Pacific Basin Shipping Limited (HK:2343)
:2343
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Pacific Basin Shipping
(2343)
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Rating:63Neutral
Price Target:
HK$3.50
â–²(12.18% Upside)
Action:Reiterated
Date:03/26/26
The score is driven primarily by solid financial resilience (low leverage and positive free cash flow) and a constructive earnings-call outlook focused on liquidity and shareholder returns. These positives are tempered by weak technical momentum (price below key moving averages with negative MACD) and a relatively high P/E for a cyclical shipping business experiencing declining revenue and compressed margins.
Positive Factors
Balance sheet strength
Materially lower leverage and a substantial equity base create durable financial resilience through shipping cycles. This balance-sheet strength supports capital returns, selective fleet investment and access to committed facilities, reducing refinancing risk and preserving optionality during multi-quarter freight volatility.
Negative Factors
Revenue and margin compression
A pronounced downcycle in freight rates has materially reduced top-line and profitability. If weak demand persists, lower margins and volatile TCEs can compress retained earnings and weaken multi-quarter earnings power, limiting sustainable payout capacity and slowing balance-sheet rebuild.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Materially lower leverage and a substantial equity base create durable financial resilience through shipping cycles. This balance-sheet strength supports capital returns, selective fleet investment and access to committed facilities, reducing refinancing risk and preserving optionality during multi-quarter freight volatility.
Read all positive factors
Pacific Basin Shipping (2343) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$17.01B
Dividend Yield2.88%
Average Volume (3M)16.69M
Price to Earnings (P/E)11.9
Beta (1Y)0.77
Revenue Growth-19.46%
EPS Growth-55.11%
CountryHK
Employees5,003
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)<0.01
Shares Outstanding5,166,725,600
10 Day Avg. Volume13,984,147
30 Day Avg. Volume16,692,496
Financial Highlights & Ratios
PEG Ratio-0.48
Price to Book (P/B)0.84
Price to Sales (P/S)0.73
P/FCF Ratio10.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$3.43Price Target Upside9.78% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.03
Revenue Forecast (FY)HK$2.40B
Pacific Basin Shipping Business Overview & Revenue Model
Company Description
Pacific Basin Shipping Limited, an investment holding company, provides dry bulk shipping services worldwide. It also offers shipping consulting, ocean shipping, crewing, secretarial, and agency and ship management services; and engages in the ves...
How the Company Makes Money
Pacific Basin primarily makes money by earning freight income from transporting dry bulk cargoes using its Handysize and Supramax vessels. Its revenue model is built around (1) operating income from voyage and time-charter employment of its owned ...
Pacific Basin Shipping Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presents a resilient financial and operational performance in 2025 supported by a strong balance sheet, healthy liquidity, active fleet renewal and shareholder-friendly capital returns (dividends and buybacks). However, notable headwinds remain: softer freight markets in 2025 led to declines in TCEs and a 28% drop in operating performance before overheads, while geopolitical risks and industry supply growth pose near-term uncertainty. On balance the company emphasized its financial flexibility, disciplined capital allocation and positive near-term FFA signals, outweighing the challenges described.Positive Updates
Strong profitability and cash generation
Generated EBITDA of USD 263.1 million, underlying profit of USD 39.2 million and net profit of USD 58.2 million in 2025; operating cash flow of USD 229 million for the year.
Negative Updates
Top-line and operating performance contraction
Top line decreased in 2025 and operating performance before overheads fell 28% YoY to USD 142 million, reflecting a softer freight market and revenue pressures.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong profitability and cash generation
Generated EBITDA of USD 263.1 million, underlying profit of USD 39.2 million and net profit of USD 58.2 million in 2025; operating cash flow of USD 229 million for the year.
Read all positive updates
Company Guidance
The call guided that Pacific Basin will keep a disciplined, shareholder‑focused strategy: an amended dividend policy to pay 50% of annual net profit (excluding disposal gains) and up to 100% when in a net‑cash position, a continued share‑buyback program of up to USD 40m in 2026, and selective fleet renewal and growth (commitment to 40,000 dwt Handysize newbuilds for USD 119.2m, 4 Handysize deliveries in 2028, 4 Ultramax LEV in 2028–29 and 14 long‑term chartered vessels with purchase options to 2032 — ~22 potential additions). Financial flexibility remains a priority with net cash of USD 134m, available committed liquidity of USD 756m, an undrawn committed facility of USD 485.5m, a new USD 250m sustainability‑linked facility, EBITDA of USD 263.1m, underlying profit USD 39.2m and net profit USD 58.2m in 2025, operating cash flow USD 229m, CapEx USD 116m, vessel sale proceeds USD 66.8m, and a core fleet net book value of USD 1.6bn (market valuation ~USD 1.96bn); operational metrics to support guidance included 2025 average spot rates (Handysize ~$10,570/day, Supramax ~$11,610/day), 2025 average TCEs (Handysize ~$11,490/day, Supramax ~$12,850/day) that outperformed spot by ~$910 and ~$1,220/day, Q1 2026 coverage of 88% Handysize at ~$11,890/day and 100% Supramax at ~$14,450/day, OpEx ~USD 4,780/day, owned‑fleet breakevens ~USD 4,820/day (Handy) and ~USD 5,020/day (Supra), and market expectations of ton‑mile demand growth (~2.1% minor bulk, ~1.9% total dry bulk) vs. net fleet growth (~4%), noting FFAs and spot levels have firmed but geopolitical disruption could tighten or depress volumes.Pacific Basin Shipping Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.08B | 2.58B | 2.30B | 3.28B | 2.97B |
| Gross Profit | 75.95M | 135.24M | 130.95M | 732.08M | 739.34M |
| EBITDA | 260.07M | 357.43M | 348.52M | 866.03M | 850.32M |
| Net Income | 58.26M | 131.70M | 109.38M | 701.86M | 844.81M |
Balance Sheet | |||||
| Total Assets | 2.28B | 2.41B | 2.43B | 2.65B | 2.75B |
| Cash, Cash Equivalents and Short-Term Investments | 270.52M | 282.04M | 261.40M | 443.82M | 459.67M |
| Total Debt | 230.39M | 344.36M | 366.25M | 471.90M | 648.59M |
| Total Liabilities | 453.39M | 587.39M | 634.53M | 741.33M | 914.21M |
| Stockholders Equity | 1.82B | 1.83B | 1.80B | 1.91B | 1.83B |
Cash Flow | |||||
| Free Cash Flow | 148.10M | 180.93M | 101.33M | 850.60M | 625.94M |
| Operating Cash Flow | 264.69M | 309.33M | 353.40M | 935.32M | 850.42M |
| Investing Cash Flow | -54.51M | -87.40M | -61.17M | 63.18M | -334.00M |
| Financing Cash Flow | -230.61M | -214.40M | -389.73M | -949.13M | -433.03M |
Pacific Basin Shipping Technical Analysis
Positive
3.12
Price Trends
3.05
Positive
2.95
Positive
2.68
Positive
Market Momentum
0.11
Negative
60.76
Neutral
64.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2343, the sentiment is Positive. The current price of 3.12 is below the 20-day moving average (MA) of 3.21, above the 50-day MA of 3.05, and above the 200-day MA of 2.68, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 60.76 is Neutral, neither overbought nor oversold. The STOCH value of 64.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2343.
Pacific Basin Shipping Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | HK$94.90B | 4.00 | 48.55% | 9.80% | 11.50% | 17.54% | |
78 Outperform | HK$9.29B | 7.99 | 9.59% | 8.83% | 2.17% | 8.72% | |
65 Neutral | HK$251.57B | 6.21 | 10.75% | 12.48% | -6.12% | -35.50% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | HK$17.01B | 11.88 | 2.51% | 2.88% | -19.46% | -55.11% | |
53 Neutral | HK$371.20M | -3.65 | 5.31% | ― | -0.89% | -50.76% | |
46 Neutral | HK$32.64B | 7.91 | 5.00% | 4.16% | -8.82% | 11.45% |
* Industrials Sector Average
HK:2343
Pacific Basin Shipping
3.36
1.53
83.71%
HK:0517
COSCO SHIPPING International (Hong Kong) Co
6.34
1.87
41.93%
HK:1919
COSCO SHIPPING Holdings Co
15.30
2.17
16.49%
HK:2866
COSCO SHIPPING Development Co
1.05
0.11
11.58%
HK:0137
Jinhui Holdings Co. Ltd.
0.70
0.08
12.90%
HK:1308
SITC International Holdings Co., Ltd.
35.00
12.70
56.93%
Pacific Basin Shipping Corporate Events
Pacific Basin grants 21 million shares in new long-term incentive plan
May 11, 2026
Pacific Basin Shipping has granted 21,017,000 share awards, equal to about 0.41% of its issued share capital, to executives and employees under its 2025 Share Award Scheme, with vesting scheduled for July 2029. The awards will be funded partly fro...
Pacific Basin Shareholders Back All Resolutions at 2026 AGM
Apr 22, 2026
Pacific Basin Shipping reported that all resolutions at its 2026 annual general meeting, held virtually, were approved by shareholders by poll. Investors adopted the 2025 financial statements, endorsed a final dividend for the year, re-elected a s...
Pacific Basin orders two more fuel-efficient Handysize bulkers for US$59.6 million
Apr 16, 2026
Pacific Basin Shipping has agreed to acquire two additional Handysize newbuilding vessels from a shipyard seller for a total of about US$59.6 million, to be funded through cash reserves and/or bank borrowings, with delivery scheduled for the secon...
Pacific Basin lifts first‑quarter TCE earnings on volatile dry bulk market
Apr 16, 2026
Pacific Basin Shipping reported that first-quarter 2026 dry bulk freight rates were stronger year on year, as market disruptions and inefficiencies, including the outbreak of war in the Arabian Gulf, increased tonne‑mile demand, constrained ...
Pacific Basin Reshapes Fleet Orders, Cuts Near-Term Capex and Adds Methanol Vessel Option
Apr 16, 2026
Pacific Basin Shipping has terminated two previously agreed ship purchase contracts for dual-fuel methanol Ultramax newbuildings worth about US$93 million and replaced them with contracts for two conventional Ultramax vessels totaling roughly US$7...
Pacific Basin Switches From Methanol Newbuilds to Cheaper Conventional Ultramax Vessels
Apr 16, 2026
Pacific Basin Shipping has mutually agreed with its original shipbuilders to terminate contracts for two dual-fuel methanol Ultramax vessels worth about US$93 million. The board believes the move will not materially affect the company’s busi...
Pacific Basin Sets 2026 AGM to Approve Dividend, Board Slate and Share Issue Mandate
Mar 19, 2026
Pacific Basin Shipping has called its 2026 annual general meeting for April 22, 2026, to be held as an online virtual meeting, where shareholders will vote on adopting the 2025 audited financial statements and declaring a final dividend. The agend...
Pacific Basin Shipping Launches Up to US$40 Million Share Buyback for 2026
Mar 3, 2026
Pacific Basin Shipping has announced a voluntary share buyback programme running from 4 March 2026 to 31 December 2026, authorising repurchases of up to US$40 million of its shares on the open market under existing and prospective mandates. The bu...
Pacific Basin Delivers Solid 2025 Results, Lifts Capital Returns and Fleet Investments
Mar 3, 2026
Pacific Basin reported 2025 underlying profit of US$59.2 million and net profit of US$58.2 million, with EBITDA of US$263.1 million and sector-leading cost control supporting solid margins despite weaker freight markets. The company remains net de...
Pacific Basin Shipping Declares Final HKD 0.06 Dividend for 2025
Mar 3, 2026
Pacific Basin Shipping Limited has declared a final ordinary cash dividend of HKD 0.06 per share for the financial year ended 31 December 2025, reaffirming its commitment to shareholder returns. The dividend, payable in Hong Kong dollars, is sched...
Pacific Basin Shipping Reshapes Board Committee Roles
Mar 3, 2026
Pacific Basin Shipping has updated the composition and roles of its eleven-member board of directors, refining responsibilities across its key governance committees. The changes include new appointments to the audit, sustainability and remuneratio...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.