Transcend Maritime Soars Over 12% as Company Set to Release Mid-Year Earnings Forecast with at Least 220% Growth in Net Profit

Transcend Maritime (02510) has surged over 12% in the market, with its share price rising 6.16% as of the time of writing, currently trading at HK$9.82 and with a turnover of HK$2.02 billion.

Transcend Maritime will hold its board meeting on August 25 (next Monday) to approve its mid-year performance. The company previously announced that it expects net profit for the first half to be between $1.8 billion and $2 billion, representing a significant growth of 220%-255%. This is mainly due to an increase in average freight rates and a rise in the number of vessels leased at higher rates, resulting in increased revenue from charter hire.

CGS-CIMB Securities previously pointed out that the emergence of the Two-Star Alliance will transform the shipping route from a clockwork-type route to a radial route, with smaller ships being used to meet increasing demand and replacing larger container vessels. The exemption by the US 301 investigation for non-Chinese shipowners of vessels below 4,000 TEUs will undoubtedly highlight the flexibility of smaller ships, which may benefit from various events.