Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - On Monday, affected by the significant breakthrough in China-US tariff negotiations, the container shipping European route opened higher in the morning. The market expected significant tariff benefits after the closing, and almost all contracts hit the daily limit. On Tuesday, the market sentiment subsided, and concerns about tariff reversals and the strength of the linkage between the European and US routes emerged [9]. - The current spot freight rate has fallen below the long - term contract price and is approaching the cost line, with limited downward space. The 1350$/FEU is an important observation point to see if airlines will "reduce ships" for reporting purposes. The European route freight is in a state of oversupply, with general cargo volume and relatively large supply [9]. - The view that demand is postponed after the tariff suspension has been largely disproven. The 08 peak - season contract will benefit the most, and there may be a rush to export during the peak season in the next 90 days, with some overseas importers starting to replenish inventory for year - end holidays [9]. 3. Summary by Relevant Catalogs 3.1 Shipping Freight Index - **Shanghai Export Container Freight Composite Index (SCFI)**: The present value is 1345, with a 0.32% increase from the previous value of 1341 [5]. - **China Export Container Freight Index (CCFI)**: The present value is 1106, a 1.31% decrease from the previous value of 1121 [5]. - **SCFI Sub - routes**: SCFI - US West increased by 3.30% to 2347; SCFIS - US West rose by 10.19% to 1455; SCFI - US East increased by 1.58% to 3335; SCFI - Northwest Europe decreased by 3.25% to 1161; SCFIS - Northwest Europe dropped by 5.54% to 1303; SCFI - Mediterranean remained unchanged at 2089 [5]. 3.2 EC Contracts - **Contract Prices**: EC2506 increased by 3.55% to 1787.3; EC2508 rose by 7.92% to 2359.3; EC2510 decreased by 5.01% to 1464.7; EC2512 dropped by 5.78% to 1611.2; EC2602 decreased by 4.56% to 1449.0; EC2604 decreased by 3.11% to 1273.2 [5]. - **Contract Positions**: EC2506's position increased by 61 to 38562; EC2508's position increased by 2731 to 48514; EC2410's position increased by 578 to 24456; EC2412's position increased by 110 to 5104; EC2602's position decreased by 29 to 3294; EC2604's position increased by 353 to 3455 [5]. - **Monthly Spreads**: The 10 - 12 spread increased by 250.5 to 894.6; the 12 - 2 spread increased by 21.5 to - 146.5; the 12 - 4 spread decreased by 57.9 to 338.0 [5]. 3.3 Tariff Adjustments - China will reduce tariffs on US goods from 125% to 10% for 90 days, and the US will reduce tariffs on Chinese goods from 145% to 30% for 90 days [5]. - The US will suspend the 24% tariff on Chinese goods (including those from Hong Kong and Macao) for the initial 90 days and retain the remaining 10% tariff, and cancel the additional tariffs imposed by certain executive orders [6]. - The US will reduce the tariff on small parcels from 120% to 54%, maintain a 100 - dollar per - item specific tariff, and cancel the planned increase to 200 dollars [6]. 3.4 Market Strategies - Long positions and arbitrage can be gradually closed for profit [10]

Investment Rating - The investment rating for the company is "Accumulate" [7]. Core Views - The report highlights that the shipping rates are expected to return to normal levels in 2025, with a healthy supply-demand relationship supporting medium to long-term freight rates [4][5]. - The company disposed of four old MR vessels in 2024, generating asset disposal income of 267 million yuan, and currently has ten vessels on order [3][5]. - The management is exploring ways to use capital reserves to cover undistributed profits, aiming to create conditions for future dividends, which could enhance investor return expectations [5]. Financial Summary - The company achieved a total revenue of 64.75 billion yuan in 2024, representing a year-on-year increase of 4.5%, with a net profit attributable to shareholders of 1.921 billion yuan, up 23.4% [10]. - Forecasted net profits for 2025, 2026, and 2027 are 1.404 billion yuan, 1.562 billion yuan, and 1.732 billion yuan, respectively, indicating a decline in 2025 followed by growth in subsequent years [6][5]. - The earnings per share (EPS) for 2025 is projected to be 0.29 yuan, with a price-to-earnings (P/E) ratio of 9.44 [6].