Summary of Key Points from the Conference Call Industry or Company Involved - The conference call primarily discusses the impact of the recent US-China trade negotiations on various industries, including technology, electronics, textiles, and shipping. Core Insights and Arguments 1. **US-China Trade Negotiation Outcomes** The negotiations resulted in the suspension of new restrictions and the cancellation of the 10% tariff on fentanyl, which is expected to stabilize US-China relations and positively impact the Chinese economy [1][5][8]. 2. **Impact on Chinese Exports** A potential 10% reduction in US tariffs could lower the effective tariff rate on Chinese goods to around 28%, which would directly boost Chinese exports to the US and enhance overall export growth by approximately one percentage point [1][3][4]. 3. **Technology Sector Benefits** The negotiations are favorable for the technology sector, particularly with the expected cancellation of the 10% fentanyl tariff on electronic products, which would stimulate demand and alleviate valuation pressures on the electronics sector [1][6][7]. 4. **Market Sentiment and Stock Valuation** The outcomes of the negotiations have slightly exceeded market expectations, leading to a recovery in stock valuations, particularly in the technology and electronics sectors. Investor sentiment has improved, creating potential investment opportunities [1][8][9]. 5. **Short-term Market Trends** While the trade negotiation results are not expected to alter the current market trend significantly, there are concerns about overheating in certain sectors, particularly TMT (Technology, Media, and Telecommunications), which may lead to market volatility if new catalysts do not emerge [1][10]. 6. **Recommendations for Sector Allocation** It is suggested to shift towards a more balanced allocation strategy by focusing on sectors such as lithium batteries, non-ferrous metals, and consumer electronics, while also considering opportunities in overseas markets like power grid equipment and commercial vehicles [1][11][12]. 7. **Color on the Non-ferrous Metals Sector** The cancellation of tariffs is expected to lower global trade friction costs and boost demand for non-ferrous metals, marking the beginning of a prolonged bull market for metals like copper, aluminum, and rare earth elements [1][13]. 8. **Shipping Industry Implications** The trade agreement is anticipated to benefit the shipping industry, particularly companies like China COSCO Shipping, due to increased demand for shipping services between China and the US [1][15][16]. 9. **Textile and Apparel Industry Effects** The US remains a significant market for Chinese textiles and apparel, and the easing of trade tensions could improve production utilization rates and profitability in this sector [1][20][23]. 10. **Home Appliance Sector Outlook** The reduction in tariff pressure is expected to positively impact the home appliance sector, particularly for companies with high export ratios to North America, aiding in the recovery of their profit margins [1][21][22]. Other Important but Possibly Overlooked Content - The negotiations have also led to a strategic pause in the implementation of export controls on rare earth products, which underscores China's significant role in the global rare earth supply chain [1][14]. - The overall sentiment in the market remains cautiously optimistic, with expectations of a continued recovery in various sectors as trade relations stabilize [1][9].

Core Viewpoint - SITC International reported a decline in revenue and freight rates in 3Q25, indicating a challenging market environment for container shipping [1][2]. Financial Performance - Revenue for SITC in 3Q25 was US$796 million, down 1.7% year-over-year (YoY) and 11.9% quarter-over-quarter (QoQ) [1]. - Container shipping volume increased by 8.9% YoY but decreased by 11.0% QoQ to 920,179 TEU [1]. - The average freight rate was US$712 per twenty-foot equivalent unit (TEU), reflecting a decrease of 12.0% YoY and 5.7% QoQ [1]. Market Trends - Freight rates softened during the low season in 3Q25, with Southeast Asian route rates declining sharply by 30.6% YoY and 11.7% QoQ, while Japanese route rates increased by 20.5% YoY but fell 2.3% QoQ [2]. - Supply tightness for small container ships in Asia is expected to persist, with an annual supply growth of only 1-2% over the next three years [2][3]. Capacity and Demand Dynamics - Increased feeder demand due to Red Sea diversions has contributed to supply tightness, with capacity for vessels under 3,000 TEU increasing by 8.5% from end-2023 to October 2025 [3]. - Charter rates for 1,700 TEU and 2,750 TEU vessels increased by 37.8% and 16.4% YoY, respectively, indicating tight capacity conditions [3]. Industry Shifts - The trend of industrial relocation may accelerate due to the latest US tariff policy, potentially boosting intra-Asia cargo volumes [4]. - China and ASEAN countries experienced YoY export and import growth of 9.6% from January to September 2025, driven by ongoing supply chain relocations [4]. Valuation - SITC maintains an OUTPERFORM rating with a target price of HK$36 per share, implying a 27.0% upside based on 10.0x 2025 estimated price-to-sales (P/S) [5].

Company Overview - The company reported Q3 2025 operating data, achieving revenue of $796 million, a year-on-year decrease of 1.7% and a quarter-on-quarter decrease of 11.9% [1] - Container shipping volume reached 920,179 TEU, representing a year-on-year increase of 8.9% but a quarter-on-quarter decrease of 11.0% [1] - Average freight rate (excluding slot exchange fee revenue) was $712 per TEU, down 12.0% year-on-year and 5.7% quarter-on-quarter [1] Market Commentary - The market for small container ships in the Asian region is expected to remain tight, with attention on the progress of the Red Sea route reopening [1] - According to Clarksons, the annual new supply of small container ships is projected to be only 1-2% over the next three years, with 11.2% of vessels over 25 years old [1] - The tight supply of small ships this year is primarily due to the need for small vessels to support feeder services after the Red Sea detour and increased demand for small ships in long-distance alliances [1] - Alphaliner data indicates that by October 2025, capacity for vessels under 3,000 TEU will have increased by 8.5% compared to the end of 2023, with new capacity mainly in the Middle East, Indian subcontinent, and European routes [1] - Current rental rates for 1,700/2,750 TEU vessels have increased year-on-year by 37.8% and 16.4%, respectively [1] Industry Trends - The trend of industrial transfer under U.S. tariff policies may accelerate, with cargo volumes in the Asian region expected to continue increasing [2] - From January to September 2025, the year-on-year growth rate of imports and exports between China and ASEAN countries was +9.6% [2] - The ongoing industrial transfer from China to Southeast Asian countries is anticipated to further boost economic growth in these nations, contributing to stable cargo volume growth in the Asian region [2] Profit Forecast and Valuation - The company maintains its profit forecast and industry rating, with the current stock price corresponding to 7.8x and 9.4x P/E ratios for 2025 and 2026, respectively [2] - The target price remains at HKD 36 per share, corresponding to P/E ratios of 10.0x and 11.9x for 2025 and 2026, indicating a potential upside of 27.0% from the current stock price [2]

Company Overview - Company maintains earnings forecast for Hai Feng International (01308) and keeps the outperform rating unchanged, with a target price of HKD 36 per share, corresponding to a P/E ratio of 10.0/11.9 for 2025/2026, indicating a potential upside of 27.0% from the current stock price [1] Recent Performance - In Q3 2025, the company reported revenue of USD 796 million, a year-on-year decrease of 1.7% and a quarter-on-quarter decrease of 11.9%. The container shipping volume reached 920,179 TEU, reflecting a year-on-year increase of 8.9% but a quarter-on-quarter decrease of 11.0%. The average freight rate (excluding slot exchange fees) was USD 712 per TEU, down 12.0% year-on-year and 5.7% quarter-on-quarter [2] Market Trends - The supply of small container ships in the Asian region is expected to remain tight, with only a 1-2% annual increase in new supply over the next three years. Currently, 11.2% of vessels are over 25 years old. The tight supply is driven by the need for small vessels to support feeder services after the Red Sea detour and increased demand for small vessels in long-haul alliances. As of October 2025, the capacity of vessels under 3,000 TEU has increased by 8.5% compared to the end of 2023, with a 2.2% increase in the Asian region. Rental rates for 1,700/2,750 TEU vessels have increased by 37.8% and 16.4% year-on-year, respectively [3] Industry Dynamics - The trend of industrial transfer due to U.S. tariff policies may accelerate, with trade volume between China and ASEAN countries expected to continue increasing. For the period from January to September 2025, the year-on-year growth rates for imports and exports between China and ASEAN countries were +9.6%. The current U.S. tariff framework is likely to expedite the transfer of industries from China to Southeast Asian countries, further driving economic growth in these regions and stabilizing trade volumes in the Asian region [4]

Core Viewpoint - The company maintains its earnings forecast for Seaspan International (01308) and keeps its outperform rating unchanged, with a target price of HKD 36 per share, indicating a potential upside of 27.0% from the current stock price [1] Group 1: Company Performance - The company reported Q3 2025 operational data, achieving revenue of USD 796 million, a year-on-year decrease of 1.7% and a quarter-on-quarter decrease of 11.9% [2] - The company handled a container shipping volume of 920,179 TEU, reflecting a year-on-year increase of 8.9% but a quarter-on-quarter decrease of 11.0% [2] - The average freight rate (excluding slot exchange revenue) was USD 712 per TEU, down 12.0% year-on-year and 5.7% quarter-on-quarter [2] Group 2: Market Trends - The supply of small container ships in the Asian region is expected to remain tight, with only a 1-2% annual increase in new supply over the next three years [3] - The current fleet of ships over 25 years old accounts for 11.2% of the total, contributing to the tight supply situation [3] - The rental rates for 1,700/2,750 TEU vessels have increased by 37.8% and 16.4% year-on-year, respectively, indicating strong demand [3] Group 3: Industry Dynamics - The trend of industrial transfer due to U.S. tariff policies may accelerate, with import and export growth rates between China and ASEAN countries increasing by 9.6% year-on-year for the period of January to September 2025 [4] - The company anticipates that the ongoing industrial transfer from China to Southeast Asian countries will further boost economic growth in the region, leading to stable growth in cargo volumes [4]

Summary of the Conference Call for SITC International Holdings Industry Overview - The shipping industry in the Asia-Pacific region is experiencing strong demand, particularly in Chinese exports and Southeast Asia, with robust performance in the East India route and double-digit growth in Japanese imports. However, Chinese imports are relatively weak, linked to domestic economic conditions [2][3][4]. Key Points and Arguments - **Quarterly Performance**: In Q3 2025, SITC reported a 7.8% year-on-year increase in cargo volume, despite the traditional seasonal slowdown. The demand surge began in late August, indicating strong regional demand [3][4]. - **Future Outlook**: Cargo volume and freight rates are expected to rise in Q4, aligning with the traditional peak season. However, price trends for next year face uncertainties due to supply-demand dynamics [4][11]. - **Cost Structure**: The increase in the proportion of chartered vessels has led to a rise in per-container costs, although falling oil prices have partially offset this impact. Overall, cost changes remain manageable, maintaining a competitive cost advantage [7][8]. - **Fleet Strategy**: SITC operates nearly 120 vessels, with a growing proportion of chartered ships. The average remaining lease term is 6 months, reflecting a conservative approach. The company has sold three owned vessels and plans to sell more older ships while cautiously expanding new routes, particularly in Southeast Asia [6][13]. - **Market Dynamics**: The potential resumption of operations in the Red Sea due to peace talks could alter supply-demand dynamics, potentially leading to a situation where demand exceeds supply, impacting freight rates [10][12]. - **Strategic Partnerships**: SITC has formed a joint venture with Hisense in Thailand to enhance supply chain management and logistics services, aiming to provide tailored solutions for third parties [20][21]. Additional Important Insights - **Differentiated Operations**: The company is adopting a differentiated operational strategy for the Indian route, focusing on efficiency and service quality while gradually establishing self-operated routes [8][9][17]. - **Cash Reserves**: SITC has accumulated significant cash reserves, allowing for strategic flexibility amid changing industry alliances and uncertainties [12][13]. - **Regional Growth**: The company is focusing on expanding its presence in the Indian market, which has substantial import demand due to its consumption-driven economy [16][17]. - **Logistics Development**: SITC emphasizes the importance of land logistics, planning to invest more resources in this area to complement its maritime operations [21]. Conclusion SITC International Holdings is navigating a complex shipping landscape characterized by strong regional demand, strategic fleet management, and a focus on differentiated services. The company is poised for growth while maintaining a cautious approach to future uncertainties in the market.

Core Viewpoint - The Invesco Great Wall National Index Hong Kong Stock Connect Dividend Low Volatility ETF (159569) has shown significant growth in both share volume and fund size in 2024, indicating strong investor interest and performance [1][2]. Fund Overview - The fund was established on August 14, 2024, with an annual management fee of 0.50% and a custody fee of 0.08% [1]. - As of October 24, 2024, the fund's share volume reached 243 million, with a total size of 334 million yuan [1]. - Year-to-date, the fund's share volume has increased by 114.89%, and its size has grown by 158.55% compared to December 31, 2024 [1]. Liquidity Analysis - Over the last 20 trading days, the ETF has accumulated a total trading volume of 807 million yuan, averaging 40.34 million yuan per day [1]. - Since the beginning of the year, the total trading volume has reached 7.729 billion yuan, with an average daily trading volume of 39.43 million yuan over 196 trading days [1]. Fund Management - The current fund managers are Gong Lili and Wang Yang, with Gong managing the fund since August 29, 2024, achieving a return of 40.59%, while Wang has managed it since August 13, 2025, with a return of 0.07% [2]. Top Holdings - The ETF's top holdings include: - Orient Overseas International: 9.65% [3] - China COSCO Shipping: 7.14% [3] - Yancoal Australia: 5.43% [3] - Yanzhou Coal Mining: 4.73% [3] - Seaspan Corporation: 4.36% [3] - China Hongqiao Group: 3.10% [3] - Sinopec: 3.08% [3] - CNOOC: 3.03% [3] - Minsheng Bank: 3.01% [3] - China Everbright Bank: 3.01% [3]

Investment Rating - The investment rating for the transportation industry is "Positive" (maintained) [4] Core Views - The express delivery industry shows resilient demand, with a year-on-year growth of 12.7% in September, indicating a steady expansion of the market [4][25] - The logistics sector is witnessing technological advancements, with JD Logistics planning to procure 3 million robots and 100,000 unmanned vehicles over the next five years, which may enhance supply chain efficiency [5] - The shipping market is expected to benefit from geopolitical factors and trade negotiations, potentially increasing demand for oil transportation and bulk shipping [6][10] - The aviation sector is experiencing growth, with a 10.8% increase in international flight volumes for the upcoming winter-spring season, reflecting a recovery in air travel [10][12] Summary by Sections Express Delivery - In September 2025, the express delivery business volume reached 16.88 billion pieces, a 12.7% year-on-year increase, with revenue of 127.37 billion yuan, up 7.2% [4][25] - Major players like SF Express and JD Logistics are expected to benefit from cyclical recovery and cost control, with significant growth potential [14] Shipping and Ports - The VLCC market may benefit from U.S. sanctions on Russian oil, potentially increasing long-distance shipping demand [6] - The shipping market is expected to see a recovery driven by environmental regulations and geopolitical stability, with recommendations to focus on companies like China Shipping and COSCO [14][15] Aviation - The aviation industry is projected to maintain steady growth, with a 10.3% increase in total transport turnover and a 5.2% rise in passenger transport volume in the first three quarters of 2025 [10] - Airbus has opened a new A320 assembly line in Tianjin, marking a significant milestone in Sino-European cooperation [9] Road and Rail - National logistics operations are running smoothly, with rail freight increasing by 2.33% and highway freight truck traffic rising by 24.72% [13] - Strategic partnerships in the highway sector are being formed to enhance service offerings and operational efficiency [13] Overall Market Performance - From October 20 to October 24, 2025, the transportation sector index increased by 1.12%, underperforming the Shanghai Composite Index, which rose by 2.88% [20][23]

Core Viewpoint - Hai Feng International reported strong growth in total revenue for the first three quarters, driven by increased container volume and average freight rates, despite a seasonal decline in Q3 [1][2]. Group 1: Financial Performance - Total revenue for the first three quarters increased by 16.6% year-on-year to $2.46 billion [1]. - In Q3 2025, average freight rate per container decreased by 12.0% year-on-year to $712, while total revenue fell by 1.8% quarter-on-quarter to $790 million [2]. - Container volume in Q3 2025 reached 920,000 TEUs, reflecting an 8.9% year-on-year increase, but a decline of 11.0% quarter-on-quarter [1][2]. Group 2: Market Outlook - The company anticipates a significant rebound in freight rates and container volume in Q4 due to the seasonal peak and demand driven by industry restructuring, projecting a 3.8% year-on-year increase in container volume to 1.06 million TEUs [1]. - The Southeast Asia export container freight index (SEAFI) showed a decline of 28.2% year-on-year, indicating a challenging pricing environment, but the company expects a 6.7% quarter-on-quarter increase in average freight rates to $760 in Q4 [2]. - The supply-demand structure in the Asian container shipping market is improving, with a tightening supply of small to medium-sized vessels, which is expected to benefit the company in the long term [2]. Group 3: Profit Forecast and Valuation - The company maintains its profit forecast for 2025, 2026, and 2027 at $1.17 billion, $910 million, and $1.10 billion, respectively, with a dividend payout ratio assumption of 70% [3]. - The target price is set at HKD 31.0, based on a PE ratio of 9.2x for 2025, reflecting a premium over the historical average [3].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 31.00 [7][5]. Core Insights - The company demonstrated resilience during the third quarter of 2025, with a year-on-year increase in average revenue per container of 9.2% and a 16.6% increase in total revenue to USD 2.46 billion. Despite a seasonal downturn, a significant recovery is expected in the fourth quarter due to seasonal demand [1][2]. - The company completed a total of 920,000 TEUs in the third quarter, reflecting an 8.9% year-on-year increase, driven by market demand from regional trade growth. A further increase in container volume is anticipated in the fourth quarter [2][3]. - The average revenue per container decreased by 12.0% year-on-year to USD 712, primarily due to a high base from the previous year. However, a rebound is expected in the fourth quarter with a projected increase of 6.7% to USD 760 per container [3][4]. Summary by Sections Operational Performance - In Q3 2025, the company reported a total revenue of USD 790 million, down 1.8% year-on-year and 12.1% quarter-on-quarter. The decline was attributed to seasonal factors affecting freight rates and cargo volumes [3][1]. - The Southeast Asia export container freight index showed a significant decline, with a year-on-year decrease of 28.2% [3]. Market Outlook - The supply-demand structure in the Asian container shipping market is improving, with a tightening supply of small to medium-sized vessels. Demand is expected to grow at a rate of 4.1% in 2025, outpacing supply growth of 2.5% [4]. - The company is well-positioned to benefit from the ongoing restructuring of global supply chains, particularly in the Asian market, which is expected to see increased trade volumes [4]. Financial Projections - The company maintains its profit forecasts for 2025, 2026, and 2027 at USD 1.17 billion, USD 910 million, and USD 1.10 billion respectively, with a consistent dividend payout ratio of 70% [5][11]. - The projected PE ratio for 2025 is 9.2x, with a target price based on historical averages adjusted for standard deviations [5][11].