Goldman Sachs: Slightly lowers COSCO SHIP PORT (01199) target price to 6.6 Hong Kong dollars, expecting improved earnings for the company this year.

Goldman Sachs releases a research report stating that COSCO SHIP PORT(01199) is projected to have a net profit of 312 million US dollars in 2025, a year-on-year increase of 1.1%, which is 8% lower than market expectations; The net profit for the fourth quarter is expected to decline by 45% year-on-year and 42% quarterly to 47.8 million US dollars. The bank believes this is mainly due to one-off costs at the Yangtze River Delta terminal, as well as higher costs confirmed at the Qiankai terminal in the fourth quarter. The target price has been slightly reduced from 6.8 HK dollars to 6.6 HK dollars, with a maintained "buy" rating; The dividend yield for 2026 is estimated to be around 5%, which is attractive. Considering the continuous strong growth in throughput, coupled with average prices rising due to inflation, the bank believes that profit margins and earnings for 2026 are expected to improve; Earnings forecasts for 2026 and 2027 have been revised down by 12% and 11% respectively.