Daiwa Maintains "Hold" on COSCO SHIP HOLD, Raises Target Price to HK$15

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Yesterday

Daiwa has released a research report stating that the current developments in the Middle East are highly uncertain. Management of COSCO SHIP HOLD (01919) indicated that while the spillover effects have so far been limited, they warned that the impact could intensify if disruptions persist for an extended period. Management noted that most fuel purchases are made on the spot market, and they anticipate fuel costs will rise by approximately $10 per ton, which would cumulatively increase costs by $78 million. COSCO SHIP HOLD is currently negotiating fuel surcharges with its customers. The firm has lowered its profit forecasts for the company for 2026 to 2027 by 2% to 13%, while raising its target price from HK$14 to HK$15 and maintaining a "Hold" rating.

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