COSCO SHIP ENGY (01138) saw its gains exceed 5% during the afternoon session. At the time of writing, the stock was up 3.88%, trading at HKD 18.73, with a turnover of HKD 326 million.

The company recently announced that the exercise conditions for the first exercise period of the initial grant under its 2023 stock option incentive plan have been met. Financial reports indicate that COSCO SHIP ENGY achieved an EOE of 28.6% for 2024, surpassing the assessment requirement by over 6 percentage points. The compound annual growth rate of the company's total profit reached 38.1%, significantly exceeding the assessment baseline of 24.1%. Both metrics were higher than the 75th percentile of comparable enterprises. Furthermore, the company has already completed the EVA target assigned by the State-owned Assets Supervision and Administration Commission.

Guotai Haitong Securities released a research report stating that, in the short term, ongoing trade disruptions continue, with freight rates remaining high despite a slight pullback. Specifically, VLCC TCE rates on the Middle East route are experiencing high volatility, while rates on the US Gulf route remain above $100,000 per day. Rates for smaller vessels are also high, staying above $100,000 per day. Chinese shipowners are actively repositioning vessels to improve load factors. The institution expects significantly higher year-on-year performance for Q1 2026, with Q2 performance also potentially exceeding expectations. Huayuan Securities added that if strait transit resumes subsequently, the tanker market could experience a short-term surge in shipments alongside mid-to-long-term inventory replenishment, potentially leading to a further improvement in fundamentals.