HK Stock Market Move | COSCO SHIPPING Energy Transportation (01138) falls over 3%; the recent VLCC freight rate pullback is a correction from abnormally high levels, and the pullback offers an attractive entry point.

COSCO SHIPPING Energy Transportation (01138) fell over 3%, down 1.99% as of press time to HK$17.28, with turnover of HK$189 million. On the news front, HSBC Global Research recently issued a report noting that the recent VLCC freight rate pullback in COSCO SHIPPING Energy Transportation is a correction from abnormally high levels rather than a cyclical turn, and that sanctions-waiver concerns appear to be overblown. Of the 382 tankers sanctioned by the US, only about 22 vessels, equivalent to 1.5% of the VLCC fleet, are suitable for mainstream trade, and effective capacity remains constrained; the pullback offers an attractive entry point. The bank raised its 2026 net profit forecast by 51% to RMB19.8 billion, 62% above market expectations, mainly due to strong freight rates and high spot exposure, and expects net profit of approximately RMB4 billion and RMB11 billion in the third and fourth quarters of this year respectively; it also raised its VLCC average daily time charter rate assumptions. On the evening of October 28, COSCO SHIPPING Energy Transportation announced its results for the first three quarters of 2026, with revenue of approximately RMB25.243 billion, up 47.03% year on year; net profit attributable to shareholders of the listed company of approximately RMB7.389 billion, up 171.9% year on year; and basic earnings per share of RMB1.3514.