Investment Rating - The report maintains an "Accumulate" rating for Tangshan Port [3] Core Views - The company's Q2 performance showed significant improvement compared to Q1, with a notable recovery in coal cargo volume [1][7] - The company is focusing on its core business of bulk cargo handling and storage, leveraging its strategic location in the Jing-Tang port area [7] Financial Performance Summary - For H1 2025, Tangshan Port reported total revenue of 2.59 billion yuan, a year-on-year decrease of 12.9%, and a net profit attributable to shareholders of 890 million yuan, down 19.8% [1] - In Q2 2025, revenue was 1.36 billion yuan, a year-on-year decline of 9.2%, while net profit was 500 million yuan, down 10.5%, showing a significant narrowing of the decline compared to Q1 [1] - The company's total cargo throughput for H1 2025 was 120 million tons, remaining stable compared to the previous year, with coal throughput increasing by 10.1% to 30 million tons [7] Financial Data and Valuation - Revenue projections for the upcoming years are as follows: 2025E at 5.689 billion yuan, 2026E at 5.723 billion yuan, and 2027E at 5.819 billion yuan, with expected year-on-year growth rates of -1%, 1%, and 2% respectively [2][13] - The estimated net profit for 2025 is 1.901 billion yuan, with a projected PE ratio of 12.3x and a PB ratio of 1.1x [7][13] Shareholder Information - The major shareholder, Tangshan Port Industrial Group Co., Ltd., holds a 44.88% stake in the company [3] Market Performance - The current share price is 3.96 yuan, with a total market capitalization of 2.35 billion yuan [3]

Core Viewpoint - Tangshan Port reported a slight decline in revenue for 2024, but managed to achieve a year-on-year increase in net profit, indicating stable operational performance despite challenges in certain cargo segments [1][2]. Financial Performance - In 2024, the company achieved operating revenue of 5.72 billion yuan, a decrease of 2.1% year-on-year, while net profit attributable to shareholders reached 1.98 billion yuan, an increase of 2.8% [1]. - For Q4 2024, operating revenue was 1.44 billion yuan, up 3.3% year-on-year, with net profit of 400 million yuan, reflecting a significant increase of 27.7% [1]. Cargo Throughput - The total cargo throughput for 2024 was 230 million tons, remaining stable year-on-year, with specific performance in various segments: iron ore at 120 million tons (+12%), coal at 60 million tons (-14%), steel at 17 million tons (-7%), sand and gravel at 15 million tons (-24%), and other goods at 18 million tons (+23%) [2]. - In Q4 2024, throughput was 60 million tons, a 3% increase year-on-year, with notable changes in segment performance: iron ore at 30 million tons (-6%), coal at 20 million tons (+11%), steel at 3 million tons (-25%), and other goods at 10 million tons (+34%) [2]. Cost and Profitability - The company's operating costs for 2024 were 3.05 billion yuan, a decrease of 3.9% year-on-year, leading to a gross margin of 46.7%, an increase of 1 percentage point [3]. - Segment-wise, the gross margin for bulk cargo was 48% (+0.7 percentage points), for commodity sales was 17.1% (+5.3 percentage points), while logistics and other businesses saw a decrease in gross margin to 37.4% (-13.5 percentage points) [3]. Investment Income - Investment income for 2024 was 510 million yuan, a slight increase of 0.6% year-on-year, driven by gains from long-term equity investments and dividend income from a subsidiary [3]. - In Q4, investment income reached 120 million yuan, reflecting a year-on-year growth of 10.3% [3]. Strategic Focus - The company continues to divest non-core businesses, focusing on its main operations in bulk cargo handling, which enhances its operational stability [4]. - The company maintains a stable dividend policy, proposing a dividend of 0.2 yuan per share for 2024, with projected net profits for 2025-2027 estimated at 1.86 billion yuan, 1.94 billion yuan, and 2.03 billion yuan respectively [4].