Summary of the Conference Call for COSCO SHIPPING Specialized Carriers Co., Ltd. Company Overview - **Company**: COSCO SHIPPING Specialized Carriers Co., Ltd. - **Industry**: Shipping and Logistics Key Financial Highlights - **2025 Net Profit**: CNY 1.78 billion (+16.29%) - **Adjusted Net Profit**: CNY 1.748 billion (+34.65%) - **Revenue**: CNY 23.21 billion (+38.32%), a historical high - **Automobile Carrier Revenue**: CNY 4.4 billion (+213%), a major growth driver - **Dividend Payout Ratio**: >50% for three consecutive years, with a dividend yield >4% [2][3][4] Growth Drivers - **Fleet Expansion**: 50 new ships delivered in 2025, fleet size at a record high, over 200% growth since the beginning of the 14th Five-Year Plan [3] - **Cargo Structure Optimization**: Over 40% of cargo from high-value sectors like automobiles and wind power, with direct customer ratio exceeding 80% and strategic customers over 50% [2][3][4] Market Dynamics and Risks - **Geopolitical Impact**: The conflict in the Middle East has led to increased shipping costs and operational adjustments, including rerouting vessels to avoid high-risk areas [5][6] - **Fuel Cost Management**: Average fuel cost in 2025 was CNY 580/ton; strategies in place to mitigate rising costs through BAF clauses and flexible pricing mechanisms [6][9][10] - **Supply and Demand**: The automobile shipping market remains tight despite new capacity, with strong demand from Chinese automobile exports [11][12] Future Plans - **2026 Fleet Expansion**: Plans to receive 24 new ships by mid-2026, with a focus on strategic customer service and market-specific capacity updates [8][17] - **Automobile Shipping Goals**: Targeting over 600,000 vehicles shipped in 2026, aiming for a market share exceeding 10% during the 14th Five-Year Plan [11][17] Additional Insights - **BAF Clause Coverage**: Primarily covers pulp and semi-submersible contracts, with adjustments based on specific contract terms rather than fixed intervals [10] - **Contract Structure**: Over 80% of automobile shipping contracts are COA, indicating a strong focus on long-term partnerships with strategic clients [11] - **Emerging Markets**: Increased demand for electric vehicles in regions like Australia and Southeast Asia, though not yet significantly impacting shipping rates [12] Conclusion - **Transition to Growth Company**: COSCO SHIPPING Specialized Carriers is evolving from a cyclical shipping company to a growth-oriented firm with robust financial health and strategic market positioning [4][17]

1. Report Industry Investment Rating - Not provided in the given content 2. Core View of the Report - The market sentiment premium rapidly increased due to the intensification of the Middle - East geopolitical conflict and news related to the Houthi armed forces, pushing up the market. However, this geopolitical event has no substantial impact on actual shipping routes. The market sentiment gradually cooled down and the gains were continuously reversed. Spot freight rates remained stable overall, with the latest quotes from major shipping companies showing differentiation and actual freight forwarding prices having significant discounts. The supply - demand structure has limited support for freight rates. Although the geopolitical conflict advanced the upward inflection point of spot freight rates, the terminal freight demand has not substantially recovered, and the upward space for freight rates is significantly limited [4] 3. Summary by Relevant Catalogs Shipping Derivatives Data - **China Export Container Freight Rates**: The present values and previous values of various freight rate indices are provided, along with their corresponding percentage changes. For example, the SCFI - US West index has a present value of 1139, a previous value of 1121, and a growth rate of 1.64%; the SCFI - US East index has a present value of 1263, a previous value of 1024, and a growth rate of 23.34% [1] Geopolitical News - Iran's President Pezeshkian had a call with the Prime Minister of Pakistan for over an hour, informing about contacts with the US and Middle - East countries and hoping to promote dialogue to ease the situation. Iran stopped supplying 10 million cubic meters of natural gas to southern Iraq since the evening of the 27th. The Houthi armed forces launched an attack on Israel for the first time in the current war. Iran's armed forces spokesman said they are formulating conditions for ending the war and warned the US and Israel. An Iranian senior security official warned that if the US launches a ground operation in the Middle - East, Iran will take counter - actions, and any military action by the "enemy" in the Strait of Hormuz may lead to its complete and unlimited closure. The US is preparing for a weeks - long ground operation in Iran, and thousands of US soldiers and marines have arrived in the Middle - East [2] Market Conditions - The market showed a weak and volatile trend [2] Logic - The market rise was driven by sentiment, and the actual shipping routes were not affected. The supply - demand structure has limited support for freight rates, and the terminal freight demand has not recovered, restricting the upward space of freight rates [4] Strategy - It is recommended to wait and see [5]

Group 1 - The company disclosed the total number of ordinary shareholders as of February 28, 2026, which is 248,139 households [1]

Price Index Trends - The Business Price Index (BPI) rose significantly in March, reaching 1103 points, a month-on-month increase of 16.4% compared to the end of February[3] - The energy index increased by 25.3%, while the chemical index surged by 32.4%, but the non-ferrous index fell by 9.5% month-on-month[4] Commodity Price Movements - In the week of March 16-20, five energy commodities saw price increases of over 5%, accounting for 35.7% of the monitored items[4] - The average price of coal in the Bohai Rim region increased by 1.7%, while the chemical price index surged by 33.8% month-on-month[5] Real Estate Market - As of March 23, the second-hand housing price indices in Beijing, Shanghai, Guangzhou, and Shenzhen decreased by 1.0%, 1.8%, 1.4%, and 0.8% respectively[5] - The second-hand housing prices in these cities have seen significant highs over the past year, with peaks recorded at 159.44, 192.67, 181.71, and 251.13 points[6] Emerging Industries - The photovoltaic industry composite index fell by 13.2% in March, with significant declines in prices for battery cells and polysilicon[6] - Lithium carbonate futures prices decreased by 4.9% month-on-month, while DRAM spot prices fell between 5.3% and 8.9%[9] Shipping and Logistics - The China Container Freight Index (CCFI) rose by 9.0% in the fourth week of March, with significant increases in shipping rates to Los Angeles and New York[7] - The Baltic Dry Index (BDI) decreased by 5.1% month-on-month, indicating a mixed outlook for shipping costs[8] Food Prices - The average wholesale price of pork fell by 12.7% in March, while key vegetable prices dropped by 10.9%[9] - The price index for non-food items, represented by the ICPI, decreased slightly to 99.67, reflecting a month-on-month decline of 0.2%[10]

1. Report Industry Investment Rating - No information provided 2. Core Viewpoints of the Report - The spot market is expected to operate weakly but may be affected by fuel prices [3] - The valuation of the 04 contract is neutral, and the 06 contract has become the main contract. It is recommended to wait and see because it is greatly affected by geopolitical news and shipping company behavior, and its valuation is difficult to anchor [3] - Due to the ongoing and unpredictable geopolitical risks, it is recommended to observe opportunities arising from the deviation of monthly spreads, but attention should be paid to the current poor liquidity of EC [3] 3. Summary by Relevant Catalogs Contract Information - **Contract Prices and Changes**: The closing prices of EC2604 - EC2612 contracts on the previous day ranged from 1592.8 to 2586.2, with price changes from -5.46% to 2%. For example, EC2604 was 1672.9 with a -27.2% change, and EC2606 was 2394.1 with a -5.46% change [2] - **Trading Volume and Open Interest**: The trading volume of contracts on the previous day varied from 42 to 20444, and the open interest ranged from 467 to 16342, with changes in open interest from -1369 to -4 [2] - **Monthly Spreads**: The monthly spreads of different contract combinations (e.g., EC2604 - 2606, EC2604 - 2605) showed different values and changes compared to previous days and weeks. For example, the EC2604 - 2606 spread was -721.2, with a day - on - day increase of 91.4 and a week - on - week decrease of 160.1 [2] Spot Market Information - **Spot Index Changes**: The TERMINAL index on March 30, 2026, was 1752.54 points, with a 3.50% increase from the previous period. The SCFI index on March 27, 2026, was 1703 dollars/TEU, with a 4.10% increase from the previous period [2] - **European Line Spot Situation**: The price increase in April failed. In Week 14, the average quotation was 2570 dollars, equivalent to 1800 points on the disk. In Week 15, Maersk's quotation was 2350 dollars (a 300 - dollar decrease from the previous week), and the average quotation of shipping companies was 2450 dollars, equivalent to 1715 points on the disk. In Week 16, Maersk's opening quotation was 2200/2300 dollars, and a 400 - dollar/FEU surcharge was implemented for long - term contracts [4] Relevant News - Trump said that the US would end the war in Iran in two to three weeks and would give a national speech on the Iran issue at 9 pm local time on the next day (9 am Beijing time on Thursday) [5] - The Iranian president was willing to end the war under the condition of obtaining guarantees [5]

Group 1: Company Overview - The report covers Xinlitai (002294.SZ), a leading domestic company in chronic disease management, focusing on cardiovascular, renal, and metabolic diseases with a comprehensive treatment approach [5][6] - Xinlitai has six approved innovative drugs, with over 50% of its revenue coming from innovative drugs, and 85 new drugs in the pipeline targeting unmet clinical needs [5][6] - The company is expanding into metabolic and oncology fields, developing various drug types to address different clinical needs, including small molecules and monoclonal antibodies [6] Group 2: Financial Performance and Forecast - Xinlitai's revenue is projected to reach 44.29 billion, 53.58 billion, and 64.15 billion yuan for 2025-2027, with year-on-year growth rates of 10.4%, 21.0%, and 19.7% respectively [5][6] - The net profit attributable to shareholders is expected to be 6.59 billion, 7.97 billion, and 9.49 billion yuan for the same period, with growth rates of 9.6%, 20.9%, and 19.1% respectively [5][6] - The report gives an "overweight" rating based on the continuous increase in innovative drug revenue and the acceleration of clinical trials for several key new drugs [5][6] Group 3: Market and Competitive Landscape - The report highlights the competitive landscape in the pharmaceutical industry, noting the potential for intensified market competition and the impact on product sales [5][6] - It emphasizes the importance of innovative drug development and the need for Xinlitai to maintain its competitive edge through ongoing research and development [5][6] Group 4: Strategic Insights - The report discusses the strategic focus on chronic disease management and the development of new drug targets, which positions Xinlitai for long-term growth [5][6] - It notes the company's commitment to addressing common complications associated with hypertension and heart failure, which are prevalent in the target patient population [5][6] Group 5: Industry Trends - The report indicates a broader trend in the pharmaceutical industry towards comprehensive chronic disease management solutions, reflecting a shift in healthcare priorities [5][6] - It suggests that the increasing prevalence of chronic diseases will drive demand for innovative treatment options, benefiting companies like Xinlitai [5][6]

Report Industry Investment Rating - Not provided in the given content Core Viewpoints - The EC2604 contract is expected to trade in a narrow range as it is basically at par with the market's neutral forecast after Maersk's price cut in the third week. The EC2605 contract is expected to follow real - world fluctuations and gradually narrow its premium over the EC2604. The EC2606 and far - month contracts will fluctuate widely with geopolitical factors. In the short term, it is difficult for geopolitical tensions to truly cool down, resulting in large one - sided fluctuations. Seasonal spread opportunities to widen at low levels should be continuously monitored [8][9][10] Summary by Relevant Catalogs 1. Fundamental Tracking - **Contract Price and Trading Data**: The EC2604 contract closed at 1,672.9 points, down 4.79% with a decrease of 1,524 in positions. The EC2605 contract closed at 1,905.3 points, down 7.01% with an increase of 1,622 in positions. The EC2606 contract closed at 2,394.1 points, down 6.74% with a decrease of 1,369 in positions. The EC2607 contract closed at 2,586.2 points, down 3.14% with a decrease of 35 in positions. The EC2608 contract closed at 2,435.8 points, down 4.31% with an increase of 2,639 in positions. The EC2610 contract closed at 1,592.8 points, down 3.85% with a decrease of 47 in positions [1] - **Spot Freight Rates**: The weekly increase in the European - route freight rate index was 14.5%, and the bi - weekly increase was 4.1%. The freight rate of Maersk from April 13 - 19 (week16) was reduced by 100 to 2200/2300 (40GP/40HC). MSC reduced its price by about 200 to 2640 dollars/FEU from April 1 - 12. OOCL reduced its price by about 50 to 2650 dollars/FEU from April 8 - 14, and the special price of the overtime ship CSCL GLOBE was 2550 dollars/FEU. Evergreen temporarily reported 2900 dollars/FEU from April 7 - 14 [1][9] 2. Supply - side Situation - **Weekly Average Capacity**: The latest weekly average capacity in April was 31.9 million TEU/week, with the first and second half - months being 32.5 and 31.4 million TEU/week respectively. In May, the capacity was 31.6 million TEU/week, and the recent capacity reduction mainly came from 3 sailings suspended by the PA alliance after the May Day holiday [8] - **Red Sea and Mandeb Strait Risks**: The threat in the Red Sea and the Mandeb Strait remains active. In the short term, the Houthis are likely to maintain a restrained stance. The most significant impact on the container shipping market may be the interference with the oil exports from Yanbu Port, which will cause the shipping companies' fuel costs to rise [8] 3. Demand - side Situation - **Loading Pressure**: With the upgrade of the PA ship group route, the loading differences among shipping companies continue. The FE4 route in Shanghai Port faces great cargo - collection pressure, especially for ONE, which has the largest cabin - space share. The lower limit of market loading depends on the cargo - collection situation of this route [8] 4. Mid - to - Long - term Outlook - **Global Trade Growth**: The WTO predicts that the global trade growth rate in 2026 will slow down from 4.6% in 2025 to 1.9%, with the Middle East conflict and energy price fluctuations being the main downward risks [9] 5. Valuation - **Freight Rate Forecast**: In the first week of April (week14), the freight rate center was revised down by 50 to 2550 dollars/FEU. It is estimated that in the second week of April (week15), the market freight rate center may fall to around 2400 - 2450 dollars/FEU, equivalent to about 1700 - 1800 points on the SCFIS, which will be included in the first - phase delivery settlement price of the 2604 contract. In the third week of April, the market freight rate center may fall to around 2350 dollars/FEU, equivalent to about 1600 - 1700 points on the SCFIS, which will be included in the second - phase delivery settlement price of the 2604 contract [10] 6. Trend Intensity - The trend intensity of the container shipping index (European route) is 0, indicating a neutral outlook [11]

Investment Rating - The report maintains a "Recommendation" rating for COSCO SHIPPING Specialized Carriers (600428) [1] Core Views - The company achieved a net profit attributable to shareholders of 1.78 billion yuan in 2025, representing a year-on-year increase of 16.3%, driven by volume growth and stable pricing [1][6] - The report highlights a robust performance in Q4 2025, with revenue reaching 6.6 billion yuan, up 39% year-on-year, and a net profit of 450 million yuan, up 37% year-on-year [6] - The company plans to distribute a cash dividend of 0.325 yuan per share, totaling 890 million yuan, with a dividend payout ratio of 50% and a corresponding dividend yield of 3.5% [6] Financial Performance Summary - Total revenue for 2025 was 23.211 billion yuan, with a year-on-year growth rate of 38.3% [2] - The net profit attributable to shareholders for 2026 is estimated at 2.093 billion yuan, reflecting a growth rate of 17.6% [2] - Earnings per share (EPS) for 2025 is reported at 0.65 yuan, with a projected PE ratio of 14 times [2] - The company’s total assets are valued at 43.877 billion yuan, with a debt-to-asset ratio of 57.76% [3] Operational Highlights - The fleet saw a net increase of 47 vessels in 2025, with a total controlled capacity of 198 vessels and 9.12 million deadweight tons by the end of the year [6] - The report notes that the demand for specialized vessels, particularly in the automotive and wind power sectors, remains strong, with significant growth in cargo volumes [6] - The company’s diverse fleet includes leading positions in multi-purpose heavy lift vessels, pulp carriers, and semi-submersible vessels, with a strong global market presence [6] Market Outlook - The report anticipates continued growth in the offshore wind power sector, with a projected CAGR of 27.3% for new installations from 2024 to 2030 [6] - The Chinese electric vehicle industry is expected to maintain a competitive edge, with strong export potential, particularly in the context of the "National Car, National Transport" initiative [6] - The target price for the stock is set at 11.44 yuan, indicating a potential upside of 25% from the current price of 9.16 yuan [2][6]

Core Viewpoint - China COSCO Shipping Development Co., Ltd. reported a decline in revenue and net profit for the year 2025, while showing growth in non-recurring net profit [1] Financial Performance - The company achieved an operating revenue of 25.201 billion yuan, a year-on-year decrease of 8.78% [1] - The net profit attributable to shareholders was 1.609 billion yuan, down 4.54% year-on-year [1] - The non-recurring net profit attributable to shareholders was 1.544 billion yuan, reflecting a year-on-year increase of 10.76% [1] Dividend Distribution - The company proposed a dividend of 0.15 yuan per share to all shareholders [1]

Investment Rating - The report upgrades the investment rating of China Merchants Energy Shipping Company (招商轮船) to "Strong Buy" [1][6]. Core Views - The company is expected to achieve a net profit of 6.012 billion yuan in 2025, representing a year-on-year increase of 17.7%. The fourth quarter of 2025 is projected to contribute a net profit of 2.71 billion yuan, up 56% year-on-year, primarily driven by oil transportation [1][6]. - The report highlights the strong performance of the oil transportation segment, with a net profit of 2.3 billion yuan in Q4 2025, a staggering increase of 300% year-on-year, supported by a significant rise in VLCC (Very Large Crude Carrier) freight rates [6][8]. - The company plans to distribute a cash dividend of 0.25 yuan per share, with a total payout of 25.8 billion yuan, which accounts for 43% of the net profit attributable to shareholders [6]. Financial Summary - Total revenue for 2025 is projected at 28.177 billion yuan, with a year-on-year growth rate of 9.2%. For 2026, revenue is expected to rise to 38.013 billion yuan, reflecting a substantial increase of 34.9% [2][15]. - The net profit attributable to shareholders is forecasted to reach 13.184 billion yuan in 2026, marking a significant growth of 119.3% compared to 2025 [2][15]. - Earnings per share (EPS) are estimated to be 0.74 yuan in 2025, increasing to 1.63 yuan in 2026, with a price-to-earnings (P/E) ratio of 10 for the following years [2][15]. Business Segment Performance - Oil transportation is the standout segment, with a projected net profit of 41.9 billion yuan for 2025, up 59% year-on-year, driven by high freight rates [6][8]. - The dry bulk shipping segment is expected to see a net profit of 11.3 billion yuan in 2025, although it reflects a decline of 20% year-on-year [6]. - Container shipping is anticipated to generate a net profit of 13.6 billion yuan in 2025, with a modest growth of 3.4% year-on-year [6]. Market Outlook - The report expresses optimism about the long-term outlook for the oil transportation industry, citing a tight supply-demand structure and potential demand spikes due to geopolitical factors [6][8]. - The target price for the stock is set at 24.5 yuan, indicating a potential upside of 43% from the current price of 17.03 yuan [2][6].