China Merchants Energy Shipping (CMES) has been boosted by the US sanctions on Cosco Shipping Tankers (Dalian), one of the main subsidiaries of its largest domestic rival in the tanker sector.
Over the past month, Chinese equity analysts have lifted their 2019 earnings forecasts for the Shanghai-listed carrier or upgraded its stock rating.
Their main argument is that CMES is well positioned to benefit from stronger-than-expected tanker earnings in the fourth quarter, with its young fleet of 53 VLCCs the largest in the world.
