UBS Global Research lowered its target price for Pacific Basin Shipping (PBS)(02343) to HK$1.6 from HK$1.76 and maintained its "buy" rating.
The research house said PBS's 1H net loss of US$222m was unsurprising, given it had warned of an impairment charge on its Handysize vessels of US$198m on 3 July.
UBS noted that PBS covered 60%/75% of its Handysize/Supramax's 2H TCE (time-charter equivalent) at US$8,420 and US$10,810, above the blended operating costs of vessels. UBS cut its FY2020 reported/recurring net loss to US$223m/US$14m to reflect the 1H net loss driven by Handysize but it forecast a broadly breakeven in 2H and return to net profit in FY2021.
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