Core Viewpoint - Pacific Shipping (02343) reported a significant decline in its interim performance for the six months ending June 30, 2025, with a revenue drop of 21% year-on-year and a 56% decrease in net profit attributable to shareholders [1] Financial Performance - The company recorded a revenue of $1.0187 billion, down from the previous year [1] - Net profit attributable to shareholders was $25.6 million, a decrease of 56% compared to the same period last year [1] - Basic earnings per share were 3.9 Hong Kong cents, with an interim dividend of 1.6 Hong Kong cents [1] - Basic profit for the first half was $21.9 million, a 50% decline year-on-year, attributed to weak freight market conditions [1] Analyst Insights - CICC noted that the company's performance was below expectations, primarily due to lower-than-expected Time Charter Equivalent (TCE) earnings in the first half [1] - Daiwa stated that the company's basic profit of $22 million for the first half was in line with their expectations, despite a slow recovery, and observed improvements in the dry bulk market [1] - Daiwa also projected a year-on-year decline in Pacific Shipping's profits for the second half of 2025, but highlighted strong cash flow generation and disciplined capital expenditure as supportive of ongoing share buybacks, despite limited likelihood of special dividends [1]

Core Viewpoint - Pacific Basin Shipping reported disappointing 1H25 results, with a significant decline in revenue and net profit, primarily due to lower-than-expected time charter equivalent (TCE) rates amid soft industry conditions [1] Financial Performance - Revenue decreased by 20.5% year-over-year to US$1,019 million in 1H25 - Attributable net profit was US$26 million, resulting in an earnings per share (EPS) of HK$3.9, down 55.6% year-over-year - Underlying earnings, excluding asset disposal income, were US$22 million, a 50% decline year-over-year [1] - The realized freight rate fell year-over-year, but remained above industry averages, with TCE rates for small and large handy vessels decreasing by 7% and 11% year-over-year to US$11,010/day and US$12,230/day, respectively [1] Share Buyback and Dividend Policy - The company plans to repurchase up to HK$312 million in shares during 2025, having already repurchased 93 million shares (1.8% of share capital) for HK$164 million by the end of June [2] - The dividend payout ratio for 1H25 was approximately 50%, maintaining a stable dividend policy [2] Balance Sheet Strength - As of 1H25, the company had net cash of US$66 million and reduced long-term borrowings, enhancing its cash position and alleviating future interest payment pressures [3] - The firm is expected to complete the conversion or redemption of its convertible bonds by August 14 [3] Industry Trends - Limited new supply is anticipated, with expectations for improving supply and demand conditions for small vessels [4] - Demand for minor bulk cargo is closely linked to global economic growth, with potential benefits from the peak season for grain exports in 2H25 [5] - The firm sold five old vessels and acquired three newer vessels, enhancing the competitiveness of its fleet [5] Valuation - The stock is currently trading at 9.8x 2025 estimated P/E and 8.8x 2026 estimated P/E - The target price has been raised by 14.3% to HK$2.4, implying a P/E of 10.1x for 2025 and 9.1x for 2026, with a potential upside of 4.3% [6]

Core Viewpoint - The company's 1H25 performance fell short of expectations, with significant declines in revenue and net profit, primarily due to lower TCE rates and industry freight rates [1][2]. Financial Performance - Revenue for 1H25 was $1.019 billion, a year-on-year decrease of 20.5% - Net profit attributable to shareholders was $26 million, corresponding to an earnings per share of HKD 3.9, down 55.6% year-on-year - The company sold 5 old vessels during the first half of the year, and if asset disposal gains are excluded, the basic earnings for 1H25 would be $22 million, a 50% decline year-on-year [1]. Market Position - Despite the decline in freight rates, the company's TCE rates for small and large handy vessels were $11,010/day and $12,230/day, respectively, which were 27% and 40% higher than market indices, despite year-on-year declines of 7% and 11% [1]. - The BHSI and BSI indices fell by 21.6% and 30.0% year-on-year, indicating that the company's performance was better than the industry average [1]. Shareholder Returns - The company continued its share buyback program, having repurchased 93 million shares, or 1.8% of the initial share capital, using $16.4 million of the planned $31.2 million for 2025 [2]. - The dividend payout ratio for 1H25 was approximately 50%, excluding gains from vessel sales, maintaining a stable dividend policy [2]. Balance Sheet Strength - As of 1H25, the company had a net cash position of $6.6 million, with significant reductions in long-term debt compared to the end of 2024, improving cash flow and reducing future interest payment pressures [2]. - The company expects all convertible bonds to be converted or redeemed by August 14 [2]. Industry Outlook - Limited new supply is anticipated, with expectations for improved demand for small vessels, benefiting from global economic growth and seasonal increases in grain exports [2]. - The company is optimizing its fleet structure by selling older vessels and acquiring newer ones, enhancing long-term competitiveness [2]. Earnings Forecast and Valuation - The company's earnings forecast remains largely unchanged, with the current stock price corresponding to 9.8 times the 2025 earnings and 8.8 times the 2026 earnings [2]. - The target price has been raised by 14.3% to HKD 2.4 per share, reflecting a potential upside of 4.3% from the current stock price [2].

Core Viewpoint - Daiwa's report indicates that Pacific Basin Shipping (02343) experienced a 50% year-on-year decline in basic profit for the first half of the year, amounting to $22 million, which aligns with their expectations. Despite a slow recovery, improvements in the dry bulk market are noted [1][2] Group 1: Financial Performance - The basic profit for Pacific Basin Shipping in the first half of the year fell to $22 million, a 50% decrease compared to the previous year, meeting Daiwa's expectations [1] - Daiwa has raised the target price for the stock from HKD 2.25 to HKD 2.65 and increased the earnings per share forecast for 2025 to 2027 by 10% to 36% [1] Group 2: Market Outlook - Daiwa expresses optimism regarding the dry bulk market, suggesting it is at the bottom of a recovery phase, albeit slowly. They anticipate that earnings for Pacific Basin Shipping will return to positive growth in 2026 based on a low base in 2025 [2] - For the second half of 2025, Pacific Basin Shipping has secured time charter equivalent (TCE) rates for Handysize and Supramax vessels at $11,680 and $13,480 per day, covering 60% and 74% of operational days, respectively [1] - Despite a projected year-on-year decline in earnings for the second half of 2025, Daiwa highlights the potential for profit expansion compared to the first half, supported by robust cash flow generation and disciplined capital expenditure [2]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 2.50, reflecting a 19% increase from the previous target price [7][5]. Core Views - The company's performance in the first half of 2025 showed a significant decline in net profit, down 55.6% year-on-year to USD 25.6 million, primarily due to weak global dry bulk market demand and falling freight rates [1][2]. - The report anticipates a potential recovery in freight rates in the second half of 2025, driven by seasonal demand and macroeconomic factors such as the US interest rate cycle and China's economic recovery [1][4]. - The report suggests that the dry bulk market may have reached a low point in the first half of 2025, with expectations for improved profitability in 2026-2027 [5][4]. Summary by Sections Financial Performance - In the first half of 2025, the company's average daily freight rates for handy and super handy bulk carriers decreased by 6.8% and 10.7% year-on-year, respectively [2]. - The company's fleet operating days decreased by 7.4% for handy and 5.5% for super handy vessels due to the disposal of older ships [3]. - The report projects a decline in net profit for 2025, with estimates revised down by 53.0% to USD 70.58 million, while 2026 and 2027 profits are expected to improve [5][11]. Market Outlook - The report highlights that global dry bulk shipping volumes for iron ore, coal, and grain fell by 4%, 7%, and 13% year-on-year, respectively, in the first half of 2025 [2]. - It emphasizes the importance of monitoring the US interest rate cycle and China's domestic demand as key factors influencing global dry bulk demand and freight rates [4][5]. Valuation - The report adjusts the price-to-book (PB) valuation multiple to 0.9x for 2025, aligning with the company's historical average, and raises the target price to HKD 2.50 [5][8]. - The report indicates that the company's market valuation may benefit from improved liquidity in the Hong Kong stock market [5].

受行业运价影响，公司上半年实现运价同比下滑，但仍好于行业平均水平 上半年BHSI、BSI指数分别同比下降21.6%、30.0%，公司小灵便船、大灵便船分别实现TCE运价为 11,010美元/天及12,230美元/天，同比下滑7%、11%，分别较市场指数高出27%和40%。 上半年股份持续推进回购，分红比例稳定，资产负债表强劲 根据公司年初公告，2025年计划使用不超过3.12亿港元进行股份回购，截至6月底，公司已回购0.93亿 股，占年初股本的1.8%，已使用回购金额1.64亿港元。1H25公司年中分红比例约50%(不包括货船出售 收益)，公司维持稳定的分红政策。公司资产负债表保持强劲，截至1H25，公司现金净额为0.66亿美 元，此外公司通过可转债转股及偿还借款，长期借款较2024年年底大幅下降，进一步改善公司现金状 况，并减轻未来付息压力，根据公司公告，预计到8月14日公司可转换债券均完成转换或赎回。 中金发布研报称，维持太平洋航运(02343)盈利预测基本不变，当前股价对应9.8倍2025年市盈率和8.8倍 2026年市盈率。维持跑赢行业评级不变，考虑到行业风险偏好改善，上调公司目标价14.3%至2.4 ...

Group 1 - The top three stocks with net inflow of southbound funds are Yingfu Fund (02800) with 6.292 billion, Hang Seng China Enterprises (02828) with 1.618 billion, and Southern Hang Seng Technology (03033) with 0.956 billion [1] - The top three stocks with net outflow of southbound funds are China Mobile (00941) with -0.289 billion, Jitu Express-W (01519) with -0.185 billion, and Horizon Robotics-W (09660) with -0.152 billion [1] - In terms of net inflow ratio, Anjii Food (02648), Pacific Shipping (02343), and Yuehai Investment (00270) lead the market with 55.07%, 54.09%, and 53.58% respectively [1] Group 2 - The top ten stocks with the highest net inflow include Yingfu Fund (02800) at 6.292 billion, Hang Seng China Enterprises (02828) at 1.618 billion, and Southern Hang Seng Technology (03033) at 0.956 billion [2] - The top ten stocks with the highest net outflow include China Mobile (00941) at -0.289 billion, Jitu Express-W (01519) at -0.185 billion, and Horizon Robotics-W (09660) at -0.152 billion [2] - The top three stocks with the highest net inflow ratio are Anjii Food (02648) at 55.07%, Pacific Shipping (02343) at 54.09%, and Yuehai Investment (00270) at 53.58% [3]

Major Events - Silver诺医药-B (02591) is set to conduct an IPO from August 7 to August 12, with an expected listing date of August 15 [1] - Boan Biotech (06955) plans to place 48 million shares at a discount of approximately 8.78%, aiming to raise about HKD 780 million [1] - Derin Holdings (01709) intends to raise HKD 653.3 million, focusing on the development of blockchain, RWA, and virtual asset businesses [1] - Fuhong Hanlin (02696) received FDA approval to initiate a Phase 1 clinical trial for HLX43, a PD-L1 targeted antibody-drug conjugate for thymic cancer treatment [1] - China Biopharmaceutical (01177) obtained NMPA approval for the Phase II clinical trial application of LM-24C5, a dual antibody targeting CEACAM5/4-1BB [1] Financial Reports - China Mobile (00941) reported a shareholder profit of HKD 84.235 billion, a year-on-year increase of 5.03% [1] - Manulife Financial-S (00945) announced a core profit of CAD 1.7 billion for the second quarter [1] - Swire Properties (01972) reported a basic profit attributable to shareholders of HKD 4.42 billion, a year-on-year growth of 15% [1] - Hutchison Whampoa (00013) posted a net profit of USD 455 million, a significant year-on-year increase of 1663.32% [1] - MGM China (02282) disclosed a net profit of HKD 2.383 billion, a year-on-year decrease of 11.25% [1] - SMIC (00981) reported a shareholder profit of USD 132 million for the second quarter, with a revenue guidance for the third quarter indicating a sequential growth of 5% to 7% [1] - Zai Lab (09688) achieved a total revenue of approximately USD 216 million for the first half of the year, reflecting a year-on-year growth of 15.35% [1] - Innovent Biologics (01801) reported total product revenue exceeding RMB 5.2 billion for the first half of the year, maintaining a strong growth rate of over 35% [1] - Pacific Basin Shipping (02343) announced a profit attributable to shareholders of USD 25.6 million, a year-on-year decrease of 56% [1] - Lee & Man Paper Manufacturing (02314) reported a net profit of HKD 811 million, a year-on-year increase of 0.7%, with an interim dividend of HKD 0.066 per share [1] - Swire Group reported a profit attributable to shareholders of HKD 815 million for the first half of the year, a year-on-year decrease of 79% [1] - Lee & Man Chemical Company (00746) reported a profit increase of 36.0% to HKD 327 million, with an interim dividend of HKD 0.195 per share [1] - Hua Hong Semiconductor (01347) reported a profit attributable to parent company owners of USD 7.952 million for the second quarter, a year-on-year increase of 19.2% [1] - Wharf Real Estate Investment (01997) reported a loss attributable to shareholders of HKD 2.406 billion, a year-on-year increase of 128.71%, with the first interim dividend of HKD 0.066 per share [1] - Dekang Agriculture (02419) issued a profit warning, expecting a year-on-year increase in fair value adjustments of biological assets to approximately RMB 1.1 billion to 1.4 billion [1] - Mongol Mining (00975) issued a profit warning, anticipating a net loss of approximately USD 15 million to 25 million for the first half of the year, marking a shift from profit to loss [1] - Dongfeng Motor Group (00489) issued a profit warning, expecting a decline in net profit attributable to the parent company of 90% to 95% for the first half of the year [1]

Pacific Basin Shipping (02343) H1 2025 Earnings Call August 07, 2025 06:00 AM ET Speaker0Welcome to today's Pacific Basin twenty twenty five interim results announcement conference call. I am pleased to present chief executive officer, mister Martin Frugaard, and chief financial officer, mister Jimmy Ng. For the first part of this call, all participants will be in listen only mode. And afterwards, there will be a question and answer session. Mister Frugaard, please begin.Speaker1Thank you. Yeah. Welcome, la ...

Financial Performance - The company generated EBITDA of US$121.5 million, underlying profit of US$21.9 million, and net profit of US$25.6 million in 1H 2025[9] - Core business contributed US$50.7 million before overheads in 1H 2025[9] - An interim dividend of HK1.6 cents per share was declared, amounting to US$10.4 million, representing 50% of net profit for the period (excluding vessel disposal gains)[8] - Revenue decreased from US$1,281.5 million in 1H 2024 to US$1,018.7 million in 1H 2025[38] - The company repurchased and cancelled 93 million shares at an average price of HK$1.76 for a total consideration of US$21 million under the 2025 share buyback programme[13] Liquidity and Balance Sheet - The company had net cash of US$66.4 million and available committed liquidity of US$549.9 million as of June 30, 2025[9] - A new US$250 million 7-year revolving credit facility was announced in July 2025, further increasing available committed liquidity[9, 45] - Total borrowings decreased from US$262.3 million as of December 31, 2024, to US$229.1 million as of June 30, 2025[45] Fleet and Operations - Handysize spot market rates in 1H25 averaged US$8,690, up 21% year-over-year[15] - Supramax spot market rates in 1H25 averaged US$8,750, up 34% year-over-year[15] - Handysize TCE was US$11,010 per day, down 7% year-over-year, while Supramax TCE was US$12,230 per day, down 11% year-over-year[22] - The company outperformed the average Handysize index by US$2,320 or 27% per day and the average Supramax index by US$3,480 or 40% per day in 1H 2025[25, 29]