Core Viewpoint - The company reported better-than-expected performance in 1H25, driven by higher freight rates and increased shipping volumes [1] Financial Performance - Revenue for 1H25 reached $1.664 billion, a year-on-year increase of 28.0% - Net profit attributable to shareholders was $630 million, corresponding to a basic earnings per share of $0.24, up 79.7% year-on-year - In 2Q25, the company achieved a container shipping volume of 1.034 million TEUs, a 7.7% increase year-on-year, with a gross margin and net margin significantly improving compared to the previous year [1] Market Trends - The supply of small vessels (below 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 - The demand for small vessels has increased, leading to high charter rates and longer lease terms, diverging from spot market performance - The company is expected to benefit from economic growth in Southeast Asia and ongoing industrial shifts within the region, with import and export volumes to ASEAN countries and Japan showing positive growth [2] Profit Forecast and Valuation - Due to better-than-expected market freight rates, the company has raised its net profit forecasts for 2025 and 2026 by 38.9% to $1.26 billion and $1.06 billion, respectively - The current stock price corresponds to 7.4x and 8.8x P/E ratios for 2025 and 2026 - 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 [2]