Sincere Navigation (2605 TT, NT$30.15) - Optimistic about freight rates entering uptrend starting September

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Sincere Navigation (2605 TT, NT$30.15) - Optimistic about freight rates entering uptrend starting September

Taiwan Equity | Shipping Industry

Company Snapshot

Fubon Research Sincere Navigation (2605 TT)

July 14, 2026

_ Optimistic about freight rates entering uptrend starting September

Buy

Maintain Buy, adjust target price to NT$38, 26% upside

Price Target price

NT$30.15 NT$38 1. 2Q26 profit expected to grow YoY, benefiting from rebound in Capesize freight rates

○Visit notes ○Initiating coverage 2. 2H26 BDI index expected to show gradual uptrend

○Company update ●Earnings revision 3. Freight rates expected to enter uptrend starting from September, driven by raw

●Earnings preview ○Rating change

material demand

Shares out. (mn) 585

Mkt cap (NT$mn) 17,650

Mkt cap (US$mn) 549 2Q26 EPS forecast of NT$0.61, up 206.9% YoY

FINI holding (%) 47.35 Benefiting from the rebound in Capesize freight rates, Sincere Navigation's 2Q26 sales

Local IM holding (%) 0.00 reached NT$1.33bn, up 23.2% YoY but down 2.5% QoQ. For GM, due to the decline in

Directors holding (%) 13.14

VLCC freight rates, GM is estimated to decrease from 42.6% in 1Q26 to 38.8%. In terms

52-week high (NT$) 41.90

52-week low (NT$) 20.10 of profitability, we estimate 2Q26 net profit of NT$387mn, up 206.9% YoY but down 8.1%

Day-trading % 32% QoQ, with EPS of NT$0.61.

ESG rating 5 Industry Rank 21/34 2H26 BDI index expected to show gradual uptrend

Observing the BDI index, supported by robust iron ore shipment from West Africa and

South America, the average BDI index for January to July 2026 reached 2,378 points,

compared to the 2025 average of 1,681 points, representing a YoY increase of 41.4%. The

BDI index was 2,960 points on July 13. Looking ahead, the overall bulk shipping orderbook