COSCO SHIP ENGY (01138) surged over 7%. As of press time, the stock was up 7.46% to HK$9.8, with trading volume reaching HK$378 million.

On the news front, on October 9, the US OFAC announced a new batch of sanctions targeting companies related to Iranian oil exports. The sanctions involved Rizhao Shihua Crude Oil Terminal Co., Ltd., affecting three terminals in Rizhao capable of handling large VLCCs. Market concerns over potential port congestion and fleet turnover impacts, combined with China's announcement on October 10 of special port fees for US vessels, led to a significant surge in freight rates on Friday.

On October 10, the Baltic Exchange TD3C-TCE rose 42% day-on-day from $57,000 per day to $80,807 per day. The China-US vessel port fee issue continues to develop, and with this round of freight rate increases combined with strengthening peak season demand, freight rates are expected to show stronger performance.

JPMorgan previously stated that COSCO SHIP ENGY is China's largest tanker operator and one of the world's leading crude oil, refined products, and liquefied natural gas (LNG) transportation companies. As the energy transportation division of China COSCO Group, the company operates a diversified fleet. Its scale, relatively young fleet age structure, and growing LNG business provide downside protection in volatile freight markets while positioning the company to benefit from multi-year upcycles.

The bank forecasts the company's net profit compound annual growth rate of 16% from 2025 to 2027, supported by freight recovery, structural supply-demand catalysts, and prudent fleet expansion.