SITC (01308) saw its shares rise by nearly 5% during the morning session. At the time of writing, the stock had increased by 4.66%, trading at HK$33.24 with a turnover of HK$123 million.

Huatai Research released a report stating that, looking ahead to the second quarter of 2026, overall export demand is expected to remain favorable. Combined with potential adjustments to U.S. tariff policies, which could trigger another round of "front-loading exports," this is likely to boost container shipping volumes. On the supply side, the delivery of new vessels in 2026 is relatively limited, contributing to a favorable supply-demand dynamic. The report forecasts that SITC's shipping volumes and freight rates may experience further sequential and year-on-year growth in the second quarter of 2026.

According to estimates, the company's per-container fuel cost in 2025 was US$78 per TEU, accounting for 14% of total costs. Against the backdrop of strong market demand, rising fuel costs are expected to be passed on to customers through fuel surcharges or increased freight rates.

In terms of financial projections, the report maintains its forecasts for SITC's net profit attributable to shareholders at US$1.03 billion, US$1.10 billion, and US$1.08 billion for 2026, 2027, and 2028, respectively, while assuming a dividend payout ratio of 70%. Based on a 14-times projected price-to-earnings ratio for 2026, Huatai Research has set a target price of HK$41.60 for SITC and reaffirmed its "Buy" rating.