Shares of Cosco Shipping Energy Transportation (01138) rose more than 5% during the trading session. At the time of writing, the stock was up 3.86%, trading at HKD 20.46, with a turnover of HKD 397.5 million.

Goldman Sachs released a research report expressing optimism about the current supercycle for Very Large Crude Carriers (VLCCs). The report projects potential upside of 36% for the company's A-shares (600026.SH) and 51% for its H-shares (01138) from current levels. This outlook is based on factors including tight vessel supply, global oil inventory restocking, trade route diversions, and significantly enhanced pricing power due to increased market concentration in the VLCC sector.

The investment bank raised its full-year 2026 average VLCC time charter equivalent (TCE) rate forecast from USD 80,000 per day to USD 150,000 per day. Consequently, Goldman Sachs increased its profit forecasts for Cosco Shipping Energy Transportation for 2026 and 2027 by 81% and 59%, respectively, to RMB 13.0 billion and RMB 11.0 billion. This implies return on equity figures of 23% and 19% for those years.

The target price for the company's H-shares was raised substantially by 81% to HKD 29, while the target for its A-shares was increased by 78% to RMB 32. A "Buy" rating was affirmed.