Group 1 - The Ministry of Transport announced a special port service fee for various types of vessels involved with the U.S., which may allow the company to gain more market share due to its efficient local operations compared to overseas competitors [1] - The shipping service business showed resilience despite a decline in market rates, with the Baltic Dry Index (BDI) and the Clean Tanker Index (BCTI) dropping by 30% and 32% year-on-year, respectively. The company's shipping revenue decreased by 23% to $80 million, with chartered vessel revenue down 26% to $30 million and controlled vessel revenue down 21% to $50 million [1] - The gross margin for chartered vessels increased by 2.4 percentage points to 4.1%, while the gross margin for controlled vessels decreased by 19.6 percentage points to 28.3%, indicating that the company's performance decline was less severe than the market rate drop [1] Group 2 - The company expanded its fleet size and improved the age structure of its vessels, controlling 38 vessels with a total capacity of 1.48 million deadweight tons, a 2.1% increase year-on-year. The average age of the fleet decreased from 6 years in 2024 to 5 years [2] - The bulk shipping market is expected to improve, with the BDI index showing a 5% year-on-year increase in Q3 2025, and the company is likely to benefit from this trend as bulk carriers constitute the largest portion of its fleet [2] Group 3 - The company's performance met expectations, with a revised average price growth forecast of 0% for 2025. The projected net profits for 2025-2027 are $47 million, $60 million, and $74 million, respectively, with a corresponding PE ratio of 6, 5, and 4 [3] - The company's PE ratio of 4.55 is significantly lower than the median and average PE ratios of comparable companies in the shipping and port industry, indicating over 20% upside potential [3]

Core Viewpoint - The report from Zhongtai Securities projects Intercontinental Shipping's revenue and net profit growth from 2025 to 2027, highlighting a dual strategy of asset-light and asset-heavy operations to drive growth in shipping services and ship management [1][4]. Group 1: Shipping Services - The company is a comprehensive shipping service provider and a leading ship management service provider based in China, employing a dual strategy of asset-light and asset-heavy operations [1]. - The fleet structure is continuously optimized, with a controlled fleet of 38 vessels as of June 30, 2025, including 26 bulk carriers, 2 general cargo ships, and 10 tankers/chemical carriers, achieving a total capacity of 1.48 million dwt [2]. - The company has established partnerships with 1,355 suppliers globally, enhancing its operational capabilities [2]. Group 2: Ship Management - Intercontinental Shipping has been recognized as one of the top ten ship management companies globally, reinforcing its industry-leading position [3]. - The company employs a dual charging model combining a lump-sum and management fee, ensuring strong business sustainability and high customer retention [3]. - As of the end of 2024, the company managed 288 vessels, reflecting a year-on-year growth of 24.14% [3]. Group 3: Catalysts for Growth - The new IMO carbon emission regulations are expected to enhance the competitive advantage of shipping services, pushing the industry towards greener practices [4]. - The company has significantly reduced its greenhouse gas emissions per unit of total assets from 1.381 tCO2/thousand USD in 2020 to 0.556 tCO2/thousand USD by 2024 [4]. - The "National Ship, National Management" initiative is anticipated to strengthen the company's leading position in the ship management industry, enhancing compliance and operational capabilities for domestic shipping enterprises [5].