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DBS starts coverage of Cosco Shipping International with "hold" call, citing prospects in logistics

The Edge Singapore
The Edge Singapore • 4 min read
DBS starts coverage of Cosco Shipping International with "hold" call, citing prospects in logistics
The Cogent 1.Logistics Hub, which integrates warehousing space with a patented rooftop container depot can help improve productivity / The Edge Singapore
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DBS Group Research’s Paul Yong has initiated coverage on Cosco Shipping International (Singapore) with a “hold” call and 26 cents price target, with a view that the company is well-positioned to ride on Singapore’s role as a regional logistics hub and that the management is eyeing possible acquisitions to grow this business.

Cosco Shipping International (Singapore) was previously known as Cosco Corporation (Singapore). More than a decade ago, it was an investors’ favourite as it rode the shipping boom and its share price hit a peak of $7.60 in 2007 but things turned south following the Global Financial Crisis.

The company was renamed in 2017 after it divested its loss-making shipbuilding business. Following the 2018 acquisition of then SGX-listed logistics player Cogent Holdings for $490 million, Cosco Shipping International’s focus shifted to logistics, property management, and ship repair and marine engineering.

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