Huachuang Securities Maintains 'Buy' Rating on Pacific Basin at HK$5.05 Target

Deep News
Aug 12

Huachuang Securities has released a report stating that PACIFIC BASIN is a stable and well-managed owner of small bulk carriers, capable of navigating market cycles and poised to benefit from an upturn in dry bulk shipping sentiment.

Given the dry bulk sector's stronger-than-expected performance, the firm has raised its net profit attributable to shareholders forecasts for PACIFIC BASIN for 2026 and 2027 to $255 million and $273 million, respectively. It has also introduced a 2028 net profit forecast of $312 million.

These projections translate to earnings per share (EPS) of $0.05, $0.05, and $0.06 for 2026, 2027, and 2028, respectively, corresponding to price-to-earnings (PE) ratios of 10, 9, and 8 times. Assuming a 100% dividend payout ratio, the implied dividend yields for 2026, 2027, and 2028 are 9.9%, 10.6%, and 12.1%.

Huachuang Securities has set a target price of HK$5.05 for PACIFIC BASIN, representing a potential 29% upside from the current share price, and has maintained its "Buy" rating.

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