The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that Dongfang Overseas International (00316)'s third-quarter operation update is positive. Port congestion has met health needs, and the industry's upward guidelines have also spurred industry discussions. The bank maintains an “overholding” rating on the stock, with a target price of HK$176.

The bank pointed out that the average revenue per TEU in the third quarter increased by 33.1% year on year, up 30% from quarter to 1,547 US dollars, and shipment volume rose 9% year on year to 2.12 million TEU, which was roughly flat from quarter to quarter. Total liner revenue reached US$3.285 billion, up 45.1% year on year and 29.5% quarterly. The loadable capacity only increased by 3.6% over the same period last year, and the loading rate improved by 4.2 percentage points, reflecting tight effective capacity and prudent capacity deployment. Revenue from trans-Pacific routes surged 71.8% year on year, and now accounts for about 44% of liner revenue.

The bank believes that continued port congestion can offset the impact of upcoming delivery of new ships, help maintain pricing capacity; and maintain a positive view of shipping ecology.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.