China Merchants Energy Shipping Co. Ltd.: 1H26 Profit Alert: Strong QoQ Improvement in 2Q26 Earnings

Research evidence excerpt

China Merchants Energy Shipping Co. Ltd.: 1H26 Profit Alert: Strong QoQ Improvement in 2Q26 Earnings

Update

July 5, 2026 02:37 PM GMT

Morgan Stanley Asia Limited+MChina Merchants Energy Shipping Co. Ltd. | Asia Qianlei Fan, CFA

Pacific Equity Analyst

Qianlei.Fan@morganstanley.com +852 2239-1875

Evan Chen

Research Associate1H26 Profit Alert: Strong QoQ Evan.Chen@morganstanley.com +852 2848-7317

Tenny Song

Equity AnalystImprovement in 2Q26 Earnings Tenny.Song@morganstanley.com +852 3963-1737

Reaction to earnings

Strengthens our thesis Modest upside Modest revision higher

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research China Merchants Energy Shipping Co. Ltd. (601872.SS,

601872 CG)

Key Takeaways Hong Kong/China Transportation & Infrastructure | China

CMES 1H26 prelims were largely in line with MSe; the implied midpoint of 2Q26 Stock Rating Overweight

Industry View In-Line

net profit was Rmb4.2bn. Price target Rmb25.10

Up/downside to price target (%) 48

The significant QoQ improvement comes despite the SoH shutdown during 2Q, Shr price, close (Jul 3, 2026) Rmb17.00

due mainly to CMES's tanker operational proficiency and a strong dry bulk 52-Week Range Rmb22.16-6.02

Sh out, dil, curr (mn) 8,075

market. Mkt cap, curr (mn) Rmb137,267

EV, curr (mn) Rmb144,850

We remain constructive on tanker names as the up-cycle is playing out; 3Q26 Avg daily trading value (mn) Rmb1,445

could see further QoQ upside should the Strait re-open as expected. Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

We see potential upside to F26 earnings if elevated tanker spot rates and oil re- EPS (Rmb)** 0.74 1.40 1.01 1.06

EPS (Rmb)§ 0.72 1.45 1.31 1.24

stocking demand prove stronger/last longer than expected.