BofA Securities maintained an Underperform rating for COSCO SHIP HOLD due to the company's 2H25 results slightly missing forecasts, weaker freight rates and terminal profits in 4Q25, and ongoing uncertainties related to the Strait of Hormuz. Despite these challenges, the company has kept its shareholder return strategy unchanged and declared a final dividend with a 50% payout ratio. The current valuation is around 0.9 times the P/B ratio, which is nearing the peak observed during the Red Sea incident. BofA Securities set a target price of HKD13.5, reflecting a negative outlook despite short-term supply tightness in the container shipping sector.
