Group 1 - The shipping sector experienced a significant rally on March 3, with key stocks such as COSCO Shipping Development and Jinjiang Shipping hitting the daily limit up [1] - Previously, China Merchants Energy Shipping achieved a remarkable performance with eight consecutive trading days of limit up, setting a new historical high [1] - Other companies in the sector, including COSCO Shipping Energy, China Merchants Nanyou, Ningbo Shipping, and Ningbo Ocean, also reached their daily limit up [1] Group 2 - Companies like China National Aviation Corporation and COSCO Shipping Holdings approached their daily limit up, indicating strong market interest [1] - The overall performance of the shipping sector reflects a bullish sentiment among investors, contributing to the upward trend in stock prices [1]

Group 1 - The core viewpoint of the news is the performance and financial metrics of China COSCO Shipping Holdings Co., Ltd., which saw a stock price increase of 5.18% to 16.24 CNY per share, with a trading volume of 4.295 billion CNY and a turnover rate of 2.17%, resulting in a total market capitalization of 248.677 billion CNY [1] - China COSCO Shipping Holdings was established on January 5, 2007, and listed on June 26, 2007, primarily engaged in international and domestic container shipping services, with container shipping accounting for 96.06% of its revenue and terminal operations contributing 5.35% [1] Group 2 - From the perspective of major fund holdings, one fund under ICBC Credit Suisse Asset Management has a significant position in China COSCO Shipping, with the fund reducing its holdings by 12,860 shares in the fourth quarter, now holding 192,000 shares, which represents 4.44% of the fund's net value, making it the fourth-largest holding [2] - The fund, named Free Cash Flow ETF ICBC (159236), was established on April 30, 2025, with a current size of 65.6076 million CNY and has achieved a year-to-date return of 12.3%, ranking 1151 out of 5572 in its category, and a cumulative return of 39.75% since inception [2] - The fund manager, He Shun, has a tenure of 2 years and 136 days, managing assets totaling 1.511 billion CNY, with the best return during his tenure being 80.76% and the worst being 11.6% [2]

Summary of Conference Call Notes Industry Overview - **Industry**: Shipping, specifically focusing on tanker shipping and container shipping within the Asia Pacific region, particularly influenced by geopolitical tensions in the Middle East [1][2][3] Key Points and Arguments Impact of Hormuz Strait Disruption - The conflict in the Middle East has affected the availability of the Hormuz Strait, with several commercial vessels reportedly damaged [2] - Clarkson estimates that: - 7% of crude tanker fleet capacity - 5% of LPG fleet capacity - 4% of product tanker capacity - 2% of containership capacity - 2% of bulker capacity - 2% of LNG fleet capacity is currently inside the Persian Gulf [2] Reactions from Shipping Companies - A tanker company has suspended taking any Middle-East fixtures, and ongoing voyages will incur demurrage fees if the area remains inaccessible [2] - A Chinese container shipping company reported minimal operational impacts due to small route exposure [2] Tanker Shipping Market Dynamics - Tanker shipping has been significantly impacted, with 38% of global seaborne crude oil trade passing through the Strait of Hormuz [3] - The tanker shipping market began to outperform in August 2025 due to increased demand for compliant oil from India, further rallying in January 2026 amid escalating US-Iran tensions [4] - As of February 27, 2026, the Middle East–China tanker rate surged to US$218,000 per day [4] Future Considerations for Tanker Shipping - Three dimensions could influence tanker shipping fundamentals: 1. **Compliant Vessel Supply**: Positive if there are prolonged waiting times in the Middle-East or more vessels are captured/sanctioned; negative if sanctions are removed [14] 2. **Compliant Shipment Demand**: Positive if shipments increase from OPEC and non-OPEC countries or if sanctions on Russian or Iranian oil exports are lifted; negative if Middle-East oil seaborne exports decrease due to geopolitical tensions [14] 3. **Bargaining Power**: The industry is seeing stronger bargaining power from operators, which could lead to further rate hikes [14] Outlook on Container Shipping and Airlines - **Container Shipping**: Limited supply/demand impacts from geopolitical tensions; higher oil prices are a negative factor due to cost pressures. A down-cycle is anticipated amid oversupply, despite some near-term positive sentiment [10] - **Airlines**: Chinese airlines do not hedge fuel prices, making them vulnerable to oil price surges. However, an up-cycle is expected if oil prices normalize after short-term hikes [11] Investment Recommendations - Stay constructive on tanker shipping's asset return outlook and be cautious on container shipping, suggesting a reduction in positions with any potential share price rally [9] - Accumulate positions in Chinese airlines after the market adjusts to high oil price shocks [9] Additional Important Insights - The report emphasizes the importance of geopolitical factors in shaping market dynamics and investor sentiment in the shipping industry [1][9] - The analysis includes a detailed breakdown of the tanker fleet's average age and sanctioned fleet development, which are critical for understanding market supply dynamics [19][22]

中远海运3月2日发布关于中东地区局势更新的服务提示。内容如下： 鉴于当前中东地区安全形势的持续演变，以及霍尔木兹海峡海上交通所面临的限制，中远海运集运正密切关注 该地区的局势发展，并与相关当局及安全机构保持紧密沟通，我们始终将船员、船舶及您的货物安全置于首 位。 为确保所有运营的安全性，我们针对现阶段船舶和货物的情况做如下提示： 我们会持续关注中东地区事态发展，并通过官方网站及客服渠道及时向您更新后续进展。感谢您在此特殊时期 对中远海运的理解与一贯支持。 | Service | Vessel Name | Vovage OPR | | Position | REMARK | | --- | --- | --- | --- | --- | --- | | MEX | CSCL INDIAN OCEAN | 075E | COS | IN GULF | | | MEX | CSCL ARCTIC OCEAN | 059E | cos | IN GULF | | | MEX | CSCL GLOBE | 074W | COS | ENROUTE TO GULF | | | MEX | COSCO SHIPPING ...

Core Viewpoint - The company is closely monitoring the evolving security situation in the Middle East, particularly regarding maritime traffic in the Strait of Hormuz, prioritizing the safety of crew, vessels, and cargo [1] Group 1: Safety Measures - Vessels that have entered the Persian Gulf are advised to complete their scheduled port operations and then remain anchored in safe waters [1] - Vessels heading towards the Persian Gulf have been instructed to ensure navigation safety, which may include reducing speed, heading to safe waters, or waiting at designated anchorages for further instructions [1] - The company is evaluating alternative unloading ports for cargo on board, adhering strictly to the terms and conditions outlined in the bill of lading [1] Group 2: Communication and Updates - The company will continue to monitor developments in the Middle East and provide timely updates through official channels and customer service [1]

据中远海运公众号，中远海运集运发布关于中东地区局势更新的服务提示称，鉴于当前中东地区安全形 势的持续演变，以及霍尔木兹海峡海上交通所面临的限制，中远海运集运正密切关注该地区的局势发 展，并与相关当局及安全机构保持紧密沟通，始终将船员、船舶及您的货物安全置于首位。 为确保所有运营的安全性，公司针对现阶段船舶和货物的情况做如下提示：已进入波斯湾内的船舶，在 安全的前提下，完成原定港口靠泊和作业后，在安全水域滞航或锚泊；前往波斯湾方向的船舶，中远海 运集运已通知相关船舶注意航行安全，采取或减速航行，或前往安全水域，或指定庇护锚地等待进一步 通知；中远海运集运正在评估所有在船货物后续处置方案（包括可能的替代卸货港），将严格遵循提单 条款与条件中的相关规定。 ...

Investment Rating - The report maintains an "Overweight" rating for the transportation industry, specifically for waterway transportation [7]. Core Insights - Geopolitical risks are expected to significantly elevate global shipping prices, with all segments (oil, container, and bulk shipping) likely to benefit from this trend [5]. - The ongoing conflict involving the U.S. and Israel against Iran has led to heightened security risks in key shipping routes, particularly the Strait of Hormuz, which is critical for global energy supply [2][3]. - The oil shipping market has seen a dramatic increase in demand and prices due to fears of supply chain disruptions, with VLCC rates from the Middle East to China rising by 183% year-on-year as of late February 2026 [5]. Summary by Sections Oil Shipping - Iran's announcement to close the Strait of Hormuz has escalated concerns over global energy supply disruptions, leading to a surge in oil prices and shipping demand [2]. - The Strait of Hormuz is vital, accounting for 31% of global oil shipping volume in 2025, with major exporters like Saudi Arabia and Iraq heavily reliant on this route [2][11]. Container Shipping - The escalation of tensions in the Middle East has increased risks for shipping routes through the Red Sea and the Strait of Hormuz, prompting shipping companies to reroute vessels, which will likely lead to increased shipping costs and longer transit times [3]. - The report anticipates a rebound in container shipping rates due to these disruptions and the associated risk premiums [3]. Bulk Shipping - Although bulk shipping routes are less affected by Middle Eastern tensions, the overall market sentiment and demand for commodities like iron ore and coal are expected to improve, leading to a potential increase in bulk shipping rates [4]. - The report suggests that the bulk shipping segment will also see price increases in line with the overall market trends driven by geopolitical risks [4]. Investment Recommendations - The report suggests that the oil shipping sector is poised for a strong performance, while container shipping is expected to see a reversal in market expectations, and bulk shipping will likely follow suit [5]. - The ongoing geopolitical tensions are likely to sustain elevated shipping prices, particularly if the conflict persists [5].

Core Viewpoint - COSCO Shipping Holdings has experienced a stock price increase of 0.92% year-to-date, with notable gains of 7.06% over the past five trading days, 6.24% over the past 20 days, and 4.22% over the past 60 days [2] Financial Performance - For the period from January to September 2025, COSCO Shipping Holdings reported a revenue of 167.599 billion yuan, representing a year-on-year decrease of 4.09%. The net profit attributable to shareholders was 27.070 billion yuan, down 29.00% year-on-year [2] - The company has distributed a total of 119.277 billion yuan in dividends since its A-share listing, with 67.272 billion yuan distributed over the past three years [3] Shareholder Information - As of September 30, 2025, the number of shareholders for COSCO Shipping Holdings was 425,300, an increase of 17.75% from the previous period. The average circulating shares per person remained at 0 shares [2] - The top ten circulating shareholders include China Securities Finance Corporation, holding 374 million shares, and Hong Kong Central Clearing Limited, holding 219 million shares, which decreased by 222 million shares from the previous period [3] Market Activity - On March 2, COSCO Shipping Holdings saw its stock price rise by 2.07%, reaching 15.32 yuan per share, with a trading volume of 2.486 billion yuan and a turnover rate of 1.30%. The total market capitalization stood at 234.589 billion yuan [1] - The net outflow of main funds was 19.0594 million yuan, with large orders accounting for 23.82% of purchases and 22.68% of sales [1] Business Overview - COSCO Shipping Holdings, established on January 5, 2007, and listed on June 26, 2007, primarily engages in international and domestic container shipping services, with container shipping accounting for 96.06% of its revenue and terminal operations for 5.35% [2] - The company is classified under the transportation sector, specifically in shipping and ports, and is associated with concepts such as the China-Europe Railway Express and state-owned enterprise reforms [2]

Summary of Conference Call for COSCO SHIPPING Holdings Industry Overview - The shipping industry is currently facing challenges due to unclear new tariff policies and slow recovery of small and medium enterprises post-holiday. [2][3] - The market anticipates a gradual recovery in cargo volume after the Lantern Festival, with more significant shipping activity expected in mid to late March. [2][3] - The suspension rate for routes to Europe and the United States during the Spring Festival was notably high, with future capacity adjustments dependent on cargo volume. [2][3] Key Points and Arguments - **Tariff Policy Impact**: The U.S. Supreme Court ruled against the "reciprocal tariffs" proposed by the Trump administration, leading to uncertainty in future shipping demand. The actual implementation date of the new tariff policy remains unclear. [3] - **Cargo Volume Recovery**: It is expected that cargo volume will gradually recover post-Lantern Festival, with a more noticeable increase in shipping activity anticipated around mid-March. [2][3] - **Capacity Adjustments**: Shipping companies typically suspend 20%-50% of their routes during the holiday period. The global shipping capacity is projected to grow by 3%-5% in 2026, with a decrease in new ship deliveries year-on-year. [3][6] - **Freight Rate Predictions**: The General Rate Increase (GRI) for March is contingent on cargo volume, with expected increases of $800-$1,000 per container. However, early March rates may face discounts due to insufficient cargo volume. [4][6] - **Safety Concerns in Red Sea**: The safety of shipping routes through the Red Sea remains a concern, with predictions that full recovery of routes through the Suez Canal may be delayed until late 2026 or even 2027. [5][6] - **Environmental Regulations**: Stricter environmental regulations are expected to accelerate the retirement of older vessels, with approximately 17% of the global fleet being over 20 years old. [6][7] - **Economic Growth and Demand**: Global economic growth is projected at 3.3% for 2026, with container shipping demand growth expected to slow to 2%-3%. This slowdown in demand growth is anticipated to narrow the supply-demand gap. [7][8] Additional Important Insights - **Market Dynamics**: The relationship between freight rates and the CCFI index is complex and non-linear, influenced by various external and internal factors. [6][8] - **Historical Context**: The shipping industry experienced a significant drop in freight rates in 2025, with the CCFI index declining by approximately 26% year-on-year. [6][8] - **Future Trends**: The overall supply growth is expected to remain healthy and rational, with a gradual increase in vessel scrapping rates anticipated in the coming years. [6][7] This summary encapsulates the key insights and projections discussed during the conference call, highlighting the current state and future outlook of the shipping industry.

Investment Rating - The report rates the transportation industry as "Outperform" [2] Core Insights - The military strike by the US against Iran and the closure of the Strait of Hormuz have profound impacts on the global oil transportation market, potentially leading to supply chain disruptions and increased oil transportation costs [3][15] - Tesla's Cybercab, designed for fully autonomous driving, has been launched, marking a significant step towards the original dedicated era of Robotaxi services [3][17] - A strategic partnership between Youjia Innovation, Didi, and Wall Street Technology aims to advance the large-scale deployment of driverless logistics vehicles, filling a market gap for vehicle-grade autonomous logistics [3][32] - The pre-sale ticket prices for economy class flights during the 2026 Spring Festival have shown a year-on-year increase, indicating stable industry performance as demand is released [3][34] - Uber has launched the Uber Air service supported by Joby, integrating ground and air travel booking, which validates the commercial viability of eVTOL [3][41] Industry Dynamics - The Baltic Air Freight Price Index has decreased month-on-month and year-on-year, while domestic air freight flights have seen a decline [4][44] - The shipping and port sector has experienced an increase in domestic shipping rates, while dry bulk freight rates have also risen [4][52] - The express logistics sector reported a 2.30% year-on-year increase in business volume and a 0.70% increase in revenue as of December 2025 [4] - The average number of international flights operated daily in the last week of February 2026 was 1992.86, reflecting a month-on-month increase of 3.73% and a year-on-year increase of 19.22% [4] - The number of trucks passing through national highways decreased by 40.04% from February 9 to February 15 [4] Investment Recommendations - Focus on opportunities in the shipping sector, particularly oil transportation, dry bulk, and container shipping due to geopolitical tensions, with recommendations for China Merchants Energy Shipping and COSCO Shipping [5] - Consider investments in low-altitude economy and autonomous driving sectors, recommending CITIC Offshore Helicopter and monitoring Cao Cao Mobility [5] - Explore investment opportunities in the travel sector driven by increased demand during the Spring Festival, recommending Air China, China Southern Airlines, and China Eastern Airlines [5] - Look into international market expansion opportunities in express logistics, recommending SF Express and Jitu Express [5] - Pay attention to investment opportunities in the highway sector, recommending Sichuan Chengyu Expressway and other major expressway companies [5]