Research Report Insights | Changjiang Securities: Reiterates "Buy" Rating for China Merchants Energy Shipping; Oil and Dry Bulk Sectors Show Significant Flexibility

Changjiang Securities Research Report points out that COSCO SHIPPING is a “2+N” shipping platform focused on oil and bulk cargo (over the past 5 years, these two accounted for at least 68% of revenue and 54% of gross profit). It features diversified development in container shipping, ro-ro, and LNG vessels. Geopolitical “unexpected demand” runs throughout the year, with Changjin’s interference and control of the US “long-arm jurisdiction” intensifying global geopolitical fluctuations, potentially accelerating the legalization process of “shadow markets.” Beyond oil tankers, the market is also beginning to focus on dry bulk cargo. In the second half of 2025, dry bulk shipping is expected to improve, with future demand driven by core needs. “A sword forged over ten years,” after more than a decade of deep cultivation and layout, COSCO SHIPPING has built a “2+N” shipping platform, becoming one of the few “shipping ETFs” in the market. The dual core of oil and bulk cargo offers significant flexibility, representing an “offensive” business that may resonate; “bottom-layer” businesses such as ro-ro, container shipping, and LNG, with new ship deliveries, enhance the company’s safety margin. The company is expected to achieve net profits attributable to parent of 6.3 billion yuan, 11.36 billion yuan, and 12.54 billion yuan in 2025-2027, corresponding to P/E ratios of 22.7x, 12.6x, and 11.4x, reaffirming a “Buy” rating.