COSCO SHIP ENGY (01138) climbed over 5% following its earnings announcement. As of press time, the stock was up 5.02% to HK$7.32 with trading volume reaching HK$67.31 million.

On the news front, COSCO SHIP ENGY released its 2025 interim results on August 29, reporting revenue of approximately RMB 115.73 billion, down about 2.5% year-over-year. Net profit attributable to equity holders reached approximately RMB 18.94 billion, declining about 29.0% compared to the same period last year. Earnings per share stood at 39.71 cents.

In the first half of 2025, the group's foreign trade oil tanker fleet generated foreign trade oil transportation revenue of RMB 72.9 billion, down 5.5% year-over-year, though up 3.3% quarter-over-quarter in Q2. Transportation gross profit reached RMB 13.0 billion, down 48.9% year-over-year but up 42.9% quarter-over-quarter in Q2. The gross margin was 17.9%, down 15.2 percentage points year-over-year but up 5.7 percentage points quarter-over-quarter in Q2.

For the first half of 2025, the group's domestic trade oil tanker fleet achieved domestic oil transportation revenue of RMB 27.4 billion, down 5.5% year-over-year. Transportation gross profit was RMB 6.7 billion, down 6.9% year-over-year, with a gross margin of 24.4%, down 0.4 percentage points year-over-year.

Zheshang Securities noted that the foreign trade oil transportation segment, which represents the core earnings flexibility for COSCO SHIP ENGY, was affected by international market volatility and achieved gross profit of RMB 12.89 billion in the first half, down 49.1% year-over-year. The firm believes this was primarily due to the elevated base from last year's Red Sea crisis that pushed up product tanker rates, as well as increased newly delivered capacity this year. However, as the market recovered, the segment's Q2 gross profit rebounded strongly by 40.3% quarter-over-quarter, demonstrating strong upward flexibility and confirming the recovery of the company's profitability.