China Merchants Port's Pricing Power Likely Strengthened by Tight Capacity
Dow Jones
4 hours ago
0302 GMT - China Merchants Port's pricing power could be strengthened by tight capacity at key terminals, say DBS Group Research analysts in a note. The Chinese port operator's terminals in China are close to being fully used. Tight capacity at Chinese ports could support favorable tariff negotiations from 2027, the analysts say, citing management. The analysts expect a 2.0%-3.0% average tariff increase at the Chinese terminals from next year, compared with recent 1.0%-2.0% increases. They raise their 2027 revenue and net profit projections by 1.0%-2.0%. Meanwhile, China Merchants' moves to optimize its portfolio could be a rerating opportunity for the stock. DBS maintains its buy rating and 20.00 Hong Kong dollar target price. Shares rise 0.8% to HK$16.39.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.