Zhi Tong Cai Jing·2025-11-05 09:31Core Viewpoint - Goldman Sachs reports that China COSCO Shipping Holdings (601919) maintains a cautiously optimistic outlook on long-term freight rates due to over 25% of existing cargo ships being over 20 years old and needing to be scrapped between 2028 and 2030, alongside strong cargo volume growth, particularly on Southeast Asia, Europe, and Africa routes [1] Group 1: Financial Performance - The net profit forecast for 2025 to 2027 has been raised by 25% to 46%, reflecting better-than-expected third-quarter earnings and the delayed imposition of port fees between China and the U.S. [1] - The target price for H-shares has been increased from HKD 11.5 to HKD 12.5, while the target price for A-shares has been raised from RMB 14.7 to RMB 16, maintaining a "Neutral" rating [1] Group 2: Market Trends - Management noted a rebound in spot freight rates in October, driven by Black Friday and the anticipated tariffs on Chinese goods, which led to early shipments [1] - The strong performance in third-quarter earnings is attributed to excellent freight rates, particularly due to the high proportion of intra-Asia routes and better cost control compared to peers [1]