Bank of America Securities: Increased the target price of COSCO Haineng (01138) by 16.3%, optimistic about the results and dividends for the second half of the year

The Zhitong Finance App learned that Bank of America Securities released a research report stating that the target price of COSCO Haineng (01138, 600026.SH) H shares was raised by 16.3%, from HK$21.5 to HK$25, to maintain a “buy” rating; the target price for A shares was raised from RMB 28 to RMB 30.

The bank pointed out that due to the increase in oil exports from the Hormuz Strait in the Middle East, tanker freight rates have soared to historic highs, and COSCO Marine's profit and dividend payment capacity far exceeded market expectations. The report predicts that the company's earnings per share from 2026 to 27 will be 20% higher than market forecasts, and dividend rates for the same period are expected to reach 7.7% and 9.2%, respectively.

In addition, the bank expects the company's net profit for the third quarter to reach 3.6 billion yuan, up 50% from quarter to quarter; to reach 6.3 billion yuan in the fourth quarter, up 75% from quarter to quarter, due to a recovery in international traffic volume and a sharp rise in rates from quarter to quarter.

The bank sharply raised the company's 2026-28 earnings forecast per share to HK$3.03, HK$3.66 and HK$1.50 to reflect the sharp rise in rates. The new target price reflects an average return on equity of 18.8% from 2027 to 28; the main catalyst is strong performance in the fourth quarter and attracting dividends.