Daiwa raised the rating of Yang Ming Marine Transport to "Buy" and expects the improvement of the geopolitical environment to benefit freight transport.

Golden Ten Data on May 15, Daiwa Research Report pointed out that year-to-date, the Baltic Dry Bulk Index has fallen by about 35% on average year-on-year, but small ship types, including Supramax and Handysize dry bulk carriers, have fallen more slowly, down 31% and 24% respectively. Pacific Basin (02343.HK) HK) in April, Handysize and Supramaxmax dry bulk carriers' time-charter equivalence benchmark revenue (TCE) was about 15% and 10% lower than last year. The bank expects weak year-to-date demand to continue into the second half of the year, but the risk of further deterioration is limited. Despite the expected decline in TCE, the bank believes that Handysize and Supramax dry bulk carriers will continue to be profitable this year. Based on the current attractive valuation, improving investor confidence in the geopolitical environment, and Pacific Basin's aggressive buyback, the bank upgraded its rating to "buy" from "outperform" and lowered its target price to HK$2.25 from HK$2.4.