On June 22, COSCO SHIPPING Energy rose 3.2% in regular trading, trading at HKD 16.38/share, with turnover of HKD 117 million. The stock continues to benefit from sustained high oil tanker rate expectations as geopolitical developments support the bullish thesis.

On the news front, Iranian military sources indicated that the Hormuz Strait remains closed, contradicting earlier market expectations that the waterway would reopen immediately following the US-Iran peace agreement signed on June 19. This means the rerouting premium and war risk premium that have supported elevated tanker rates will persist in the near term.

Goldman Sachs previously noted in a research report that the strait closure has caused approximately 9% to 11% supply tightness in crude and product tanker transportation, and if the closure continues, high freight rate conditions are expected to be sustained. Morgan Stanley also reiterated its Overweight rating on the company with a target price of HKD 27, citing potential normalization of crude procurement and inventory rebuilding as key demand drivers. The company reported Q1 net profit of RMB 2.173 billion, up 206.74% year-over-year, underscoring strong operational fundamentals.

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