Investment Rating - The report maintains a "Buy" rating for the company, with a market price of RMB 6.60 and a sector rating of "Outperform" [1][3]. Core Views - The company reported a significant increase in its H1 2025 performance, with operating revenue reaching RMB 10.775 billion, a year-on-year increase of 44.05%. The net profit attributable to the parent company was RMB 825 million, up 13.08%, while the net profit excluding non-recurring items surged by 52.77% to RMB 835 million. This growth is attributed to enhanced marketing of core cargo sources and improved collaboration with leading industry clients, particularly in high-value cargo segments such as wind power equipment and automotive transportation [3][8]. Summary by Sections Financial Performance - In H1 2025, the company achieved operating revenue of RMB 10.775 billion, a 44.05% increase year-on-year. The net profit attributable to the parent company was RMB 825 million, reflecting a 13.08% growth. The net profit excluding non-recurring items increased by 52.77% to RMB 835 million, indicating a substantial improvement in core business profitability [3][8]. Growth Drivers - The company has focused on expanding its fleet and optimizing its capacity structure, which has led to an increase in the proportion of high-value cargo. The strategy includes strengthening marketing efforts for core cargo sources and enhancing cooperation with top-tier clients, resulting in a higher volume of wind power equipment, energy storage cabinets, engineering machinery, and automobiles [8]. Future Outlook - The report projects continued growth in net profit for 2025-2027, estimating RMB 1.937 billion, RMB 2.361 billion, and RMB 2.670 billion respectively, with year-on-year growth rates of 26.6%, 21.9%, and 13.1%. The earnings per share (EPS) are expected to be RMB 0.71, RMB 0.86, and RMB 0.97, corresponding to price-to-earnings (PE) ratios of 9.3, 7.7, and 6.8 times [5][7].

Group 1: Real Estate Market - In June, the national real estate sales market experienced a volume and price adjustment, with a year-on-year decline in the average daily transaction area of commercial housing in 30 major cities by 2.2%, and a further decline of 9.2% in the first week of July [3] - The average daily transaction area in first, second, and third-tier cities in June showed year-on-year changes of -1.5%, 0.1%, and -7.8%, respectively, with the first week of July seeing declines of -7.2%, -11.7%, and -7.4% [3] Group 2: South Korea's Export Performance - In June, South Korea's exports grew by 4.3% year-on-year, recovering from a previous decline of -1.3% [6] - Key product categories such as ships, semiconductors, and computers showed significant growth, with year-on-year increases of 63.4%, 11.6%, and 15.2%, respectively [6] - Exports to Taiwan and the European Union performed well, while exports to China and the United States declined by 0.5% and 2.7%, respectively [7] Group 3: Consumer Market Trends - Following the "6·18" shopping festival, there was a noticeable decline in both home appliance and automobile sales [8] - In June, automobile retail data showed a slight decrease in sales, attributed to factors such as tight funding for trade-in programs and the end of promotional events [9] - Home appliance sales also experienced a downturn, with the average weekly sales of eight major appliance categories reaching 95.4 billion yuan in the first three weeks of June, but dropping to 42.9 billion yuan in the last week, reflecting a year-on-year decline of 2.7% [10] Group 4: Shipping and Freight Rates - Since June, freight rates on China-US routes have decreased, following a 90-day tariff reduction agreement reached in early May [11] - The shipping capacity on China-US routes increased significantly, leading to a drop in container shipping rates, with rates falling to 2089 and 4124 USD/TEU for the West and East coasts of the US, respectively [13]

Report Overview - The report mainly focuses on the shipping industry, providing data on EC futures contracts, spot freight rate indices, and other related information, as well as analyzing the impact of the Israel - Iran conflict on the shipping market [2][3] 1. EC Futures Contracts 1.1 Contract Price and Trading Volume - EC2506 had a closing price of 1901.8, a decline of 1.68% with a trading volume of 256 and a position change of -536 [2] - EC2508 had a closing price of 2038.0, an increase of 0.39% with a trading volume of 56247 and a position change of 843 [2] - EC2510 had a closing price of 206.7, an increase of 0.10% with a trading volume of 28998 and a position change of -240 [2] - EC2512 had a closing price of 1611.0, a decline of 0.01% with a trading volume of 6225 and a position change of -107 [2] - EC2602 had a closing price of 1431.5, a decline of 1.52% with a trading volume of 2901 and a position change of -230 [2] - EC2604 had a closing price of 1240.4, a decline of 2.61% with a trading volume of 382.4 and a position change of 823 [2] 1.2 Month - to - Month Spread - The spread between EC2506 - 2508 was -136.2, with previous spreads of -95.7, -130.1, and -40.5 for the previous day, two days ago, and three days ago respectively, and a week - on - week change of -60.7 [2] - The spread between EC2508 - 2510 was 6.6, with previous spreads of 621.9, 615.3, and 622.4, and a week - on - week change of -8.5 [2] - The spread between EC2506 - 2510 was 485.7, with previous spreads of 5196, -33.9, and -69.2, and a week - on - week change of 492.3 [2] - The spread between EC2510 - 2512 was 1.6, with previous spreads of -11.1, -194.9, and -196.5, and a week - on - week change of -188.3 [2] - The spread between EC2512 - 2602 was 21.9, with previous spreads of 27.0, 179.5, and 157.6, and a week - on - week change of 161.1 [2] 2. Spot Freight Rate Indices 2.1 European Line Spot Freight Rate Indices - SCEIS was 1247.05 on June 9, 2025, with a change of 29.53% compared to the previous period, and the previous value was 1622.81 with a change of 0.46% [2] - SCFI was 1587 on June 13, 2025, with an increase of 10.62% compared to the previous period, and the previous value was 1667 with an increase of 5.04% [2] - CCFI was 1488.87 on June 13, 2025, with an increase of 1.56% compared to the previous period, and the previous value was 1397.02 [2] - NCFI was 1307.92 on June 13, 2025, with an increase of 16.40% compared to the previous period, and the previous value was 1123.64 with an increase of 5.25% [2] - TCI was 852.18 on June 17, 2025, with no change compared to the previous period, and the previous value was 869.91 with an increase of 2.08% [2] 2.2 Other Routes' Spot Freight Rate Indices - The report also provides seasonal trend charts for various routes' TCI indices, including the Mediterranean West, Mediterranean East, US East, US West, South America West, Southeast Asia Ho Chi Minh, Persian Gulf, East Africa, India - Pakistan, South Africa, and West Africa [17][19] 3. Shipping Market News - On June 18, Iran launched hypersonic missiles at Israel, and the number of ships passing through the Strait of Hormuz was decreasing due to the Israel - Iran conflict [3] - The Baltic and International Maritime Council stated that the large - scale conflict between Israel and Iran made the entire shipping industry uneasy, and some ships were avoiding the Strait of Hormuz [3] - S&P Global Market Intelligence also indicated that the threat of the conflict was "sufficient to disrupt the shipping industry", and it was expected that shipping costs through the Strait of Hormuz would rise [3] 4. Shipping Capacity Arrangement - In June and July 2025, the average weekly shipping capacity was 297,000 TEU and 293,000 TEU respectively [2] - Shipping capacity was neutral from the second half of June to the first half of July, and was relatively high in the second half of July [2] 5. Recent European Line Quotations - Currently, downstream customers are booking spaces for the second half of June (week 24 - 25), with the lowest price of MSK at $2700 - 2800, and other companies' prices mostly reduced to $2900 - 3150, with an average of $2950, equivalent to about 2000 points on the futures market [3] - CMA announced a price increase to $4100 for the European line in July, while ONE and HPL quoted $4043 and $4335 respectively, and MSK opened bookings at $3400 [3]

Report Summary 1. EC Futures Contract Price and Related Data - **Contract Price and Change**: The closing prices of EC2506, EC2508, EC2510, EC2512, EC2602, and EC2604 on the previous day were 1970.3, 2199.1, 1383.0, 1570.1, 1399.8, and 1239.2 respectively, with changes of 4.02%, 4.71%, 3.29%, 2.00%, 3.02%, and 4.85% [2]. - **Volume and Open Interest**: The previous - day trading volumes were 5349, 90432, 14412, 1833, 508, and 886 respectively, and the open interests were 9086, 47961, 23756, 4451, 2687, and 3323 respectively, with open - interest changes of - 1467, 2192, - 33, - 136, - 49, and - 82 [2]. - **Month - to - Month Spread**: The spreads of EC2506 - 2508, EC2508 - 2510, EC2506 - 2510, EC2510 - 2512, and EC2512 - 2602 were - 228.8, 816.1, 587.3, - 187.1, and 170.3 respectively, with month - on - month and week - on - week changes [2]. 2. Spot Freight Rate Index - **SCFIS**: On June 2, 2025, it was 1252.82 points, up 0.46% from the previous period and down 1.44% year - on - year [2]. - **SCFI**: On May 30, 2025, it was $1587/TEU, up 20.50% from the previous period and 14.12% year - on - year [2]. - **CCFI**: On May 30, 2025, it was 1375.62 points, down 1.22% from the previous period and 2.64% year - on - year [2]. - **NCFI**: On May 30, 2025, it was 1067.59 points, up 36.25% from the previous period and 4.35% year - on - year [2]. - **TCI Daily**: On June 4, 2025, it was 769.36 points, with no change from the previous period [2]. 3. Shipping Capacity Arrangement The average weekly shipping capacity in June and July 2025 is 30 and 31 TEU respectively [2]. 4. Recent European Line Quotation - **Week 2 of June**: COSCO&OOCL's offline price increased by $200, and MSK's online price rose from $2100 to $2400. The average of week 23 is about 1800 points [3]. - **Second Half of June**: COSCO, CMA, HPL, ONE, OOCL announced price increases of $4200, $4245, $3500, $2900, $2937 respectively. MSC's price - increase letter indicated a price increase to $3900 in the second half of the month, and MSK's opening price was $2800 [3]. 5. Middle East Situation News - On June 5, Israeli officials said the US would veto the UN Security Council's Gaza cease - fire resolution [4]. - On June 5, the Houthi armed forces claimed to have attacked Israel's Ben - Gurion International Airport [4]. 6. Other Information - The XSI - C index is delayed by three working days [5].