Group 1 - The total container throughput for August 2025 is projected to be 18.312 million TEU, representing a year-on-year increase of 5.6% [1] - Cumulative container throughput for the year to date is 136.886 million TEU, showing a year-on-year growth of 4.8% [1] - Container throughput at domestic terminals in August reached 14.515 million TEU, reflecting a year-on-year increase of 7.7% [1] - Container throughput at overseas terminals in August amounted to 3.352 million TEU, with a year-on-year growth of 0.4% [1] Group 2 - The total bulk cargo volume for August is 110 million tons, indicating a year-on-year increase of 2.1% [1] - Cumulative bulk cargo volume for the year stands at 843 million tons, which is a year-on-year growth of 0.8% [1]

Core Viewpoint - The company's 1H25 performance was below expectations, primarily due to reduced investment income from its associate, Shanghai Port Group, following a dilution of shareholding in Postal Savings Bank of China. This one-time impact does not affect cash flow, and the core port business showed better-than-expected revenue and profit growth [1][2]. Financial Performance - The company reported a revenue of HKD 6.457 billion for 1H25, representing a year-on-year increase of 11.4%. The net profit attributable to shareholders was HKD 3.584 billion, with basic earnings per share of HKD 0.854, down 19.5% year-on-year [1]. - The operating cash flow declined year-on-year due to timing differences in dividend receipts from associates, but excluding this factor, cash flow remained robust [1]. Port Operations - Domestic and overseas port throughput and profitability increased year-on-year. The company's controlled terminal container throughput rose by 11.3%, while the overall throughput of associate-controlled ports increased by 4.3% [2]. - By region, container throughput in the Pearl River Delta, Yangtze River Delta, Bohai Rim, and overseas terminals grew by 7.8%, 5.9%, 0.1%, and 5.0% respectively. Notably, throughput at the company's Pearl River Delta and overseas terminals increased by 10.2% and 20.1% respectively [2]. Cost Management - The company achieved significant cost reductions through optimized port operations, increased automation, and effective expense management. The cost-to-revenue ratio decreased, resulting in a gross margin of 51%, up 2.9 percentage points year-on-year [2]. Growth Outlook - The company is optimistic about long-term growth potential from overseas terminal volumes. The throughput at major overseas terminals showed impressive growth, with the Sri Lanka HIPG terminal's throughput increasing by 542.9% year-on-year. Upgrades at certain overseas terminals also contributed to volume growth, such as a 24.6% increase at the West Africa TCP terminal [2]. Profit Forecast and Valuation - The company maintains its net profit forecast for 2025 and introduces a net profit estimate of HKD 7.7 billion for 2026. The current stock price corresponds to 8.2 times the 2025 P/E ratio and 8.0 times the 2026 P/E ratio. The target price has been raised by 13.8% to HKD 16.5 per share, reflecting a potential upside of 12.8% from the current price [2].

Core Viewpoint - CICC maintains the net profit forecast for China Merchants Port (00144) for 2025 while introducing a net profit estimate of HKD 7.7 billion for 2026, with the current stock price corresponding to 8.2 times the 2025 P/E ratio and 8.0 times the 2026 P/E ratio [1] Group 1: Financial Performance - The company's 1H25 performance was below expectations, with revenue of HKD 6.457 billion, a year-on-year increase of 11.4%, and a net profit of HKD 3.584 billion, corresponding to basic earnings per share of HKD 0.854, a decrease of 19.5% year-on-year [2] - The decline in net profit was primarily due to reduced investment income from the associate company Shanghai Port Group, which was affected by dilution of shareholding after a capital increase by Postal Savings Bank [2] - Excluding this one-time non-operating loss, the company's core port business revenue and profit growth exceeded expectations, driven by higher-than-expected throughput [2] Group 2: Operational Efficiency - The company achieved significant operational efficiency, with a year-on-year decrease in cost expenses, resulting in a gross profit margin of 51%, an increase of 2.9 percentage points [4] - Administrative expense ratio decreased by 0.8 percentage points, reflecting effective cost control measures [4] Group 3: Growth Potential - The company is optimistic about long-term growth potential from overseas terminal cargo volume, with significant increases in throughput at overseas terminals, such as a 542.9% increase at the Sri Lanka HIPG terminal [5] - The company is enhancing operational capabilities through the introduction of new container shipping routes and equipment upgrades at overseas terminals, contributing to business volume growth [5] - The overall container throughput for the company's controlled terminals increased by 11.3% year-on-year, with notable growth in the Pearl River Delta and overseas terminals [3]

Group 1 - The core point of the article is that China Merchants Port reported a total container throughput of 17.592 million TEUs in May 2025, representing a year-on-year growth of 4.4% [1] - The total bulk cargo throughput reached 113.758 million tons in May 2025, showing a year-on-year increase of 7.4% [1]