Citi has released a research report maintaining its view that inventory restocking in Western economies should continue to drive shipping demand in the second half of this year, aligning with the guidance provided by Germany's Hapag-Lloyd during its second-quarter earnings call. Furthermore, despite new supply growth of approximately 12% annually over the next two years, the container shipping industry should be able to sustain freight rates above the break-even point for after-tax profitability.

Citi projects that COSCO SHIP HOLD (01919) H-shares could achieve a return on equity (ROE) 4 percentage points higher than the other three Asia-Pacific shipping companies it covers during the 2026-28E period. The firm has downgraded its rating on COSCO Shipping Holdings H-shares from "Buy" to "Neutral," while raising the target price from HK$15.9 to HK$17.4.