COSCO SHIP ENGY (01138) saw its share price increase by 8.24% in the afternoon session, currently trading at HK$15.37, with a turnover of HK$477 million.

CITIC Securities indicated that, against a backdrop of structural demand growth for compliance by 2026 and low oil prices, crude oil inventory replenishment is likely to be the primary marginal variable; the firm projects the annualized VLCC freight rate benchmark to settle between $60,000 and $75,000 per day. As the cyclical upturn materializes, the release of VLCC freight rate elasticity is expected to drive rapid profit growth for the fleet next year. In the short term, with the seasonal low for transportation approaching, it is advisable to seek strategic entry points.

Guotai Haitong believes the upturn in the tanker shipping market has persisted for four years and anticipates that COSCO SHIP ENGY will achieve a new profit peak in 2025, with a significant year-on-year surge in performance expected for the first quarter of 2026. The institution forecasts that the tanker shipping boom will continue to outperform expectations in the coming years, with international oil shipping profits demonstrating considerable resilience.