SITC (01308) shares surged 5.14% in pre-market trading on Monday, following a positive research report from CICC that raised the company's target price and profit forecasts. The surge comes on the heels of strong first-half 2025 results and an optimistic outlook for the intra-Asian shipping market.

CICC maintained its outperform rating on SITC and increased its target price by 15.2% to HK$28 per share. The investment firm also raised its net profit forecasts for SITC by 38.9% for both 2025 and 2026, projecting US$1.26 billion and US$1.06 billion respectively. These upgrades were primarily driven by better-than-expected freight rates and strong performance in the first half of 2025.

SITC's 1H25 results exceeded expectations, with revenue rising 28.0% year-over-year to US$1.664 billion and net profit attributable to shareholders surging 79.7% to US$630 million. The company's gross and net margins significantly improved, benefiting from high freight rates and increased shipping volumes. Additionally, SITC's focus on intra-Asian routes positions it well to capitalize on the region's economic growth and continued industrial transfers within Asia. The company also offers an attractive dividend yield, with CICC estimating potential yields of 9.5% and 7.9% for 2025 and 2026, respectively, based on a 70% payout ratio.