HK Stock Market Move | COSCO SHIPPING Energy Transportation (01138) rises over 5%; the tanker shipping industry's prosperity still has supporting logic, and Q4 tanker performance is expected to increase significantly.

COSCO SHIPPING Energy Transportation (01138) rose over 5%, up 5.48% as of press time at HK$17.52, with a turnover of HK$320 million. On the news front, COSCO SHIPPING Energy Transportation reported third-quarter revenue of RMB10.097 billion, up 82.89% year on year; net profit attributable to shareholders was RMB2.844 billion, up 235.04% year on year and up 19.9% quarter on quarter. Shenwan Hongyuan Group said the third-quarter net profit was slightly below its expectation of RMB3.32 billion, mainly due to a higher tax rate. From early September to October 23, VLCC average freight rates were about US$556,000/day, up 270% from the third quarter, and tanker performance is expected to increase significantly in the fourth quarter. Orient believes that although Middle East crude oil exports have clearly recovered, ship-to-ship transfers at straits and loading and unloading waiting times continue to tie up vessels. The bank believes the impact of geopolitical conflict on oil shipping is increasingly reflected in persistent turnover losses; even if the conflict does not escalate further, as long as blockades, ship attack risks and inefficient transfer arrangements continue, cargo recovery will be difficult to effective capacity release in tandem, and "cargo recovery with damaged effective supply" remains the core logic supporting industry prosperity.