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Pacific Basin Shipping
(2343)
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Rating:69Neutral
Price Target:
HK$4.00
â–¼(-2.91% Downside)
Action:Downgraded
Date:10/16/26
The score is driven primarily by solid underlying financial resilience (low leverage and continued positive operating/free cash flow) and a very constructive latest earnings call highlighting strong profitability, liquidity, and shareholder returns. These positives are tempered by weaker near-term technicals (below key moving averages with negative MACD) and evidence of income-statement cyclicality/margin compression versus prior periods, while valuation is supported by a high dividend yield and a moderate P/E.
Positive Factors
Conservative Balance Sheet
Very low and improving leverage gives Pacific Basin financial resilience through dry-bulk cycles. A substantial equity base and reduced debt burden can support fleet renewal, protect liquidity during weaker freight markets, and preserve flexibility for shareholder returns.
Negative Factors
Cyclical Revenue and Margin Pressure
The decline in revenue and margins demonstrates meaningful sensitivity to dry-bulk freight cycles. Lower earnings power can constrain internally funded growth and shareholder distributions, while weaker rates or utilization could continue pressuring profitability over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low and improving leverage gives Pacific Basin financial resilience through dry-bulk cycles. A substantial equity base and reduced debt burden can support fleet renewal, protect liquidity during weaker freight markets, and preserve flexibility for shareholder returns.
Read all positive factors
Pacific Basin Shipping (2343) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$18.26B
Dividend Yield5.95%
Average Volume (3M)15.35M
Price to Earnings (P/E)17.3
Beta (1Y)0.68
Revenue Growth-6.24%
EPS Growth39.60%
CountryHK
Employees4,516
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.03
Shares Outstanding5,157,246,600
10 Day Avg. Volume20,812,742
30 Day Avg. Volume15,348,630
Financial Highlights & Ratios
PEG Ratio-0.48
Price to Book (P/B)0.84
Price to Sales (P/S)0.73
P/FCF Ratio10.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$4.41Price Target Upside7.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.05
Revenue Forecast (FY)HK$2.43B
Pacific Basin Shipping Business Overview & Revenue Model
Company Description
Pacific Basin Shipping Limited, an investment holding entity, specializes in providing dry bulk shipping solutions worldwide. The company extends its operations to include a range of maritime support services such as shipping consultancy, ocean tr...
How the Company Makes Money
Pacific Basin makes money primarily by earning freight and charter income from operating its dry bulk vessels in global commodity trade routes. Its core revenue streams are (1) voyage charter revenue, where the company contracts to carry a cargo b...
Pacific Basin Shipping Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Positive
The call presented a strongly positive set of financial results and operational performance: revenue, TCEs and net profit expanded materially, the company maintained a robust liquidity position, returned in excess of 100% of net profit to shareholders, and preserved fleet optionality through newbuilding and purchase options. Lowlights are primarily risks and cost pressures—higher charter costs, ongoing geopolitical and weather-related market volatility, high asset prices and committed future CapEx—but these are framed as manageable given strong cash, low net debt, and strategic optionality.Positive Updates
Strong Profitability and Earnings Growth
Net profit USD 105.0m representing a year-on-year increase of over 300%; underlying profit USD 94.9m; EBITDA USD 197.8m.
Negative Updates
Rising Chartered Vessel Costs
Chartered vessel costs increased ~10% in H1, driven by stronger freight rates for short-term chartered-in vessels; long-term charter Supramax daily costs ~5% higher YoY.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Profitability and Earnings Growth
Net profit USD 105.0m representing a year-on-year increase of over 300%; underlying profit USD 94.9m; EBITDA USD 197.8m.
Read all positive updates
Company Guidance
Management guided that they expect a resilient dry‑bulk market supported by disruption-related inefficiencies and IMF GDP assumptions (global +3%, China +4.6% for 2026) and reiterated priorities to pursue disciplined, countercyclical fleet renewal, fuel transition, digital/AI, cost control and shareholder returns; they quantify their position with a 254‑vessel operating fleet (107 owned, 13 long‑term chartered, 134 short‑term), 10 newbuildings on order (+2 options = 12, deliveries 2028–H1 2029), purchase options on 13 long‑term charters (declarable 2026–2031) and overall optionality on ~25 vessels, a strong balance sheet with net cash $157.2m, available committed liquidity ~$674m (cash $207m + $467m undrawn), H1 operating cash flow ~$143.5m, H1 CapEx $57.3m (outstanding newbuild payments ~$280m payable 2H2027–2028), interim dividend HKD0.155/share (~$102.2m) plus buybacks (~9.5m shares/$3.5m) and total returns ~ $106m (~103% of H1 net profit), forward cover for Q3 of 78% (Handysize) and 82% (Supramax) at $15,810/day and $18,680/day respectively, and H1 trading performance with company TCEs of $14,150/day (Handy, +29% YoY) and $16,550/day (Supramax, +35% YoY) versus spot ~$12,200 and $14,180 (outperformance $1,950/day (16%) and $2,370/day (17%)).Pacific Basin Shipping Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.17B | 2.08B | 2.58B | 2.30B | 3.28B | 2.97B |
| Gross Profit | 160.23M | 75.95M | 135.24M | 130.95M | 732.08M | 739.34M |
| EBITDA | 344.94M | 260.07M | 357.43M | 348.52M | 922.50M | 883.08M |
| Net Income | 137.43M | 58.26M | 131.70M | 109.38M | 701.86M | 844.81M |
Balance Sheet | ||||||
| Total Assets | 2.28B | 2.28B | 2.41B | 2.43B | 2.65B | 2.75B |
| Cash, Cash Equivalents and Short-Term Investments | 206.50M | 270.52M | 282.04M | 261.40M | 443.82M | 459.67M |
| Total Debt | 143.25M | 230.39M | 344.36M | 366.25M | 471.90M | 648.59M |
| Total Liabilities | 399.33M | 453.39M | 587.39M | 634.53M | 741.33M | 914.21M |
| Stockholders Equity | 1.88B | 1.82B | 1.83B | 1.80B | 1.91B | 1.83B |
Cash Flow | ||||||
| Free Cash Flow | 150.77M | 148.10M | 180.93M | 101.33M | 850.60M | 625.94M |
| Operating Cash Flow | 283.39M | 264.69M | 309.33M | 353.40M | 935.32M | 850.42M |
| Investing Cash Flow | -93.16M | -54.51M | -87.40M | -61.17M | 63.18M | -334.00M |
| Financing Cash Flow | -275.99M | -230.61M | -214.40M | -389.73M | -949.13M | -433.03M |
Pacific Basin Shipping Technical Analysis
Negative
4.12
Price Trends
4.01
Negative
3.56
Positive
3.25
Positive
Market Momentum
-0.09
Positive
39.26
Neutral
27.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2343, the sentiment is Negative. The current price of 4.12 is above the 20-day moving average (MA) of 3.77, above the 50-day MA of 4.01, and above the 200-day MA of 3.25, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 39.26 is Neutral, neither overbought nor oversold. The STOCH value of 27.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2343.
Pacific Basin Shipping Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | HK$10.30B | 13.51 | 9.62% | 8.82% | 1.46% | -4.81% | |
78 Outperform | HK$130.80B | 13.08 | 47.80% | 6.63% | 5.19% | -3.90% | |
69 Neutral | HK$18.26B | 17.26 | 7.42% | 5.95% | -6.24% | 39.60% | |
69 Neutral | HK$311.53B | 7.93 | 14.59% | 5.59% | -4.84% | -42.70% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | HK$318.17M | 51.32 | 0.36% | 2.56% | -13.06% | -92.88% | |
51 Neutral | HK$30.49B | 19.34 | 5.29% | 4.77% | -2.33% | -1.27% |
* Industrials Sector Average
HK:2343
Pacific Basin Shipping
3.62
1.19
49.13%
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29.66%
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17.90
5.24
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COSCO SHIPPING Development Co
0.90
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Jinhui Holdings Co. Ltd.
0.60
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-10.45%
HK:1308
SITC International Holdings Co., Ltd.
48.24
22.04
84.10%
Pacific Basin Shipping Corporate Events
Pacific Basin lifts earnings on tightening dry bulk market
Oct 15, 2026
Pacific Basin Shipping reported a stronger third quarter of 2026 as dry bulk market conditions improved on higher freight rates and resilient tonne-mile demand. Operating in the Handysize, Supramax and Ultramax segments, the company benefited from...
Pacific Basin Delivers Strong Interim Earnings and Boosts Shareholder Returns
Aug 6, 2026
Pacific Basin reported a sharp improvement in interim results for the six months to 30 June 2026, as dry bulk markets strengthened amid geopolitical disruption in the Arabian Gulf. Underlying profit jumped to US$94.9 million from US$21.9 million a...
Pacific Basin Shipping Declares Interim Dividend for First Half of 2026
Aug 6, 2026
Pacific Basin Shipping Limited has declared an interim ordinary cash dividend of HKD 0.155 per share for the six months ended 30 June 2026, payable in Hong Kong dollars. The dividend will be distributed to shareholders on 03 September 2026, with t...
Pacific Basin Shipping expands board committee mandates for risk and people oversight
Aug 3, 2026
Pacific Basin Shipping has renamed its Audit Committee as the Audit and Risk Committee and updated its terms of reference, while keeping the committee’s composition unchanged with three independent non-executive directors and one non-executi...
Pacific Basin Strengthens Governance with New Audit and Risk Committee Mandate
Aug 3, 2026
Pacific Basin Shipping has formally adopted new terms of reference for its Audit and Risk Committee, setting out its role in ensuring integrity and transparency in financial reporting and monitoring compliance with laws and regulations. The commit...
Pacific Basin Shipping Refines Remuneration and People Committee Mandate
Aug 3, 2026
Pacific Basin Shipping has formalised updated terms of reference for its Remuneration and People Committee, granting it broad authority to set and review pay structures for directors, senior management and employees, administer share incentive sch...
Pacific Basin to Review 2026 Interim Results and Potential Dividend in August
Jul 24, 2026
Pacific Basin Shipping Limited has scheduled a board meeting for 6 August 2026 to review and approve the company’s interim results for the six months ended 30 June 2026. The board will also consider the declaration of an interim dividend, si...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.