Highton Development(SH:603162) Tai Ping Yang·2024-08-19 04:00Investment Rating - The report assigns an "Accumulate" rating for Haitong Development, indicating a positive outlook for the stock over the next six months [3][10]. Core Views - Haitong Development reported significant growth in its 2024 semi-annual results, with total revenue reaching 1.687 billion, a year-on-year increase of 129.03%, and net profit attributable to shareholders of 242 million, up 81.21% from the previous year [1][2]. - The company has effectively controlled operational costs and expenses through refined management, contributing to the revenue growth. Additionally, the disposal of an older vessel generated some profit [1][2]. - The dry bulk shipping cycle is on an upward trend, and the company is expanding its capacity, opening new shipping routes, and diversifying cargo types, which may enhance its resilience against shipping cycle fluctuations [3][9]. Summary by Sections Company Overview - Haitong Development is a leading private dry bulk shipping company in China, engaged in domestic coastal and international ocean transportation. The company went public in March 2023 and paid its first dividend with a payout ratio of 49.8% [2]. - The company operates a fleet primarily consisting of ultra-flexible dry bulk carriers, with a total controlled capacity of 3.39 million deadweight tons, ranking 7th among Chinese shipping companies by capacity as of the end of 2023 [2]. Financial Performance - For the first half of 2024, the Baltic Dry Index (BDI) and the Baltic Supramax Index (BSI) increased by 58.7% and 33.6% respectively, leading to a substantial rise in the company's performance [3]. - The report forecasts revenue growth for the upcoming years, with expected revenues of 1.705 billion in 2024, 3.001 billion in 2025, and 3.493 billion in 2026, reflecting year-on-year growth rates of 76.0%, 16.4%, and 11.0% respectively [5]. Future Outlook - The company is expected to maintain a strong performance trajectory, with net profit projected to reach 432 million in 2024, a 133.6% increase year-on-year [5]. - The report emphasizes the importance of the company's operational strategies, including capacity expansion and refined scheduling, which are anticipated to support its performance through varying shipping cycles [3][9].