SITC(HK:01308) Zhi Tong Cai Jing·2025-08-18 01:47Group 1 - The core viewpoint of the report is that due to better-than-expected market freight rates, the net profit estimates for SeaLand International (01308) for 2025 and 2026 have been raised by 38.9% to $1.26 billion and $1.06 billion respectively, with 2026 earnings based on a cautious assumption of a 9% year-on-year decline in freight rates [1] - The current stock price corresponds to a price-to-earnings ratio of 7.4 and 8.8 for 2025 and 2026 respectively, and the target price has been increased by 15.2% to HKD 28 per share, indicating a potential upside of 4.3% from the current price [1] Group 2 - For the first half of 2025, the company's performance slightly exceeded expectations, with revenue reaching $1.664 billion, a year-on-year increase of 28.0%, and a net profit of $630 million, corresponding to basic earnings per share of $0.24, up 79.7% year-on-year [2] - In the second quarter of 2025, the company maintained rapid growth in cargo volume, completing a container shipping volume of 1.034 million TEU, a year-on-year increase of 7.7%, while the average revenue per container was $756 per TEU, a year-on-year increase of 14.5% [2] Group 3 - The company announced a mid-term dividend payout ratio of approximately 70%, which is consistent with the mid-term dividend rate for 2024, resulting in an attractive dividend yield of 9.5% and 7.9% for 2025 and 2026 respectively [3] Group 4 - The supply trend for small vessels under 3,000 TEU remains tight, with current orders accounting for only 5.4% of the fleet, while vessels over 25 years old represent 11.2% of capacity, indicating a future need for fleet renewal [4] - The demand for small vessels has increased due to economic growth in Southeast Asian countries and ongoing industrial transfer within the Asian region, with expectations for the company to benefit from rapid growth in regional cargo volumes [4]