CICC: First Pacific Shipping (02343) upgraded to buy rating with a target price of HK$3.2

According to the Zhitong Finance and Economics APP, Morgan Stanley released a research report stating that they are initiating coverage on Pacific Shipping (02343) for the first time, giving it a "hold" rating with a target price of 3.2 Hong Kong dollars. The bank believes that the acceleration of shipments due to US tariffs will put pressure on TCE prices in the second half of this year. However, with the restart of inventory replenishment cycles and the rebound in demand for small bulk goods driven by the construction industry, demand is expected to recover by 2026. Additionally, the growth of capacity is slowing down, with global fleet expansion slowing to around 3%, and the aging of ships leading to an increase in the number of old ships being dismantled.