Da Mo: Lowered SITC International's target price to HK$18.8 with a rating of "keeping pace with the market"

GoldenOctober2024

2025-03-17 04:38:00

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Golden Ten Data reported on March 17 that Morgan Stanley issued a report, pointing out that SITC International (01308. HK) raised its 2025 EPS forecasts by 2% and 2026 by 6%, and introduced 2027 EPS forecasts of US19 cents. The bank believes that further earnings revisions in the 2025-2026 container shipping downcycle will put pressure on SITC’s valuation. Therefore, the bull-benchmark-bear target P/E ratio is adjusted from 14x, 11x and 7x to 12x, 9.5x and 6.0x, respectively. The baseline scenario valuation multiple is broadly in line with the historical average since 2011, taking into account the potential special dividend from 2025 to 2026, while the bull scenario valuation falls within one standard deviation. Accordingly, the bank lowered the weighted target price of SITC International to HK$18.8 from the previous HK$21.3, with the rating “in sync with the broader market”.

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