Navios Maritime Partners (NYSE:NMM) Q3 2025 Earnings Call November 18, 2025 08:30 AM ET Company ParticipantsStratos Desypris - COOAngeliki Frangou - CEOVincent Vandewalle - CTOEri Tsironi - CFOConference Call ParticipantsOmar Nokta - Senior Equity AnalystOperatorThank you for joining us for Navios Maritime Partners' third quarter 2025 earnings conference call. With us today from the company are Chairwoman and CEO, Ms. Angeliki Frangou, Chief Operating Officer, Ms. Stratos Desypris, Chief Financial Officer, ...

Navios Maritime Partners (NYSE:NMM) Q3 2025 Earnings Call November 18, 2025 08:30 AM ET Company ParticipantsStratos Desypris - COOAngeliki Frangou - CEOVincent Vandewalle - CTOEri Tsironi - CFOConference Call ParticipantsOmar Nokta - Senior Equity AnalystOperatorThank you for joining us for Navios Maritime Partners' third quarter 2025 earnings conference call. With us today from the company are Chairwoman and CEO, Ms. Angeliki Frangou, Chief Operating Officer, Ms. Efstratios Desypris, Chief Financial Office ...

Navios Maritime Partners (NYSE:NMM) Q3 2025 Earnings Call November 18, 2025 08:30 AM ET Speaker4Thank you for joining us for Navios Maritime Partners' third quarter 2025 earnings conference call. With us today from the company are Chairwoman and CEO, Ms. Angeliki Frangou, Chief Operating Officer, Ms. Efstratios Desypris, Chief Financial Officer, Ms. Erifili Tsironi, and Chief Trading Officer, Mr. Vincent Vandewalle. As a reminder, this conference call is being webcast. To access the webcast, please go to th ...

Report Industry Investment Rating - The shipping industry for the European route is rated as "bearish" in 2025 [6] Core Viewpoints - The continuous development of the China-Europe Railway Express is changing the traditional China-Europe logistics pattern, evolving from a supplementary role to a competitive force against the shipping system, especially on European routes [10] - The substitution effect of the China-Europe Railway Express on European route shipping will deepen, and the "asymmetric substitution" relationship between the two needs close attention, which may significantly impact European route cargo volume [5][48][49] Summary by Directory 1. Network Development Promotes Comprehensive Competitiveness Improvement - In 2024, the westbound channel's annual departures exceeded 11,000 trains, with container transport volume reaching 1.14 million TEUs, up 12.9% and 12.5% year-on-year respectively, higher than the global shipping trade's 2.3% annual growth rate. As of 2024, the freight volume of the China-Europe Railway Express accounted for 6.3% of the total Asia-Europe shipping trade volume [11] - The "Three Channels and Five Ports" network layout provides systematic advantages. The westbound channel undertakes over 70% of the transport tasks, the middle channel plays a diversion role in winter, and the eastbound channel connects Northeast China with European Russia and Nordic countries. The newly opened west 2 channel saw explosive growth in 2024 [15] - The five ports have evolved into comprehensive hubs, and the "one-time inspection, full-line clearance" mode improves cross-border transport efficiency. The domestic and overseas networks cover many cities, shortening the delivery time to European inland areas by 7 - 10 days compared to shipping [18][23] 2. Differentiated Substitution Effect Driven by Price Factors - There is an asymmetric substitution relationship between the China-Europe Railway Express and shipping. When shipping prices rise sharply, high-value goods requiring high transport timeliness and supply chain stability will shift to the railway, as seen during the 2020 - 2021 pandemic and the 2024 Red Sea crisis [24] - The asymmetric nature lies in that the impact of rising shipping prices on the demand for the railway express is much greater than the impact of railway price adjustments on the return of shipping demand. This is due to the different core demands and cost - accounting logics of the two customer groups [29][31] 3. Multi - Dimensional Market Penetration and Structural Characteristics - In terms of cargo value, high - value products prefer the China-Europe Railway Express due to their high requirements for transport timeliness and reliability, while low - value commodities mainly use shipping. The proportion of high - value goods transported by railway in EU imports from China is about 5%, compared to 3% for low - value goods [32] - Geographically, the time - saving advantage of the railway express is more prominent for inland countries in Central and Eastern Europe. The difference in implicit costs between regions further strengthens the sensitivity of high - value goods to shipping price fluctuations [33][39] 4. Continuous Evolution of Structural Adjustment and Development Trends - The proportion of low - value goods in the China-Europe Railway Express's cargo structure is rising, while that of high - value goods is slightly falling, and the gap between them is narrowing. Geopolitical risks and falling shipping prices have slowed the shift of high - value goods to the railway [42] - The growth of low - value goods' railway transport demand is driven by policy subsidies, the "rail - sea - rail" multimodal transport mode of the west 2 channel, and the optimization of the railway express's operation mode [44] 5. Summary and Outlook - In 2024, the China-Europe Railway Express's cargo volume accounted for 6.3% of the total Asia - Europe trade volume, indicating it has become an important force affecting the China - Europe logistics pattern. Its relationship with shipping is shifting from simple complementarity to a "complementary - competitive" dynamic balance [48] - The substitution effect of the China - Europe Railway Express on European route shipping will deepen. The railway express's internal structural adjustment will continue, and the market shares of high - and low - value goods will become more balanced [48] - When European route shipping prices rise by over 50%, 3 - 5% of the cargo is expected to shift to the railway, with high - value goods' transfer ratio possibly reaching 8 - 10%. The China - Europe Railway Express's penetration in the Mediterranean coastal European inland areas will increase, and its unit transport cost is expected to decrease by 10 - 15% in the next three years [49]

Investment Rating - The report maintains a "Positive" investment rating for the bulk supply chain industry [12] Core Viewpoints - The bulk supply chain industry is at a dual bottom of "commodity prices" and "corporate profits," with a cyclical turning point approaching. Historical data shows a positive correlation between the profits of bulk supply chain companies and PPI, indicating that profits tend to rise in inflationary environments. Since July 2025, the "anti-involution" policy has been implemented, driving improvements in PPI growth rates [2][6][28] - Leading companies in the sector, such as Xiamen Xiangyu, Wuchan Zhongda, and Jianfa Co., have actively adjusted their business strategies and strengthened risk management, with their supply chain business profits turning positive year-on-year in Q3. The combination of liquidity easing and global supply chain restructuring, along with the steady advancement of domestic policies, suggests that the cyclical turning point for certain bulk commodities is gradually approaching, with clearer signals of profit improvement in the sector [2][6][42] Summary by Sections Bulk Supply Chain - The bulk supply chain industry is driven by capital, where the scale of business is determined by the amount of capital and turnover efficiency significantly impacts profitability. Macro demand is a crucial variable affecting trade turnover demand. The industry is currently at a dual bottom of "commodity prices" and "corporate profits," with a cyclical turning point approaching. The implementation of the "anti-involution" policy has led to a rebound in commodity prices, with indices for metals, energy, and agricultural products showing year-on-year increases of 4.5%, 2.5%, and 2.1% respectively in Q3 2025 [6][28][34] - Leading companies are accelerating their globalization efforts and integrating resources across the entire supply chain to enhance market share both domestically and internationally. Companies like Xiamen Xiangyu and Xiamen Guomao are maintaining favorable dividend policies, providing a safety net for investors [6][34][42] Transportation Chain - Domestic passenger traffic continues to grow, with a 5% year-on-year increase in domestic passenger volume and a 19% increase in international passenger volume as of November 14. The average domestic passenger load factor has improved by 2.6 percentage points year-on-year, while the international load factor has increased by 4.8 percentage points [7][43][48] - The report highlights that the supply-demand relationship in the domestic market continues to improve, with oil prices rising by 1.0% year-on-year. The outlook for the industry suggests that revenue is expected to improve marginally, driven by tightening supply and significant cost improvements [7][48] Shipping - The oil shipping sector remains buoyant, with the average VLCC-TCE rate rising by 26.2% to $120,000 per day. The overall tight capacity and OPEC+ production increases are expected to sustain the positive outlook for oil shipping. Conversely, the container shipping sector has seen a decline, with the SCFI index dropping by 2.9% to 1,451 points [8][13] - The report recommends companies such as COSCO Shipping Energy and China Merchants Energy for investment, given the favorable conditions in the oil shipping market [8][42] Logistics - During the 2025 "Double Eleven" shopping festival, the average daily express delivery volume reached 634 million packages, a 9% year-on-year increase. The air freight price index has shown a slight increase as the cross-border e-commerce peak season approaches [9][14] - The report suggests focusing on companies like SF Holding, which is entering a phase of absolute return, and Xiamen Xiangyu, which is expected to benefit from improved export expectations and strong dividend capabilities [9][42]

Core Insights - The report highlights that 81% of surveyed Chinese enterprises in the EU perceive an increase in uncertainty within the current business environment, with half of the respondents indicating a firm commitment to deepening their operations in the EU despite challenges [1][17][19]. Group 1: Business Environment and Challenges - The overall evaluation of the EU business environment by Chinese enterprises has declined for six consecutive years, with a score of 61 in 2025 compared to 73 in 2019, indicating significant deterioration [17]. - Over 35% of surveyed enterprises reported feeling the pressure of a worsening business environment, particularly in sectors like new energy, information technology, and healthcare [17][18]. - High labor costs and complex geopolitical factors are identified as dual pressures affecting Chinese enterprises operating in the EU, with over 40% of respondents experiencing differential treatment due to their Chinese identity [18][19]. Group 2: Trade and Investment Dynamics - In 2024, the bilateral trade volume between China and the EU reached €732.2 billion, showing resilience despite a slight decline of 1.6% year-on-year [10]. - Chinese investment in the EU is shifting focus towards Eastern Europe, with Hungary emerging as a key destination, particularly in the new energy vehicle and battery manufacturing sectors [12]. - The report indicates that over 80% of surveyed enterprises expect their operational status to remain stable or improve in 2024, with 62% anticipating revenue growth in 2025 [14]. Group 3: Recommendations and Future Outlook - The report proposes 336 specific recommendations for improving the EU business environment, focusing on transparency, market access, fair competition, and supply chain security [25]. - It emphasizes the importance of balancing economic security with openness to foster a stable policy environment for enterprises [25][26]. - The year 2025 marks the 50th anniversary of China-EU diplomatic relations, which is seen as an opportunity to deepen mutual trust and cooperation across various sectors [26].

Core Viewpoint - The recent performance of the Hong Kong IPO market has been active, with several stocks showing significant gains, particularly Derxiang Shipping (02510.HK), which has seen a remarkable increase in its stock price since its listing on November 1, 2024, becoming a focal point in the sector [2] Group 1: Company Performance - Derxiang Shipping's stock price reached a closing price of HKD 9.13 on November 13, 2025, representing a cumulative increase of 174.8% since its listing, and an increase of 118% from its initial offering price of HKD 4.18 per share [2] - The company has a solid business layout and excellent performance, which has further consolidated its market-leading position [3] - As of June 30, 2025, Derxiang Shipping operated 49 routes, serving 22 countries and regions globally, with approximately 60 ports [3] Group 2: Market Conditions - The shipping market experienced a price surge in May and June 2025, driven by concentrated demand for exports and tight port capacity, leading to a rapid increase in global shipping prices [3] - Ongoing tensions in the Middle East have increased risks on existing shipping routes, forcing vessels to take longer alternative routes, which not only extended transit times but also raised operational costs such as fuel and labor, further supporting rising shipping prices [3] Group 3: Financial Performance - In the first half of 2025, Derxiang Shipping reported revenues of approximately USD 641 million, a year-on-year increase of 18.7%, and a net profit of USD 189 million, a substantial year-on-year growth of 222.0% [4] - The gross profit margin improved from 8.7% in the same period last year to 19.8% [4] - The significant profit increase was attributed to rising average freight rates and an increase in the number of vessels rented at higher rates [5] Group 4: Operational Efficiency - The young fleet structure of Derxiang Shipping has reduced maintenance costs and improved operational efficiency and fuel economy [5] - A high proportion of owned vessels has decreased reliance on the charter market, providing the company with greater operational flexibility and cost control capabilities, which is beneficial for further profit enhancement [5] Group 5: Resilience in Performance - Despite market fluctuations in the second half of 2025, Derxiang Shipping maintained strong performance, with revenues of USD 963 million in the first nine months, a slight year-on-year increase of 0.51% [6] - The company’s flexible market strategy, young fleet structure, and focus on the Asia-Pacific market have allowed it to sustain steady growth amid global market volatility [6]

今年9月，西部陆海新通道铁海联运班列年度发运量首次突破100万标箱，较2017年开通初期增长 110倍；运输网络拓展至127个国家和地区的581个港口；货物种类已涵盖电子产品、整车及零部件、机 械、食品等数10个大类的1300余种产品。 自2017年西部陆海新通道铁海联运班列首次开行以来，铁海联运集装箱运量累计达255.9万标箱。 这是记者在12日举办的2025陆海新通道航商大会获悉的。西部陆海新通道以重庆为运营组织中心，各西 部省区市为关键节点，利用铁路、海运、公路等运输方式，向南经广西、云南等沿海沿边口岸通达世界 各地。 《西部陆海新通道总体规划》明确，到2025年，经济、高效、便捷、绿色、安全的西部陆海新通道 基本建成。目前，铁海联运集装箱运量累计达255.9万标箱，已达成总体规划明确的2025年"铁海联运集 装箱运量达到50万标箱"的目标。 今年1月至10月，重庆经西部陆海新通道货运量、货值达27.23万标箱、489.62亿元，分别同比增长 33%、27%。 ...

Core Insights - The eighth China International Import Expo showcased the potential of Latin American companies, particularly from Peru and Ecuador, in tapping into the Chinese market for fresh produce and flowers [2] - The opening of Qianhai Port, a key project under the Belt and Road Initiative between China and Peru, has significantly reduced shipping times and costs for Peruvian goods to China [2] Trade and Economic Impact - Qianhai Port's operational efficiency has decreased the shipping time from Peru to China from over 30 days to 23 days, resulting in a logistics cost reduction of over 20% [2] - In the first three quarters of this year, bilateral trade between China and Ecuador reached approximately $12.919 billion, marking a 26.2% increase compared to the same period in 2024 [2] - China's imports from Ecuador amounted to $7.293 billion, reflecting a year-on-year growth of 24% [2]

Macro - The monetary policy maintains a tone of "implementing a moderately loose monetary policy" and "keeping financial total growth reasonable" [3] - The third quarter report emphasizes the combination of "counter-cyclical and cross-cyclical adjustments," indicating a subtle shift in policy focus [3] - The central bank addresses concerns about "tightening monetary policy," "weak financing," and "ineffective interest rates," suggesting a broader focus beyond short-term counter-cyclical support [3] - The pressure to achieve annual economic targets is manageable, reducing the urgency for short-term monetary easing, with a focus on implementing previous policies and preparing for cross-cyclical adjustments [3] - There remains room for interest rate cuts next year if economic growth pressures increase, especially considering low inflation and historically high real interest rates [3] Strategy - The technology manufacturing sector continues to show high prosperity, while real estate and durable goods demand remain weak [5] - Global AI infrastructure investment is driving the prosperity of the electronic semiconductor and power facility sectors, with storage demand rebounding and battery sales significantly increasing [5] - Real estate construction demand is entering a low season, with a widening decline in housing sales and a marginal decrease in demand for construction resources [5] - Upstream resource prices are mixed, with international metal prices declining while coal prices surge due to heating demand [5] Downstream Consumption - Real estate sales have seen a significant decline of 41.4% year-on-year, with first, second, and third-tier cities experiencing drops of 45.2%, 38.2%, and 43.9% respectively [9] - Durable goods consumption, particularly passenger car retail, has decreased by 0.8% year-on-year in October, influenced by changes in subsidy policies [9] - Agricultural prices show a mixed trend, with live pig prices down 3.1% month-on-month, while domestic staple grain prices continue to rise [9] - Service consumption indicators, such as tourism and movie box office revenues, indicate a slight decline in activity [9] Technology & Manufacturing - The electronic industry continues to thrive, with explosive growth in storage demand driven by AI, and semiconductor sales increasing by 15% year-on-year in September [10] - Construction demand remains weak, with seasonal factors leading to a decline in building material demand [10] - The lithium battery industry is experiencing heightened prosperity, with significant price increases for lithium hexafluorophosphate [10] - Coal prices have reached new highs due to tightened supply and increased heating demand, while international metal prices have declined [10] Energy Storage - The introduction of a capacity pricing mechanism is expected to enhance the economic viability of energy storage across more provinces [15] - Inner Mongolia's compensation for energy storage discharge in 2026 is set at 0.28 yuan/kWh, which, despite being lower than the previous year's rate, will stimulate demand [16] - The bidding volume for energy storage in October 2025 shows significant year-on-year growth, indicating a robust market demand [16]