Shares of SITC (01308) surged 5.14% in pre-market trading on Monday after CICC, a leading investment bank, released a bullish research report on the company. The report highlighted SITC's better-than-expected performance and raised its profit forecasts and target price for the shipping company.

CICC has increased SITC's net profit forecasts for 2025 and 2026 by 38.9% each, to US$1.26 billion and US$1.06 billion respectively. The investment bank maintained its outperform rating on SITC and raised the target price by 15.2% to HK$28 per share, representing a 4.3% upside potential from the current stock price.

The optimistic outlook is based on several factors, including SITC's strong first-half 2025 results, which slightly exceeded expectations. The company reported a 79.7% year-over-year increase in net profit attributable to shareholders, reaching US$630 million. SITC also benefited from better-than-anticipated freight rates and improved gross and net margins. Additionally, CICC noted the continued supply tightness in the sub-3,000 TEU small vessel market where SITC operates, and the positive demand prospects stemming from Southeast Asian economic growth and continued industrial transfer within Asia.