JP Morgan released a research report stating it has maintained an 'Overweight' rating on PACIFIC BASIN (02343) and raised its target price from HK$3.8 to HK$4.3.

JP Morgan noted that Pacifi Basin's first-half results significantly exceeded expectations. Net profit surged 3.1 times year-on-year to US$105 million, surpassing market consensus by 67% and the bank's own forecast by 80%.

The group declared an interim dividend of HK$0.155 per share, representing a payout ratio of 97%. Including a US$3.5 million share buyback, total shareholder returns equate to approximately 103% of net profit excluding gains from vessel sales.

JP Morgan believes the better-than-expected interim results were mainly driven by charter rates substantially outperforming freight indices, increased revenue from operating activities, and mark-to-market gains on derivatives. The bank has raised its net profit forecasts for PACIFIC BASIN (02343) for 2026, 2027, and 2028 by 84%, 10%, and 10%, respectively.