Core Viewpoint - Pacific Shipping (02343) shows a near 3% increase in stock price, with a current price of HKD 2.54 and a trading volume of HKD 25.52 million, following the release of its Q3 2025 operational data [1] Group 1: Operational Performance - The company's small handy-sized bulk carrier time charter equivalent (TCE) daily net rental decreased by 15% year-on-year to USD 11,680, while the ultra-handy-sized bulk carrier TCE increased by 10% year-on-year to USD 13,410 [1] - For Q4 2025, the company expects the daily net rental for small handy-sized bulk carriers and ultra-handy-sized vessels to improve to USD 12,380 and USD 14,060 respectively, with 72% and 87% of operational days already locked in [1] Group 2: Market Outlook - Daiwa Securities views the increase in port fees in China as a positive factor driving up bulk freight rates and acknowledges the company's proactive approach in dealing with uncertain operational environments [1] - Bank of America Securities notes that the Q3 performance of Pacific Shipping was generally in line with expectations, with slightly weak freight rates, but an improvement in locked freight rates for Q4 [1] - The company is expected to be exempt from paying port fees in the US and China, although regulatory uncertainties remain until further discussions with regulatory bodies are concluded [1] - Bank of America has raised the earnings per share forecast for Pacific Shipping for 2025 to 2027 by an average of 7% to reflect strong performance in the spot market for Q4 [1]

Group 1: Company Performance and Forecast - Daiwa has raised the earnings per share forecast for Pacific Basin Shipping (02343) by 5% to 13% for the next two years, maintaining a "Buy" rating due to low valuation and ongoing share buybacks [1] - The 12-month target price has been increased to HKD 3 from HKD 2.65, based on a price-to-book ratio of 1 times (previously 0.9 times) [1] - In Q3 2025, the average net charter rate for Handysize vessels decreased by 15% year-on-year to USD 11,680 per day, while Supramax vessels saw a 10% increase to USD 13,410 per day [1] Group 2: Market Trends and External Factors - Daiwa views the increase in port fees for US-related vessels announced by China on October 10 as a significant potential impact on the dry bulk market, given that China accounts for 40% of global dry bulk imports in 2024 [2] - The increase in port fees is seen as a positive factor for driving up dry bulk freight rates, and the company acknowledges the proactive measures taken by Pacific Basin Shipping in response to the uncertain operating environment [2]

Group 1 - Daiwa has raised Pacific Basin Shipping's (02343) earnings per share forecast for the next two years by 5% to 13%, reiterating a "Buy" rating due to low valuation and ongoing share buybacks [1] - The 12-month target price has been increased to HKD 3 from HKD 2.65, based on a price-to-book ratio of 1 times (previously 0.9 times) [1] - The company reported a 15% year-on-year decline in average net charter rates for Handysize vessels to USD 11,680 per day, while Supramax rates increased by 10% to USD 13,410 per day [1] Group 2 - Daiwa noted that China's announcement on October 10 to increase port fees for U.S. vessels could significantly impact the dry bulk market, as China accounts for 40% of global dry bulk imports in 2024 [2] - The increase in port fees is viewed as a positive factor for driving up dry bulk freight rates, and the company acknowledges the proactive measures taken to address the uncertain operating environment [2]

Core Viewpoint - Pacific Shipping reported its operational data for Q3 2025, highlighting a 15% year-on-year decline in daily net charter rates for small handy bulk carriers to $11,680, while ultra handy vessels saw a 10% increase to $13,410 [1] Group 1: Operational Performance - The daily net charter rate (TCE) for small handy bulk carriers decreased by 15% year-on-year to $11,680 [1] - The daily net charter rate for ultra handy vessels increased by 10% year-on-year to $13,410 [1] - For Q4 2025, the company expects the daily net charter rates to rise to $12,380 and $14,060 for small handy and ultra handy vessels respectively, with 72% and 87% of operational days already locked in [1] Group 2: Market Outlook - Increased port fees in China are viewed as a positive factor driving up bulk shipping rates [1] - The company is recognized for its proactive approach in addressing uncertainties in the operational environment [1] Group 3: Financial Projections - The earnings per share forecast for the company has been raised by 5% to 13% for the next two years [1] - The target price has been adjusted from HKD 2.65 to HKD 3 based on a revised price-to-book ratio of 1 times, up from the previous 0.9 times [1] - The "Buy" rating is reaffirmed due to low valuation and ongoing share buybacks [1]