Zhi Tong Cai Jing·2025-11-05 06:03Core Viewpoint - Daiwa's report indicates that China COSCO Shipping Holdings (601919)(01919) is expected to show stable operational performance in Q3 2025, providing substantial shareholder returns through buybacks and dividends. However, profit pressures are anticipated to increase in 2026, leading to a downgrade in rating from "Outperform" to "Hold" due to a lack of catalysts, weak profit outlook, and limited upside potential for the target price, which remains at HKD 14 [1] Summary by Category - Operational Performance - China COSCO Shipping Holdings demonstrated stable operational performance in Q3 2025 [1] - Earnings Forecast - The earnings per share (EPS) forecast for 2025 has been raised by 18% to reflect better-than-expected Q3 performance [1] - EPS forecasts for 2026 and 2027 have been reduced by 23% to 47% due to adjustments in freight rates and cargo volume predictions [1] - Shareholder Returns - The company is expected to provide substantial shareholder returns through share buybacks and dividends [1] - Rating and Target Price - The rating has been downgraded from "Outperform" to "Hold" due to anticipated profit pressures and limited price upside [1] - The target price remains unchanged at HKD 14 [1]