DBS has released a research report indicating an upward revision to its earnings projections for COSCO SHIP HOLD (01919). The firm has lifted its 2026 revenue and profit forecasts by 5% and 38%, respectively, citing stronger-than-expected first-half results and higher freight rate assumptions.

Consequently, the target price has been increased from HK$14.2 to HK$18.4, based on a 1.0 times forecast price-to-book ratio for 2027. The bank maintains its "Hold" rating on the stock.

The company's projected dividend yield of approximately 6% for 2026 is seen as providing a cushion for the share price on the downside. In the first half, COSCO SHIP HOLD reported a net profit attributable to shareholders of RMB 13.4 billion, a year-on-year decrease of 24%, but this performance surpassed DBS's expectations, largely thanks to a stronger-than-anticipated rebound in freight rates during the second quarter.

Looking ahead, management anticipates that freight rates will remain elevated in the third quarter before gradually easing in the fourth quarter as cargo growth moderates.