Yamato: Upgrade Pacific International Shipping (02343.HK) to a "buy" rating, expecting improved geopolitical environment to benefit freight.

The Economic and Financial Intelligence APP learned that Daiwa released a research report stating that the time charter equivalent (TCE) of Pacific Basin (02343.HK) dry bulk carriers in April for handysize and supramax vessels was lower by about 15% and 10% compared to last year. The bank believes that the sluggish demand since the beginning of the year will continue into the second half of the year, but the risk of further deterioration is limited. Despite the expected decrease in TCE, the bank believes that handysize and supramax dry bulk carriers will continue to be profitable this year. Based on the current attractive valuations, improvements in the geopolitical environment boosting investor confidence, and Pacific Basin's active share buybacks, the bank has upgraded its rating from "outperform" to "buy" with a target price decreased from 2.4 Hong Kong dollars to 2.25 Hong Kong dollars.