Summary of Haitong Development Conference Call Company Overview - Haitong Development is a leading private shipping company in China, ranked 7th in terms of carrying capacity, with 4.84 million deadweight tons as of the end of May 2025 [2][3] - The founder, Zeng Erbin, directly and indirectly controls nearly 70% of the company's shares [2] Core Business Insights - The company has experienced rapid growth in carrying capacity, with a compound annual growth rate (CAGR) of 30% from 2019 to 2024 [2][4] - Haitong Development is expanding its fleet to include Panamax and Capesize bulk carriers, which now account for approximately 30% of its capacity [2][4] - The company's route network covers domestic routes in the Bohai Sea and Yangtze River Delta, as well as over 300 ports in more than 180 countries globally [2][5] - In 2024, overseas business revenue accounted for 65% of total revenue, with a gross profit margin of 92.5% [2][5] Financial Performance - The company's performance is highly correlated with the dry bulk market's conditions, achieving a peak profit of 670 million yuan in 2022 [2][6] - In the first half of 2025, profits significantly declined due to a 30% drop in the Baltic Dry Index (BDI) and costs associated with concentrated maintenance [2][6] - The company implements equity incentive plans and shareholder return plans, distributing at least 30% of distributable profits in cash over the next three years [6] Market Trends - The dry bulk market is transitioning from a recession to a recovery phase, with the average BDI from 2020 to the first half of 2025 increasing by 38% compared to the 2010-2019 average [2][7] - Supply growth is limited, with a significant decline in order volume since 2014, and only 10.4% of orders currently on hand [7] - Demand is closely linked to macroeconomic conditions, with potential growth driven by global mining capacity expansion and factors such as the Federal Reserve's interest rate cuts [8] Future Outlook - The dry bulk market is expected to recover, and Haitong Development's capacity expansion positions it for higher profit elasticity [9] - The company is projected to achieve net profits of 330 million yuan, 600 million yuan, and 750 million yuan from 2025 to 2027 [9] - Risks include macroeconomic downturns and supply excess, which could negatively impact performance [9]

大和表示，对于2025下半年，太平洋航运已锁定小灵便型(Handysize)和超灵便型(Supramax)货船的按期 租合约对等基准收入(TCE)分别为每日11,680美元及13,480美元，覆盖60%及74%的营运日。凭借高覆盖 率，以及超出该行先前预期的2025下半年TCE，大和将小灵便型和超灵便型货船的TCE预测分别上调 1%及3%，并强调下半年盈利较上半年扩张的潜力(尽管同比录得下降)。 更重要的是，相较4月分析师会议时的观点，管理层分享更为乐观的展望。大和相信，干散货市场正触 底复苏，尽管步伐缓慢。基于2025年的低基数，预计太平洋航运的盈利将于2026年恢复正增长。大和续 指出，尽管预计太平洋航运2025下半年盈利同比下降，但预测稳健的现金流生成及严谨的资本支出，将 支持未来持续股份回购，特别是管理层认为其股价仍低于资产价值(但大和认为派发特别股息的可能性 有限)。 大和发布研报称，太平洋航运(02343)今年上半年基本溢利同比跌50%，至2,200万美元，符合该行预 期，尽管复苏步伐缓慢，但看到干散货市场正在改善。大和重申该股"买入"评级，目标价从2.25港元上 调至2.65港元，上调公司202 ...

Summary of Haitong Development Conference Call Company Overview - Haitong Development is the seventh largest shipping company in China, with the actual controller, Zeng Erbin, holding 58% of the shares. The company has rapidly expanded its capacity, achieving a compound annual growth rate (CAGR) of 30% from 2019 to 2024. International business accounts for 65% of revenue and 92.5% of gross profit [2][3]. Financial Performance - The company's net profit attributable to shareholders peaked at 670 million yuan in 2022 but declined in 2023. A rapid growth rate is expected in 2024, although profits are projected to significantly drop in the first half of 2025 due to a decrease in the Baltic Dry Index (BDI) and maintenance impacts [2][6]. Market Dynamics - The dry bulk shipping market is transitioning from a recession to a recovery phase. The current BDI is above the ten-year average but remains weaker than levels seen from 2000 to 2009. The supply side shows a low proportion of new ship orders, while the demand side is expected to grow due to global mining expansion [2][7][8]. Key Projects and Their Impact - The Simandou iron ore project is expected to significantly influence the global iron ore market, with production anticipated to exceed 100 million tons by 2026. If 70% of this is shipped to China, it will account for 6.8% of global iron ore shipping turnover, increasing shipping distances and demand [2][9]. Trade Growth - The growth in bauxite trade is expected to provide additional demand for Capesize vessels, with global bauxite shipping volumes projected to increase by 19% and 5% in 2025 and 2026, respectively [2][10]. Economic Influences - The anticipated interest rate cuts by the Federal Reserve and the reconstruction of Ukraine may positively impact dry bulk shipping demand, with historical data indicating that the BDI typically rebounds during rate cut cycles [2][11]. Future Outlook - Haitong Development aims to continue expanding its fleet and has set a target of 100 ships. The company is expected to benefit from the recovery of the dry bulk market, with projected net profits of 330 million, 600 million, and 750 million yuan for 2025, 2026, and 2027, respectively. The target price is set at 10.7 yuan, reflecting a potential 26% increase from current market value [2][12]. Risks - Potential risks include macroeconomic downturns, oversupply of shipping capacity, and significant fluctuations in oil prices, which could negatively impact the company's performance [2][13].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of 10.7 CNY [1][11]. Core Views - Haitong Development is positioned as a leading private dry bulk shipping company in China, capitalizing on market recovery opportunities. The company has demonstrated strong operational capabilities and cost management, maintaining rapid growth in shipping capacity over recent years, which is expected to release higher profit elasticity as the dry bulk market gradually recovers [8][11]. Summary by Sections Company Overview - Haitong Development, established in 2009, is a leading private dry bulk shipping company in China, ranking 7th among major shipping enterprises in terms of fleet size as of the end of 2024. The company has expanded its fleet from focusing on ultra-large bulk carriers to include various ship types, with a current fleet composition of 69% ultra-large, 10% Panamax, and 22% Capesize vessels [7][9][15]. Market Supply and Demand - The dry bulk market is transitioning from a recession to a recovery phase, with the BDI average for the first half of 2025 at 1290 points, down 41% from the historical average since 2000. Supply growth is expected to remain limited, with the order book for bulk carriers at a historical low of 10.4%. Demand factors include potential increases from the West Simandou project and interest rate cuts [7][53][55]. Company Highlights - The company has achieved a compound annual growth rate (CAGR) of 30% in total shipping capacity from 2019 to 2024. The operational flexibility and cost advantages, along with a well-experienced management team, have allowed the company to effectively manage its fleet and optimize routes, achieving daily TCE rates significantly above market benchmarks [10][11][22]. Financial Projections - The company is projected to achieve net profits of 3.3 billion CNY, 6.0 billion CNY, and 7.5 billion CNY for the years 2025 to 2027, with corresponding EPS of 0.35 CNY, 0.65 CNY, and 0.81 CNY. The report suggests a target market capitalization of approximately 102 billion CNY, indicating a potential growth of 26% from current levels [3][11][35].