Citi upgraded COSCO Ship Hold to "Buy" in one go, with a target price raised to 15.9 yuan

Citi published a research report stating that although market sentiment towards the container shipping industry remains negative by the end of 2025, mainly due to concentrated demand in the first half of 2025 and the resumption of traffic in the Suez Canal, Citi holds a positive outlook on the risk-return prospects for shipping companies in the Asia-Pacific region.

Citi believes that as inventory replenishment demand and supply management drive the Western economies in the first half of 2026, freight rates are expected to rise. The bank pointed out that Asia-Pacific shipping companies are currently attractively valued, with a forecasted price-to-book ratio for 2026 ranging from only 0.6 to 0.8 times, and the overall net cash level in the industry also provides support. Based on this, Citi upgraded the rating of COSCO Ship Hold (01919.HK) H shares from "Sell" to "Buy," raising the target price from HKD 12.1 to HKD 15.9.

Citi noted that COSCO Ship Hold has a net cash per share of HKD 12, while the impact of weak domestic transportation demand in China and pressure on U.S. port fees has gradually diminished.

The bank maintained its "Buy" rating on Evergreen Marine (2603.TW), with the target price slightly raised from TWD 248 to TWD 251, reaffirming it as a preferred stock. Citi also upgraded Yang Ming (2609.TW) from "Sell" to "Buy," raising the target price from TWD 59 to TWD 68