On July 8, COSCO Haikong’s a shares opened down by nearly 7%. As of press release, the decline narrowed to more than 5% to 30.92 yuan, with a market value of 380.8 billion yuan.
On July 7, COSCO Haikong released the performance forecast for the first half of 2021, saying that it is expected that the net profit attributable to shareholders of Listed Companies in the first half of 2021 will be about 37.093 billion yuan, an increase of 3162.36% compared with the profit of 1.137 billion yuan in the first half of 2020; Meanwhile, the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was about 37.021 billion yuan, up 4097.39% from 882 million yuan in the same period of last year.
During the reporting period, the container shipping market continued to improve. The average value of China’s export container freight composite index (CCFI) was 2066.64 points, an increase of 133.86% compared with the same period of the previous year, and an increase of 92.44% compared with the second half of the previous year.
Regarding the sharp increase in performance, COSCO explained that during the reporting period, the company gave full play to the supporting role of container logistics supply chain, fully guaranteed the global transportation services through measures such as increasing transportation capacity, ensuring the supply of containers and providing services, realized the simultaneous rise of volume and price, and achieved a substantial increase in overall performance compared with the same period last year.
In the secondary market, as of the close on July 7, COSCO Haikong rose 5.37% to close at 32.60 yuan / share, up 166% in the year. Compared with the lowest price of 3.14 yuan per share in June last year, the company’s share price has risen 10 times.
At the same time, institutions are also full of confidence in COSCO’s future market.
According to China CITIC construction investment, COSCO Haikong’s net profit attributable to shareholders of Listed Companies in the second quarter was about 21.6 billion yuan, slightly higher than the bank’s previous forecast of 20 billion yuan. Continue to maintain the company’s “buy” rating, the target price of 38 yuan.
According to the report of Morgan Stanley, COSCO Haikong has a strong performance forecast in the second quarter. Due to the high demand season, it is expected that the market will maintain a high boom in the next two to three months, which will further push the stock price higher. The target price of H shares of COSCO Haikong will be increased by 46% to HK $21.2, and the target price of a shares will be increased by 52% to HK $37.2. The report points out that in view of the relatively stable supply growth this year and next and the stable recovery of Global trade demand, the cycle of the container transportation industry will move upward into 2022. Based on the higher freight assumption, the company’s recurrent net profit forecast for this year and next year will be increased by 99% and 57% respectively.
Reprint indicated source：Shine Trader Limited Live information