COSCO Shipping’ shares jump as first-half results beat market expectation

 

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Shares of COSCO Shipping are trading higher in Hong Kong for the third consecutive trading day and hit as high as HK$7.87 on Tuesday morning. Its Shanghai-traded shares also rallied more than 5%.

The company, the world’s largest shipping company, said on Monday that it expects its first-half net profit to plunge by about 74.5% from a year earlier to 16.55 billion yuan, due to sliding revenue from the container shipping business during the period.  

Due to the changes in the supply and demand balance in the container shipping industry, the China Containerized Freight Index tumbled by 69.31% year over year in the fist half, and given the high has last year, the company’s container shipping business revenue declined, it said.

Morgan Stanley, however, still viewed the preliminary interim results of the firm as estimate-beating and HSBC Global Research upgraded the rating for the stock to Buy, with its H-share target price lifted to HK$9.