose over 4%, up 4.05% as of press time, at HK$19.03, with a turnover of HK$88.2642 million. On the news front, the VLCC (Very Large Crude Carrier) market is currently staging a strong rebound, with three-year VLCC time charter deals concluded at US$100,000/day, providing a stronger signal for medium-term pricing. Notably, tensions in the Middle East remain elevated. According to reports, the United States will deploy an additional aircraft carrier and 10,000 troops to the Middle East. Previously, Trump also stated that if a satisfactory agreement cannot be reached, he may intensify bombing after the midterm elections rather than ending the war. In addition, JPMorgan recently pointed out that its base-case scenario assumes average VLCC daily time charter rates of US$135,000 and US$100,000 for 2026 and 2027, respectively, far below current spot levels. Under the 2027 base case of US$100,000 per day, COSCO SHIPPING Energy Transportation's H-share and A-share price-to-earnings ratios are approximately 11x and 14x, respectively; if the average daily time charter rate is US$178,000, the multiples would drop to approximately 6x and 7x, indicating that earnings still have significant upside potential.