Core Viewpoint - Goldman Sachs has raised the net profit forecasts for China Merchants Port (00144) and COSCO Shipping Ports (01199) for 2025 to 2027 by 2% to 6% [1] Company Summaries - COSCO Shipping Ports is favored due to strong performance at its European terminals and improved performance at Qianhai Port, with a projected dividend yield of 5% in 2025 and a target price increase from HKD 5.3 to HKD 6, rated as "Buy" [1] - China Merchants Port's target price has been raised from HKD 13.1 to HKD 14.2, rated as "Neutral" [1] Industry Insights - Despite increased US tariffs and trade uncertainties, the container throughput at mainland ports grew by 7% year-on-year in the first half of the year [1] - Future growth projections indicate year-on-year increases of 4.6%, 2.7%, and 2.5% for 2025, 2026, and 2027 respectively, suggesting a slowdown to 2% growth in the second half of 2025 [1] - China Merchants Port anticipates a 2% price increase in contract negotiations for 2026, while other operators expect no further price hikes beyond inflation adjustments [1] - Both China Merchants Port and COSCO Shipping Ports are optimistic about contract price growth for overseas terminals due to faster throughput growth and rising costs [1]

Core Viewpoint - Despite the increase in US tariffs and trade uncertainties, the container throughput at mainland ports grew by 7% year-on-year in the first half of the year [1] Group 1: Future Growth Projections - Goldman Sachs forecasts annual growth rates for container throughput of 4.6%, 2.7%, and 2.5% for the years 2025, 2026, and 2027 respectively, indicating a slowdown to 2% in the second half of 2025 [1] Group 2: Pricing and Contract Negotiations - China Merchants Port aims to increase contract prices by 2% in negotiations for 2026, while other operators expect no further price hikes beyond inflation adjustments [1] - Both China Merchants Port and COSCO Shipping Ports are optimistic about contract price growth for overseas terminals due to faster throughput growth and rising costs [1] Group 3: Profit Forecasts and Stock Ratings - Goldman Sachs raised net profit forecasts for China Merchants Port and COSCO Shipping Ports by 2% to 6% for the years 2025 to 2027 [1] - COSCO Shipping Ports is favored due to strong performance at European terminals and improved performance at Qianhai Port, with an expected dividend yield of 5% in 2025; target price increased from HKD 5.3 to HKD 6, rated "Buy" [1] - Target price for China Merchants Port increased from HKD 13.1 to HKD 14.2, rated "Neutral" [1]

Core Insights - In the first four months, China's port cargo throughput reached 5.755 billion tons, reflecting a year-on-year growth of 3.7% [1] - The port container throughput exceeded 11 million TEUs, showing a year-on-year increase of 7.9% [1] Summary by Category Cargo Throughput - China's total port cargo throughput for the first four months was 5.755 billion tons, which is a 3.7% increase compared to the same period last year [1] Container Throughput - The port container throughput surpassed 11 million TEUs, marking a 7.9% year-on-year growth [1]