(Yicai Global) July 4 -- Shares of Cosco Shipping Holdings rose for a third straight trading day despite the Chinese maritime giant saying it expects a 75 percent plunge in first-half net profit because of lower freight rates in the period and a high year-earlier revenue base.

Cosco Shipping [SHA: 601919] closed up 6.5 percent at CNY10.13 (USD1.40) a share in Shanghai today, though the stock is still down almost 30 percent over the past 12 months.

Net profit likely fell to CNY16.6 billion (USD2.3 billion) in the six months ended June 31, the Beijing-based company said yesterday. Revenue is also expected to have dropped, it added.

The China Containerized Freight Index was on average 69 percent lower in the first half than a year earlier because of supply and demand changes in the container shipping industry.

The industry boomed last year, boosting Cosco Shipping’s performance. Net profit rose 23 percent to a record high of CNY109.6 billion (USD15.2 billion) in 2022. Rationality returned to the industry this year, and Cosco Shipping’s first-quarter profit sank 74 percent to CNY7.1 billion.

Cosco Shipping plans to deliver orders gradually between this year and 2028, helping the industry and the firm achieve sustainable and healthy development through initiatives such as optimizing route networks and ship speed and structure, Deputy General Manager Chen Shuai said earlier this year.

Editor: Futura Costaglione