Group 1 - Zhongyuan Shipping (01138) opened over 3% higher, currently up 3.09% at HKD 9.34, with a trading volume of HKD 4.0722 million [1] - On September 22, Zhongyuan Shipping indicated a significant increase in tanker freight rates, positively impacting the fleet earnings of global tanker owners [1] - The company's VLCC fleet is mostly in spot operation, benefiting from the current market conditions [1] Group 2 - JPMorgan considers Zhongyuan Shipping as China's largest tanker operator and a global leader in crude oil, refined oil, and LNG transportation [1] - The company operates a diversified fleet under China COSCO Group, providing downside protection in a volatile freight market due to its scale, newer vessel age structure, and increasing LNG business [1] - Huayuan Securities reported that VLCC TD3C TCE reached USD 96,000 per day on September 16, 2025, maintaining high levels thereafter, marking the best September VLCC freight rates since 1990 [1] Group 3 - The upcoming week is the last full working week before China's National Day holiday, with a concentration of Middle East cargoes expected for October shipments [1] - The available VLCC capacity in the next 30 days is projected to reach the lowest level in the past year, suggesting potential further increases in VLCC freight rates, possibly surpassing the September high since 1990 [1]

Group 1 - The stock of COSCO Shipping Energy Transportation Co., Ltd. (中远海能) opened over 3% higher, currently up 3.09% at HKD 9.34, with a trading volume of HKD 4.0722 million [1] - On September 22, during the 2025 semi-annual performance briefing, COSCO Shipping Energy announced a significant increase in tanker freight rates, positively impacting the fleet earnings of global tanker owners [1] - Morgan Stanley highlighted that COSCO Shipping Energy is the largest tanker operator in China and a leading global transporter of crude oil, refined oil, and liquefied natural gas (LNG), benefiting from a diversified fleet and a relatively new fleet age structure [1] Group 2 - The VLCC TD3C TCE reached USD 96,000 per day on September 16, 2025, maintaining a high level in the following days, marking the best September VLCC freight rate since 1990 [1] - The upcoming week is the last full working week before China's National Day holiday, with a concentration of Middle Eastern cargoes expected for October, potentially leading to further increases in VLCC freight rates [1] - The available VLCC capacity in the next 30 days is projected to reach the lowest level in the past year, suggesting that VLCC freight rates may rise further, potentially surpassing the September freight rate peak since 1990 [1]

Core Viewpoint - Morgan Stanley initiates coverage on China Merchants Energy Shipping Company (01138) with an "Overweight" rating and a target price of HKD 12, while giving a "Neutral" rating for its A-share (600026.SH) with a target price of RMB 13 [1] Group 1: Company Overview - China Merchants Energy is the largest oil tanker operator in China and a leading global player in crude oil, refined oil, and LNG transportation [1] - The company operates a diversified fleet under China Merchants Group's energy transportation division, providing it with a competitive edge in a volatile freight market [1] Group 2: Financial Projections - The company is expected to achieve a compound annual growth rate (CAGR) of 16% in net profit from 2025 to 2027, driven by freight recovery, structural supply-demand catalysts, and cautious fleet expansion [1] - Revenue CAGR is projected at approximately 8% from 2025 to 2027, supporting an improvement in profit margins, with net profit margin increasing from 19% in 2025 to 21% in 2027 [2] Group 3: Fleet and Debt Management - The fleet is anticipated to grow from 246 vessels in 2024 to 290 vessels by 2027, positioning the company to capitalize on the next upward cycle [2] - Net debt ratio is expected to rise from about 52% in 2025 to approximately 67% in 2027, but strong operating cash flow and asset backing will keep leverage manageable [2] - LNG revenue is projected to increase its share to around 13% by 2027, enhancing revenue visibility [2]

Core Viewpoint - Morgan Stanley initiates coverage on China Merchants Energy Shipping Company (600026) with an "Overweight" rating for Hong Kong stocks and a target price of HKD 12, while assigning a "Neutral" rating for A-shares with a target price of RMB 13 [1] Company Overview - China Merchants Energy Shipping is the largest oil tanker operator in China and a leading global player in crude oil, refined oil, and LNG transportation [1] - The company operates a diversified fleet under China Merchants Group's energy transportation division, providing it with a competitive edge in a volatile freight market [1] Financial Projections - The company is expected to achieve a compound annual growth rate (CAGR) of 16% in net profit from 2025 to 2027, driven by freight recovery, structural supply-demand catalysts, and cautious fleet expansion [1] - Revenue CAGR is projected at approximately 8% from 2025 to 2027, supporting an improvement in profit margins, with net profit margin increasing from 19% in 2025 to 21% in 2027 [1] Fleet Expansion - The fleet is anticipated to grow from 246 vessels in 2024 to 290 vessels by 2027, positioning the company to capitalize on the next upward cycle in the market [1] Debt and Cash Flow - The net debt ratio is expected to rise from about 52% in 2025 to approximately 67% in 2027; however, strong operating cash flow and asset backing will keep leverage manageable [1] - LNG revenue is projected to increase its share to around 13% by 2027, enhancing revenue visibility [1]

Core Viewpoint - Morgan Stanley initiates coverage on COSCO Shipping Energy, assigning an "Overweight" rating for H-shares with a target price of HKD 12 and a "Neutral" rating for A-shares with a target price of CNY 13 [1] Group 1: Company Overview - COSCO Shipping Energy is the largest oil tanker operator in China and one of the leading companies globally in crude oil, refined oil, and liquefied natural gas (LNG) transportation [1] - The company operates a diversified fleet under the energy transportation segment of China COSCO Shipping Group [1] Group 2: Market Position and Growth Potential - The scale, relatively new fleet age structure, and increasing LNG business provide the company with downside protection in a volatile freight market [1] - The company is well-positioned to benefit from a prolonged upcycle over the years [1] Group 3: Financial Projections - Morgan Stanley forecasts a compound annual growth rate (CAGR) of 16% for the company's net profit from 2025 to 2027, supported by freight recovery, structural supply-demand catalysts, and cautious fleet expansion [1]

Core Viewpoint - The stock of China Merchants Nanjing Tanker Corporation (招商南油) has experienced fluctuations, with a recent decline of 2.11% on September 18, 2023, amid significant trading activity and net outflows of capital [1][2]. Group 1: Stock Performance - As of September 18, 2023, the stock price is reported at 3.25 CNY per share, with a total market capitalization of 15.606 billion CNY [1]. - Year-to-date, the stock has increased by 3.83%, while it has decreased by 2.11% over the last five trading days, increased by 11.68% over the last 20 days, and increased by 9.80% over the last 60 days [1]. - The stock has appeared on the "龙虎榜" (top trading list) three times this year, with the latest occurrence on September 8, 2023, where it recorded a net buy of 102 million CNY [1]. Group 2: Company Overview - China Merchants Nanjing Tanker Corporation, established on September 8, 1993, and listed on January 8, 2019, is primarily engaged in coastal and international oil transportation [2]. - The revenue composition of the company includes: refined oil transportation (57.92%), crude oil transportation (28.82%), chemical transportation (7.20%), ethylene transportation (3.07%), crew leasing (2.28%), and other services (0.67%) [2]. - As of August 31, 2023, the number of shareholders is reported at 141,600, a decrease of 4.11% from the previous period, with an average of 33,902 circulating shares per shareholder, an increase of 4.28% [2]. Group 3: Financial Performance - For the first half of 2025, the company reported a revenue of 2.772 billion CNY, a year-on-year decrease of 21.43%, and a net profit attributable to shareholders of 570 million CNY, down 53.28% year-on-year [2]. - As of June 30, 2025, the largest circulating shareholder is Hong Kong Central Clearing Limited, holding 64.1352 million shares, a decrease of 7.0947 million shares from the previous period [2].

Core Viewpoint - The stock of China Merchants Nanjing Tanker Corporation (招商南油) has experienced fluctuations, with a recent decline of 2.10% on September 16, 2023, reflecting a total market capitalization of 15.654 billion yuan [1]. Financial Performance - For the first half of 2025, the company reported a revenue of 2.772 billion yuan, representing a year-on-year decrease of 21.43%, while the net profit attributable to shareholders was 570 million yuan, down 53.28% compared to the previous year [2]. - Year-to-date, the stock price has increased by 4.15%, with a 0.91% decline over the last five trading days, a 13.59% increase over the last 20 days, and a 6.89% increase over the last 60 days [1]. Business Overview - The company, established on September 8, 1993, and listed on January 8, 2019, primarily engages in coastal and international oil transportation, with revenue breakdowns as follows: refined oil transportation (57.92%), crude oil transportation (28.82%), chemical transportation (7.20%), ethylene transportation (3.07%), crew leasing (2.28%), and other services (0.67%) [2]. - As of August 31, 2023, the number of shareholders was 141,600, a decrease of 4.11% from the previous period, with an average of 33,902 circulating shares per shareholder, an increase of 4.28% [2]. Market Activity - The stock has appeared on the "龙虎榜" (a list of stocks with significant trading activity) three times this year, with the most recent appearance on September 8, 2023, where it recorded a net purchase of 102 million yuan [1]. - The major shareholders include Hong Kong Central Clearing Limited, holding 64.1352 million shares, a decrease of 7.0947 million shares from the previous period, and Southern CSI 1000 ETF, holding 35.8807 million shares, an increase of 6.8034 million shares [2].

Core Viewpoint - The companies are focusing on their respective market segments and do not plan to integrate their operations despite investor inquiries about potential consolidation [1] Group 1: Company Performance - In the first half of 2025, China Merchants Energy Shipping achieved a revenue of 2.772 billion yuan, a year-on-year decrease of 21.43%, and a net profit attributable to shareholders of 570 million yuan, down 53.28% [1] - The decline in performance is attributed to a significant drop in international refined oil freight rates and a decrease in asset disposal income [1][2] Group 2: Strategic Initiatives - China Merchants Energy Shipping plans to focus on building a global fleet primarily consisting of MR (Medium Range) vessels, with LR (Long Range) vessels as a supplement, to enhance its operational capabilities [2] - The company aims to consolidate its presence in the Far East and upgrade its fleet while establishing a global operational base to withstand cyclical fluctuations [2] Group 3: Shareholder Returns - The company announced a share repurchase plan, intending to buy back shares worth no less than 250 million yuan and no more than 400 million yuan, to reduce registered capital [2] - Due to historical losses and a negative retained earnings situation, the company is currently unable to distribute cash dividends, leading to the decision to repurchase shares instead [2] - Since 2020, the company has executed share buybacks three times, totaling 222 million shares and utilizing 550 million yuan in repurchase funds [2]

Core Viewpoint - The stock of China Cosco Shipping Energy Transportation Co., Ltd. has experienced a decline of 8.52% year-to-date, with a recent drop of 2.07% on September 3, 2023, indicating potential challenges in the market [1]. Company Overview - China Cosco Shipping Energy Transportation Co., Ltd. was established on July 26, 1996, and listed on May 23, 2002. The company is headquartered in Hongkou District, Shanghai, and primarily engages in the transportation of crude oil and refined oil, as well as liquefied natural gas (LNG) [1]. - The company's revenue composition includes: 41.53% from foreign trade crude oil, 14.59% from domestic crude oil, 10.78% from foreign trade refined oil, 10.38% from foreign trade oil vessel leasing, 10.28% from domestic refined oil, 9.59% from LNG transportation, 1.35% from chemical transportation, 0.89% from LPG transportation, 0.55% from domestic oil vessel leasing, and 0.05% from other sources [1]. Financial Performance - For the first half of 2025, the company reported a revenue of 11.642 billion yuan, a slight decrease of 0.08% year-on-year, and a net profit attributable to shareholders of 1.869 billion yuan, down 28.28% year-on-year [2]. - Since its A-share listing, the company has distributed a total of 14.462 billion yuan in dividends, with 4.437 billion yuan distributed over the past three years [3]. Shareholder Information - As of June 30, 2025, the number of shareholders for China Cosco Shipping Energy has increased to 116,500, reflecting a rise of 7.95% from the previous period [2]. - The top ten circulating shareholders include Hong Kong Central Clearing Limited, which holds 91.6484 million shares, an increase of 18.3201 million shares from the previous period [3].

Core Viewpoint - The company reported a slight increase in revenue but a significant decline in net profit for the first half of 2025, primarily due to challenges in the chemical transportation market and increased operational costs [1][4]. Group 1: Financial Performance - In 1H2025, the company achieved operating revenue of 713 million yuan, a year-on-year increase of 0.7%, but the net profit attributable to shareholders fell to 54 million yuan, down 44.2% [1]. - In Q2 2025, the company recorded operating revenue of 341 million yuan, a year-on-year growth of 3.1%, while net profit dropped 67.3% to 16 million yuan [1]. Group 2: Business Analysis - The growth in revenue is attributed to the acquisition of Shenghang Haoyuan, which expanded the company's refined oil business [2]. - Chemical transportation revenue decreased by 20.5%, with its revenue share declining by 19.7 percentage points to 74.2%, due to a downturn in macroeconomic conditions and freight rates [2]. - The refined oil business saw a remarkable revenue increase of 353.4%, raising its share by 19.6 percentage points to 25.13%, driven by enhanced capacity and customer resources post-acquisition [2]. - Domestic refined oil transportation volume surged by 486.2%, although freight rates faced downward pressure due to increased tanker capacity and slow growth in global chemical trade [2]. Group 3: Cost and Margin Analysis - The gross margin for 1H2025 was 23.5%, a decrease of 7.3 percentage points, primarily due to falling industry freight rates and increased operational costs from a larger fleet [3]. - The expense ratio for 1H2025 was 14.3%, a slight decrease of 0.44 percentage points, with management expenses down by 0.59 percentage points due to reduced downtime losses [3]. - The net profit margin for 1H2025 was 7.6%, down 6.1 percentage points year-on-year [3]. Group 4: Capacity Expansion - The company is expanding its capacity in the chemical and refined oil sectors through new vessel applications, acquisition of existing vessels, and equity purchases [3]. - New vessels, including a 6200 DWT oil-chemical dual-purpose ship and a 13500 DWT stainless steel chemical/refined oil ship, are expected to be operational in the second half of 2025 [3]. - The acquisition of Shenghang Haoyuan includes three vessels currently under construction, enhancing the company's operational capabilities [3]. Group 5: Profit Forecast and Valuation - Due to the challenging hazardous chemical transportation market, the company has revised its net profit forecasts for 2025-2027 to 140 million yuan, 170 million yuan, and 180 million yuan, respectively [4]. - The company maintains a "buy" rating despite the downward revision in profit expectations [4].