Core Viewpoint - SITC International reported a decline in revenue and freight rates in 3Q25, indicating a challenging market environment for container shipping [1][2]. Financial Performance - Revenue for SITC in 3Q25 was US$796 million, down 1.7% year-over-year (YoY) and 11.9% quarter-over-quarter (QoQ) [1]. - Container shipping volume increased by 8.9% YoY but decreased by 11.0% QoQ to 920,179 TEU [1]. - The average freight rate was US$712 per twenty-foot equivalent unit (TEU), reflecting a decrease of 12.0% YoY and 5.7% QoQ [1]. Market Trends - Freight rates softened during the low season in 3Q25, with Southeast Asian route rates declining sharply by 30.6% YoY and 11.7% QoQ, while Japanese route rates increased by 20.5% YoY but fell 2.3% QoQ [2]. - Supply tightness for small container ships in Asia is expected to persist, with an annual supply growth of only 1-2% over the next three years [2][3]. Capacity and Demand Dynamics - Increased feeder demand due to Red Sea diversions has contributed to supply tightness, with capacity for vessels under 3,000 TEU increasing by 8.5% from end-2023 to October 2025 [3]. - Charter rates for 1,700 TEU and 2,750 TEU vessels increased by 37.8% and 16.4% YoY, respectively, indicating tight capacity conditions [3]. Industry Shifts - The trend of industrial relocation may accelerate due to the latest US tariff policy, potentially boosting intra-Asia cargo volumes [4]. - China and ASEAN countries experienced YoY export and import growth of 9.6% from January to September 2025, driven by ongoing supply chain relocations [4]. Valuation - SITC maintains an OUTPERFORM rating with a target price of HK$36 per share, implying a 27.0% upside based on 10.0x 2025 estimated price-to-sales (P/S) [5].

Group 1: Company Overview - Tianlun Gas (01600) has a significant growth potential in gas sales volume in Gansu, particularly in Baiyin and Jingyuan, due to abundant upstream gas sources [1] - The company's urban gas projects are primarily located in Henan, Jilin, Yunnan, Shandong, and Gansu, with industrial and commercial clients benefiting from geographical advantages and minimal impact from international trade tariff fluctuations [1] Group 2: Financial Performance and Projections - The company projects a retail gas sales volume growth of 4%-5% for the year, with a slight recovery in gross margin to 0.48-0.50 RMB per cubic meter, and an increase in value-added business revenue by 10-15% [2] - The company aims to add 200,000 to 220,000 new residential users in urban gas services [2] Group 3: Industry Context - From January to April, the national industrial added value increased by 6.4% year-on-year, while Baiyin's industrial added value grew by 15.5%, driven by rapid growth in coal, chemical, non-ferrous, and electric power industries [1] - The apparent consumption of natural gas in the country decreased by 1.3% year-on-year from January to May, indicating a challenging industry growth environment [2] Group 4: Debt and Dividend Strategy - As of the end of 2024, the company is expected to have total liabilities of 9.648 billion RMB, with a debt-to-asset ratio of 60.6% and an average financing cost of 5.5% [2] - The company has secured a green loan of 125 million USD from the Asian Development Bank at an interest rate of approximately 3.8%, which will help optimize its debt structure and reduce interest expenses [2] - The dividend payout ratio is increasing, with a target core payout ratio of 35% for the year, and the current dividend yield is around 5% [2]