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<Research>HSBC Research Downgrades PACIFIC BASIN (02343.HK) to Underweight as Shr Price Gains Far Ahead of Fundamentals
Recommend 3 Positive 4 Negative 5 |
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PACIFIC BASIN (02343.HK) announced its annual results for the year ended December 2025 yesterday (3rd), HSBC Global Research issued a research report saying. Of which, the 2H25 results were below expectations due to a decline in the reported TCE rates. Although geopolitical disturbances in the Middle East may temporarily boost the Group's rental rates, the imbalance in supply and demand is expected to continue to weigh on profits. In addition, while the Group's share price has risen, the return on equity remained sluggish, and the market was overly optimistic. Therefore, the broker downgraded the Group from Hold to Underweight, but added its target price from $2.4 to $3. HSBC Global Research expected PACIFIC BASIN's performance this year to be moderate, mainly considering the continued weakness in China's real estate sector and high port inventories. The possibility of China providing strong support for global dry bulk demand is low. The accelerated delivery of ships, even if China resumes purchasing US soybeans, is unlikely to offset this. Besides, under the influence of the Middle East situation, the likelihood of resuming transits in the Red Sea in the short term is low, which will continue to increase tonne mile demand. AASTOCKS Financial News Website: www.aastocks.com |
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