Taiwan Navigation Co Ltd (2617 TT, NT$29.70) - Profitability to continue to improve with new vessel launch

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Taiwan Navigation Co Ltd (2617 TT, NT$29.70) - Profitability to continue to improve with new vessel launch

Taiwan Equity | Shipping

Company Snapshot

Fubon Research Taiwan Navigation Co Ltd (2617 TT)

July 1, 2026

_ Profitability to continue to improve with new vessel launch

Buy

Maintain Buy, target price of NT$38, 28% upside

Price Target price

NT$29.70 NT$38 1. 2Q26 profit to show YoY growth, thanks to higher freight rates

○Visit notes ○Initiating coverage 2. 3Q26 mid-sized vessel freight rates to show downward trend, followed by upward

○Company update ●Earnings revision movement as industry enters seasonal downturn

●Earnings preview ○Rating change

3. Profitability to continue to improve with new vessel launch

Shares out. (mn) 417

Mkt cap (NT$mn) 12,390

Mkt cap (US$mn) 389 2Q26 EPS forecast of NT$0.88, up 106.2% YoY, benefiting from freight rate increases

FINI holding (%) 8.57 Taiwan Navigation’s April-May sales reached NT$839mn, up 20.9% YoY. We project 2Q26

Local IM holding (%) 0.00 sales of NT$1.26bn, up 24.2% YoY and 16.9% QoQ. For GM, with the increase in contract

Directors holding (%) 43.43

vessel prices, we forecast GM will rise from 42.0% in 1Q26 to 42.2%, with net profit of

52-week high (NT$) 33.40

52-week low (NT$) 26.23 NT$368mn, up 106.2% YoY and 24.1% QoQ, and EPS of NT$0.88.

Day-trading % 28%

3Q26 mid-sized vessel freight rates to show downward trend, followed by upward

ESG rating 5 Industry Rank 21/34 movement as industry enters seasonal downturn

Observing recent mid-sized vessel freight rates, as the South American grain shipping

peak season ends, and West Africa enters the rainy season affecting raw material

shipment, Panamax spot rates have corrected from a mid-May high of US$22,700 to

US$19,300 as of June 30, a correction of 15.0%.