Core Viewpoint - The report from CICC indicates an upward revision of SeaLand International's (01308) net profit for 2025 and 2026 by 38.9% to $1.26 billion and $1.06 billion respectively, based on better-than-expected market freight rates [1] Group 1: Financial Performance - The company reported 1H25 revenue of $1.664 billion, a year-on-year increase of 28.0%, with a net profit of $630 million, translating to basic earnings per share of $0.24, up 79.7% year-on-year, slightly exceeding CICC's expectations due to better freight rates [2] - In 2Q25, the company achieved a container shipping volume of 1.034 million TEU, a 7.7% year-on-year increase, while 1H25 volume grew by 7.3% year-on-year [3] - The gross margin and net margin for 1H25 improved significantly, with increases of 9.3 and 10.9 percentage points year-on-year, respectively, driven by strong freight rate performance [3] Group 2: Dividend Policy - The company announced a mid-term dividend payout ratio of approximately 70%, consistent with the previous year's mid-term dividend rate, suggesting an attractive dividend yield of 9.5% for 2025 and 7.9% for 2026 based on current stock prices [4] Group 3: Market Dynamics - The supply of small vessels (under 3,000 TEU) remains tight, with only 5.4% of orders in hand, while 11.2% of the fleet consists of vessels over 25 years old, indicating a potential inefficiency in the fleet due to aging vessels [5] - The demand for small vessels has increased, leading to high charter rates and longer lease terms, which diverges from the performance of spot freight rates [5] Group 4: Growth Prospects - The company is expected to benefit from economic growth in Southeast Asian countries and ongoing industrial transfers within the Asian region, with a projected increase in trade volume between China and ASEAN countries of 9.4% year-on-year for the first seven months of 2025 [6] - The company, as a leading player in Asian routes, is positioned to achieve growth rates above the industry average, with container volume in the Asian region expected to grow by 3.6% and 3.0% in 2025 and 2026 respectively [6]