COSCO SHIP HOLD (01919) declined over 4% following its earnings release. As of press time, the stock was down 4.05% to HK$13.98 with a turnover of HK$415 million.

On the news front, COSCO SHIP HOLD released its interim results showing revenue of RMB 109.099 billion, up 7.78% year-over-year, and shareholders' attributable profit of RMB 17.528 billion, up 3.9% year-over-year. Looking at the second quarter alone, the company's main operating revenue was RMB 51.139 billion, down 3.41% year-over-year, while net profit attributable to parent company was RMB 5.842 billion, down 42.25% year-over-year. Basic earnings per share stood at RMB 1.12, with a proposed interim dividend of RMB 0.56 per share.

Industry analysts previously noted that due to weakening cargo volumes at the margin, freight rates on both US and European routes continued to decline. In the short term, container shipping demand may depend primarily on US-China tariff policies. However, from a medium to long-term perspective, considering the relatively lackluster economic performance in Europe and the US, ongoing trade situation risks, most shipping companies still using the Cape Route for European services, and substantial capacity deliveries expected within the year, analysts expect container shipping companies' profitability to remain under pressure throughout the year. They recommend monitoring whether COSCO SHIP HOLD can maintain its significantly outperforming industry profitability under weak beta conditions and achieve alpha opportunities.