In a report released yesterday, Roy Chen from UOB Kay Hian maintained a Buy rating on COSCO SHIPPING Ports (CSPKF – Research Report), with a price target of HK$5.90.
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Roy Chen’s rating is based on COSCO SHIPPING Ports’ solid financial performance and strategic advantages. The company reported a core net profit of US$301.8 million for 2024, which was a 4.9% increase year-over-year and aligned with expectations. Despite a slight miss in core operating profit due to weaker performances in some subsidiaries, the overall financial results were bolstered by strong contributions from joint ventures and associates, as well as reduced interest costs from successful debt refinancing.
Additionally, COSCO SHIPPING Ports is well-positioned to leverage its parent company’s extensive cargo flows and network, which supports its global expansion efforts. The company is projected to achieve low single-digit throughput growth in 2025, in line with industry averages. Trading at attractive price-to-earnings ratios for 2025 and 2026, and offering decent dividend yields, COSCO SHIPPING Ports presents a compelling investment opportunity, justifying the Buy rating with a target price of HK$5.90.