Tongzhong Hong Kong Stocks Morning Brief | Strait of Hormuz Situation Boosts Oil Tanker Freight China National Offshore Oil Corporation (00883) Directly Benefits from Rising Oil Prices

【Today’s Headlines】

Risks in the Strait of Hormuz Intensify, Oil Tanker Freight Futures Surge

Shipping intelligence firm Kpler states that on Monday, due to increased uncertainty in the Strait of Hormuz, freight futures prices for Very Large Crude Carriers (VLCCs) soared by up to 85%, then retreated later in the trading session. Spot freight rates from key Middle Eastern oil-producing regions to China have risen from $6.55 per barrel to $12 per barrel, reflecting restricted vessel passage and rising risk premiums.

By deadweight tonnage, about 6% of the global oil tanker fleet is stranded in the Gulf region, with 9.6% of VLCCs compliant with current environmental regulations. Limited crude cargo loading has pushed up freight rates on a few existing charters. Market expectations suggest that export disruptions in the Middle East will increase demand for oil tankers in the Atlantic Basin, U.S. Gulf Coast, and Indian regions.

According to traders and brokers, as Saudi Aramco shifts oil shipments from the Strait of Hormuz to the Red Sea, freight rates for tankers at the Yanbu port have more than doubled, reaching $28 million per vessel.

Market Outlook

U.S. Stock Indices Fall, WTI Crude Futures Rise 5.01%

As of the overnight close, the Dow Jones Industrial Average fell 403.51 points to 48,501.27, down 0.83%; the S&P 500 declined 64.99 points to 6,816.63, down 0.94%; the Nasdaq Composite dropped 232.17 points to 22,516.69, down 1.02%. Most large tech stocks declined, with Micron down nearly 8% and Intel down over 5%.

Most popular Chinese concept stocks declined, with the Nasdaq Golden Dragon China Index down 3.34%. TSMC fell 4.33%, Alibaba dropped 4.89%, and the Hang Seng Index ADR closed at 25,514.83, down 253.25 points or 0.98% from Hong Kong’s close.

NYMEX WTI crude futures for the current month rose $3.57 to $74.80 per barrel, up 5.01%. COMEX gold futures for the current month fell $212.10 to $5,099.50 per ounce, down 3.99%. COMEX silver futures declined $6.55 to $82.30 per ounce, down 7.38%.

Hot Topics Preview

GigaDevice (03986) Plans to Invest 400 Million Yuan to Subscribe to Shanghai Shixi GigaDevice Zhizhi Core Venture Capital Partnership

The fund will mainly invest in unlisted companies in the integrated circuit and related industries, with no less than 70% of the committed capital allocated to the integrated circuit sector. Investment stages include early-stage, small and medium-sized, and high-tech enterprises. The fund’s committed capital is 1.546 billion yuan, with the company planning to contribute 400 million yuan, accounting for approximately 25.87% of the total committed capital (final fund size and company share depend on the fundraising outcome).

Sihuan Pharmaceutical (00460): XuanYueNing® (Piroxicam Tablets) Third Indication Application Approved by NMPA for First-line Treatment of HR+/HER2- Advanced Breast Cancer

Sihuan Pharmaceutical (00460) announced that its wholly owned subsidiary, XuanZhu Biological Technology Co., Ltd., has received approval from the National Medical Products Administration (NMPA) for its new indication application (sNDA) for Piroxicam Tablets (brand name: XuanYueNing®), used in combination with aromatase inhibitors (AIs) for first-line treatment of hormone receptor-positive (HR+), HER2-negative (HER2-) advanced breast cancer.

XuanZhu Biological-B (02575): Third Indication Application for XuanYueNing® Approved by NMPA for First-line Treatment of HR+/HER2- Advanced Breast Cancer

XuanZhu Biological-B (02575) announced that its self-developed innovative drug Piroxicam Tablets (brand name: XuanYueNing®), combined with aromatase inhibitors for first-line treatment of HR+/HER2- advanced breast cancer, has received approval from the NMPA. This is the third approved indication for Piroxicam in China, after its approval for use with fulvestrant and as monotherapy. Piroxicam now covers the entire treatment course for HR+/HER2- advanced breast cancer, significantly expanding patient coverage and enhancing its clinical value and accessibility, supporting future sales growth.

H&H International Holdings (01112) expects 2025 Adjusted Comparable Profit to Grow 15% to 25% Year-over-Year

H&H International Holdings (01112) announced that for the fiscal year ending December 31, 2025, based on the reporting and comparable bases, the group’s total revenue is expected to increase by low double digits compared to last year. This strong growth is driven by all business segments, including adult nutrition and care products, infant nutrition and care products, and pet nutrition and care products.

Guoshengtang (02273) Plans to Acquire 70% Equity Stakes in Jinan Xinyangguang, Jinan Yunshengtang, and Jinan Licheng Yunshengtang

Zhitong Finance APP reports that Guoshengtang (02273) announced that its subsidiary, Shandong Guoshengtang Health Technology Co., Ltd., plans to acquire 70% equity stakes in Jinan Xinyangguang, Jinan Yunshengtang, and Jinan Licheng Yunshengtang by March 3, 2026. All target companies are medical institutions mainly engaged in traditional Chinese medicine services and pharmaceutical retail in Shandong Province, China.

Kingsoft Cloud (03896): Plans to Acquire Target Company Shares for 50 Million and 75 Million RMB

Kingsoft Cloud announced that on March 3, 2026, it entered into share transfer agreements with Wuhan Kingsoft Cloud and Xinghan Zhilian. Under the agreements, Xunlei will transfer 20% of its holdings in the target company to Wuhan Kingsoft Cloud for 50 million RMB, and 30% to Xinghan Zhilian for 75 million RMB.

Pacific Shipping (02343) Reports Annual Results, Shareholders’ Profit of $58.2 Million, Down 56% Year-over-Year

Pacific Shipping (02343) announced its annual results for the year ending December 31, 2025. The group’s revenue was $2.081 billion, down 19% YoY; net profit attributable to shareholders was $58.2 million, down 56%; basic earnings per share were 8.9 HK cents. A final dividend of 6 HK cents per share is proposed.

Minmetals Resources (01208): Annual Profit Before Tax of $1.727 Billion, Up 178% YoY

Revenue growth was driven by increased production of key metals, including copper (up 27%), zinc (up 6%), gold (up 22%), and silver (up 17%), along with rising market prices for these metals. Las Bambas contributed $4.447 billion in revenue (up 49%), the largest contributor to the group’s revenue growth.

Jingtai Holdings (02228) Announces Profit Surprise

Jingtai Holdings (02228) announced that it expects its after-tax profit and profit attributable to owners of the parent for 2025 to be no less than 100 million RMB, turning a profit for the first time and achieving full-year profitability.

Angelalign (06699) Announces Profit Surprise

Angelalign (06699) announced that it expects net profit for fiscal year 2025 to be approximately $24 million to $30 million, representing a 140% to 200% increase from about $10 million in the fiscal year ending December 31, 2024.

【Stock Highlights】

CNOOC (00883): Direct Beneficiary of Rising Oil Prices

CICC’s research report states that, considering a 15% YoY decline in oil prices in 2025 and current upward expectations, it has lowered CNOOC’s (00883) 2025 net profit forecast by 4.2% to 128.4 billion RMB, maintaining the 2026 forecast and projecting 2027 net profit at 142.47 billion RMB. The target prices for CNOOC (600938.SH) A-shares are raised by 29% to 38.8 RMB; for CNOOC Hong Kong stocks, up 22.8% to HKD 28, both rated “Outperform Industry.”

Regarding the Iran situation, investors are advised to focus on upstream exploration and development, oilfield services, and refining companies. In the short term, geopolitical premiums may push oil prices from around $67 per barrel in 2025 to over $70, with Iran controlling the Strait of Hormuz and the stability of Middle Eastern oil flows and Gulf countries’ infrastructure security acting as catalysts for short-term price increases.