Bank of America Securities: Downgrades China COSCO Shipping Energy Transportation's (01138.HK) average profit forecast for the next 3 years by 20%, target price lowered to 7.5 Hong Kong dollars.

According to the Wisdom Financial APP, Bank of America Securities released a research report stating that it has lowered its average earnings forecast for China COSCO Shipping Energy Transportation Co., Ltd. (01138.HK) by 20% from this year to 2027, reflecting first-quarter performance. The target price has been lowered from HK$8.75 to HK$7.5, representing 0.9 times the net asset value, taking into account the forecasted net asset return rate of 7.4% next year. The investment rating is "Buy". Bank of America Securities pointed out that China COSCO Shipping Energy Transportations quarterly performance was below the bank's and market expectations, mainly due to weak international freight rates and high chartering costs. The bank expects that in the current quarter, with the strengthening of market freight rates, profitability will improve quarter by quarter, and it is expected that profits in the second half of the year will be basically flat compared to the first half of the year.