BofAS Maintains Underperform Rating on COSCO SHIP HOLD/OOIL as Container Shipping Sector Still Faces Challenges
Industry Outlook: The container shipping industry is expected to face challenges, with BofA Securities predicting an EBIT loss in 2026 due to oversupply and the reopening of the Red Sea route.
Vessel Supply Impact: Significant growth in vessel supply in the first half of 2026 will contribute to the industry's struggles, compounded by the reopening of the Red Sea route in the second half of the year.
Investment Recommendations: BofA Securities has maintained an Underperform rating on COSCO SHIP HOLD and OOIL, advising investors to be cautious of negative developments related to the Red Sea route.
Market Conditions: The report highlights the potential for declining spot freight rates as port congestion eases and seasonal factors weaken, which could further impact the shipping market.
Trade with 70% Backtested Accuracy
Analyst Views on 00316
About the author
HSI Drops 251 Points; Banking Sector Faces Pressure; MTR Corporation and OOIL Decline After Earnings Reports
Market Performance: The HSI closed down 251 points (1%) at 25,465, with significant declines in major stocks like HSBC and Standard Chartered, both dropping over 5%.
Inflation and Economic Indicators: China's inflation rate for February rose to 1.0%, while the M2 money supply remained unchanged at 9% year-on-year.
Commodity and Airline Stocks: CNOOC saw a 2.3% increase amid rising oil prices, while airline stocks like China Southern Airlines and Air China fell over 4%.
Tech Stock Movements: Major tech companies like Tencent and Alibaba experienced slight gains, while others like Meituan and Kuaishou saw declines of around 1-1.7%.
<Daily Summary> HSI Ends at 25,465, Decreasing by 251 Points; HSTI Finishes at 4,978, Down 49 Points; OOIL Falls Over 7%; CNOOC, CATL, CHINA RISUN GP, 160 HEALTH, and QINGSONG HEALTH Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 251 points (1.0%) to close at 25,465, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines.
Active Heavyweights: Notable stocks included Alibaba (BABA) and Tencent (TENCENT), which saw slight increases, while others like OOIL and MTR Corporation faced significant drops.
Short Selling Trends: Several companies experienced high short selling ratios, with MTR Corporation and BYD Electronic among those with the highest ratios, indicating bearish market sentiment.
Noteworthy Movers: Bright Smart saw a substantial increase of 33.96%, while companies like Deepexi Tech and Xunce faced significant declines, highlighting volatility in the market.
Midday Update: HSI Ends at 25,593, Down 123 Points; HSTI at 5,007, Down 20 Points; MTR Corporation Falls Over 6%; CATL, CNOOC, CHINA RISUN GP, 160 HEALTH, and SWIRE PACIFIC Reach New Highs
Market Performance: The Hang Seng Index (HSI) fell by 123 points (0.5%) to 25,593, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines.
Active Heavyweights: Notable stocks like Alibaba and Tencent saw slight increases, with Alibaba closing at $133.6 (up 1.5%) and Tencent at $552.5 (up 1.1%), while other heavyweights like HSBC and MTR Corporation faced significant declines.
Top Gainers and Losers: Bright Smart surged by 37.6% to $9.52, while DeepExi Tech dropped by 24.4% to $52.8, highlighting the volatility in smaller stocks.
Short Selling Trends: High short selling ratios were observed across various stocks, with MTR Corporation and Xinyi Glass showing particularly high ratios, indicating bearish sentiment among investors.
HSI Declines by 133 Points; OOIL Drops 3% After Earnings Report; Oil and Coal Prices Rise
Market Opening: The Hong Kong bourse opened lower, with the HSI down 0.5% at 25,583, influenced by Iran's continued shutdown of the Strait of Hormuz.
Tech Sector Performance: Major tech stocks like TENCENT and BABA-W opened flat or slightly lower, while NTES-S saw a 1.9% increase.
Commodity Prices: Brent oil futures rose above USD100, with PETROCHINA and CNOOC opening higher, while gold prices dropped by 1% due to weakened expectations for interest rate cuts.
Company Earnings: OOIL reported a significant drop in net profit by 41%, leading to a 3.4% decline in its stock price, while POP MART's collaboration with Sanrio sold out quickly, impacting its stock negatively.
OOIL Shares Drop Over 7% Following 41% Decline in Last Year's Net Profit
Stock Performance: OOIL (00316.HK) opened 3.44% lower, reaching a low of HKD141.8, and last traded at HKD142.8, down 7.39% with a trading volume of 138,500 shares.
Financial Results: In 2025, OOIL reported a 9.2% year-over-year revenue decline to USD9.722 billion and a 41.3% drop in net profit to USD1.513 billion.
Dividend Announcement: The company declared a final dividend of USD0.42, significantly lower than the USD1.32 distributed in the same period the previous year.
Short Selling Activity: The short selling for OOIL amounted to $49.60 million, with a short selling ratio of 31.769%.
HSI Rises 21 Points at Midday, Driven by Automotive and New Energy Stocks; GEELY AUTO and CATL Surge Over 8%
Market Performance: The HSI rose by 21 points (0.1%) to 25,981, with a total half-day turnover of $147.491 billion, while the HSCEI and HSTECH also saw slight increases.
Automaker Highlights: NIO-SW reported its first quarterly profit, leading to a 16.1% increase in its share price, while other automakers like LEAPMOTOR and XPENG-W also experienced notable gains.
Sector Movements: Intelligent driving and battery stocks saw significant increases, with WERIDE-W and CATL rising by 7.9% and 6.9%, respectively, reflecting strong investor interest in these sectors.
Economic Indicators: China's inflation rate for February was reported at 1.0%, up from 0.2%, while the PPI YoY was -0.9%, slightly better than the previous -1.4%.
HSI Drops 251 Points; Banking Sector Faces Pressure; MTR Corporation and OOIL Decline After Earnings Reports
Market Performance: The HSI closed down 251 points (1%) at 25,465, with significant declines in major stocks like HSBC and Standard Chartered, both dropping over 5%.
Inflation and Economic Indicators: China's inflation rate for February rose to 1.0%, while the M2 money supply remained unchanged at 9% year-on-year.
Commodity and Airline Stocks: CNOOC saw a 2.3% increase amid rising oil prices, while airline stocks like China Southern Airlines and Air China fell over 4%.
Tech Stock Movements: Major tech companies like Tencent and Alibaba experienced slight gains, while others like Meituan and Kuaishou saw declines of around 1-1.7%.
<Daily Summary> HSI Ends at 25,465, Decreasing by 251 Points; HSTI Finishes at 4,978, Down 49 Points; OOIL Falls Over 7%; CNOOC, CATL, CHINA RISUN GP, 160 HEALTH, and QINGSONG HEALTH Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 251 points (1.0%) to close at 25,465, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines.
Active Heavyweights: Notable stocks included Alibaba (BABA) and Tencent (TENCENT), which saw slight increases, while others like OOIL and MTR Corporation faced significant drops.
Short Selling Trends: Several companies experienced high short selling ratios, with MTR Corporation and BYD Electronic among those with the highest ratios, indicating bearish market sentiment.
Noteworthy Movers: Bright Smart saw a substantial increase of 33.96%, while companies like Deepexi Tech and Xunce faced significant declines, highlighting volatility in the market.
Midday Update: HSI Ends at 25,593, Down 123 Points; HSTI at 5,007, Down 20 Points; MTR Corporation Falls Over 6%; CATL, CNOOC, CHINA RISUN GP, 160 HEALTH, and SWIRE PACIFIC Reach New Highs
Market Performance: The Hang Seng Index (HSI) fell by 123 points (0.5%) to 25,593, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines.
Active Heavyweights: Notable stocks like Alibaba and Tencent saw slight increases, with Alibaba closing at $133.6 (up 1.5%) and Tencent at $552.5 (up 1.1%), while other heavyweights like HSBC and MTR Corporation faced significant declines.
Top Gainers and Losers: Bright Smart surged by 37.6% to $9.52, while DeepExi Tech dropped by 24.4% to $52.8, highlighting the volatility in smaller stocks.
Short Selling Trends: High short selling ratios were observed across various stocks, with MTR Corporation and Xinyi Glass showing particularly high ratios, indicating bearish sentiment among investors.
HSI Declines by 133 Points; OOIL Drops 3% After Earnings Report; Oil and Coal Prices Rise
Market Opening: The Hong Kong bourse opened lower, with the HSI down 0.5% at 25,583, influenced by Iran's continued shutdown of the Strait of Hormuz.
Tech Sector Performance: Major tech stocks like TENCENT and BABA-W opened flat or slightly lower, while NTES-S saw a 1.9% increase.
Commodity Prices: Brent oil futures rose above USD100, with PETROCHINA and CNOOC opening higher, while gold prices dropped by 1% due to weakened expectations for interest rate cuts.
Company Earnings: OOIL reported a significant drop in net profit by 41%, leading to a 3.4% decline in its stock price, while POP MART's collaboration with Sanrio sold out quickly, impacting its stock negatively.
OOIL Shares Drop Over 7% Following 41% Decline in Last Year's Net Profit
Stock Performance: OOIL (00316.HK) opened 3.44% lower, reaching a low of HKD141.8, and last traded at HKD142.8, down 7.39% with a trading volume of 138,500 shares.
Financial Results: In 2025, OOIL reported a 9.2% year-over-year revenue decline to USD9.722 billion and a 41.3% drop in net profit to USD1.513 billion.
Dividend Announcement: The company declared a final dividend of USD0.42, significantly lower than the USD1.32 distributed in the same period the previous year.
Short Selling Activity: The short selling for OOIL amounted to $49.60 million, with a short selling ratio of 31.769%.
HSI Rises 21 Points at Midday, Driven by Automotive and New Energy Stocks; GEELY AUTO and CATL Surge Over 8%
Market Performance: The HSI rose by 21 points (0.1%) to 25,981, with a total half-day turnover of $147.491 billion, while the HSCEI and HSTECH also saw slight increases.
Automaker Highlights: NIO-SW reported its first quarterly profit, leading to a 16.1% increase in its share price, while other automakers like LEAPMOTOR and XPENG-W also experienced notable gains.
Sector Movements: Intelligent driving and battery stocks saw significant increases, with WERIDE-W and CATL rising by 7.9% and 6.9%, respectively, reflecting strong investor interest in these sectors.
Economic Indicators: China's inflation rate for February was reported at 1.0%, up from 0.2%, while the PPI YoY was -0.9%, slightly better than the previous -1.4%.
