Core Viewpoint - The "2025 Dry Bulk Shipping Market Seminar and Haitong Development Boarding Activity" successfully took place in Ningbo and Zhoushan, enhancing understanding of the dry bulk shipping market and investment prospects among attendees [1][2]. Company Overview - Haitong Development has focused on dry bulk transportation since its establishment and has become a leading player in the domestic dry bulk shipping sector [1]. - The company aligns with the national "Belt and Road" initiative, executing flexible voyage arrangements for efficient global operations while controlling risks and selecting high-margin routes [1][4]. - As of the first half of 2025, the company's average TCE for self-operated ultra-flexible vessels was $12,258 per day, approximately 33% above market levels [1]. Market Position and Strategy - Haitong Development has expanded its market share in coastal transportation through a "cargo-ship-port-oil" integrated strategy, becoming a major private shipping enterprise for coal transport in the Bohai Bay to Yangtze River route [1][4]. - The company has diversified its cargo types, increasing the proportion of non-coal goods such as iron ore and steel [1]. Industry Insights - The dry bulk shipping market outlook remains optimistic, with supply-side constraints due to historically low order backlogs and stringent environmental regulations limiting vessel speeds [3]. - Demand is also positive, with high export levels of bauxite from West Africa and the Guinea Simandou iron ore project expected to boost shipping volumes and distances [3]. Future Plans - Haitong Development aims to continue expanding its fleet, which currently includes 58 self-operated dry bulk vessels and a total controlled capacity of 4.84 million deadweight tons [4]. - The company plans to maintain a steady expansion approach, leveraging refined management and flexible positioning to achieve higher returns while striving to become an internationally recognized shipping brand [4].

Investment Rating - The report does not specify a clear investment rating for the company [1] Core Views - The company has experienced pressure on freight rates leading to a decline in profits, with a focus on waiting for seasonal demand to release elasticity [1] - In the first half of 2025, the company achieved revenue of 1.8 billion yuan, a year-on-year increase of 6.7%, despite a significant drop in the dry bulk shipping market [8] - The company is expanding its fleet and enhancing its profitability, with a total of 12 new vessels added, ranking among the top in domestic dry bulk transportation capacity [8][9] Financial Summary - Revenue projections for the company are as follows: 2024A: 3,658.77 million yuan, 2025E: 3,668.59 million yuan, 2026E: 4,262.58 million yuan, 2027E: 4,857.25 million yuan, with growth rates of 114.55%, 0.27%, 16.19%, and 13.95% respectively [2] - Net profit attributable to the parent company is projected to be 549.02 million yuan in 2024A, dropping to 263.66 million yuan in 2025E, then recovering to 515.07 million yuan in 2026E and 737.20 million yuan in 2027E [2] - Earnings per share (EPS) are expected to be 0.59 yuan in 2024A, 0.28 yuan in 2025E, 0.56 yuan in 2026E, and 0.80 yuan in 2027E [2] Market Performance - The average daily TCE for the company's foreign trade self-operated super flexible vessels was 12,258 USD, outperforming the market by approximately 33% [8] - The domestic coastal dry bulk transportation market is showing signs of recovery, with a year-on-year increase of 3.9% in cargo volume for the company's coastal charter business [8] Profitability Outlook - The company is expected to see net profits of 2.6 billion yuan, 5.2 billion yuan, and 7.4 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding PE ratios of 30x, 15x, and 11x [9][10]

Core Viewpoint - The company, Fujian Haitong Development Co., Ltd., anticipates a significant decline in net profit for the first half of 2025, projecting a decrease of 60.78% to 69.04% compared to the same period last year [1][2]. Group 1: Performance Forecast - The company expects a net profit attributable to shareholders of the parent company to be between 75 million and 95 million yuan, a decrease of 147.25 million to 167.25 million yuan year-on-year [1][2]. - The projected net profit after deducting non-recurring gains and losses is estimated to be between 73.97 million and 93.97 million yuan, reflecting a year-on-year decrease of 54.36% to 64.07% [1][2]. Group 2: Previous Year’s Performance - For the first half of 2024, the company reported a total profit of 242.76 million yuan and a net profit attributable to shareholders of the parent company of 242.25 million yuan [2]. - The earnings per share for 2024 were reported at 0.27 yuan, adjusted for a stock dividend distribution [2]. Group 3: Reasons for Performance Change - The dry bulk shipping market faced severe challenges in the first half of 2025, with significant declines in shipping rates, as indicated by the average BDI, BCI, BPI, and BSI values dropping by 30% to 33% year-on-year [2]. - The company is undertaking maintenance and upgrades for both existing and new vessels, leading to increased short-term maintenance costs, which have not yet fully realized the benefits of the new capacity [2]. Group 4: Future Outlook - The company plans to adapt to market trends by seizing cyclical opportunities in the shipping market, expanding its controlled capacity, optimizing global route layouts, and enhancing operational efficiency to strengthen profitability [3].

Core Insights - The Baltic Dry Index has risen for the fifth consecutive trading day, supported by increases in Capesize and Panamax freight rates [1] - The index increased by 8 points or 0.6% to 1430 points, marking the highest level since April 4 [1] - Capesize freight rate index rose by 33 points or 1.4% to 2333 points, the highest since April 3, with daily earnings increasing by $279 to $19,350 [1] - The Panamax freight rate index increased by 1 point or 0.1% to 1108 points, ending an eight-day decline, with daily earnings rising by $6 to $9,973 [1] - The Supramax freight rate index decreased by 6 points to 942 points, the lowest level since April 15 [1]

CHARTING A COURSE FOR SUSTAINABLE GROWTH Pacific Basin 1025 TRADING UPDATE 17 APRIL 2025 PERFORMANCE AND MARKET REVIEW Data as at 11 April 2025 ^ Spot market rates adjusted downwards to reflect the smaller average deadweight tonnage of our PB Core Handysize fleet compared to the Baltic Exchange benchmark 38,200 dwt vessel * Excludes 5% commission and tonnage adjusted for Handysize Source: Baltic Exchange - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov ...