Summary of China National Freight Forwarding Conference Call Company Overview - **Company**: China National Freight Forwarding (中国外运) - **Industry**: Freight forwarding and logistics Key Financial Performance - **2024 Revenue**: 105.6 billion CNY, a year-on-year increase of 3.8% [2][4] - **Net Profit**: 3.9 billion CNY, a year-on-year decrease of 7% [2][4] - **Net Profit (Excluding Non-recurring Items)**: 3.16 billion CNY, a year-on-year decrease of 8.5% [2][4] - **Earnings Per Share**: 0.54 CNY [2][4] - **Return on Equity (ROE)**: 10% [2][4] - **Operating Cash Flow**: 4.1 billion CNY [2][4] - **Q1 2025 Revenue**: 23.7 billion CNY, a year-on-year decrease of 2% [2][6] - **Q1 2025 Net Profit**: 645 million CNY, a year-on-year decrease of 10% [2][6] Business Segments Performance - **Freight Forwarding**: Major revenue source with 67.1 billion CNY in 2024, a year-on-year increase of 8%, contributing 64% to gross profit [2][7] - **Specialized Logistics**: Revenue of 27.9 billion CNY, a year-on-year increase of 1.6%, but gross profit contribution decreased by 16%, accounting for 38% [2][7] - **E-commerce Logistics**: Revenue of 10.5 billion CNY, but negative gross profit contribution due to price pressure from downstream e-commerce giants [2][7] Market Position - **Global Rankings**: - Second in global sea freight forwarding, first in Asia [2][8] - Fifth in global air freight forwarding, first in Asia [2][8] - **Competitive Strength**: Strong position in the international freight forwarding market [2][8] Strategic Initiatives - **Business Transformation**: Focus on market demand-driven strategies and development of direct customer service models to enhance gross profit [2][5][9] - **Share Buyback and Dividend Policy**: Implemented to boost investor confidence [2][10] - **2024 Dividend**: 2.1 billion CNY distributed, with a per-share dividend of 0.29 CNY, representing 54% of net profit and a dividend yield of approximately 5.5% [2][11] Risks and Challenges - **Geopolitical Risks**: Potential impacts from geopolitical tensions [2][12] - **Overseas Operational Risks**: Challenges associated with international operations [2][12] - **Market Volatility**: Risks from rapid market changes affecting competition [2][12] Additional Considerations - **Investor Focus**: Attention needed on the effectiveness of the direct customer model and potential adjustments in e-commerce logistics strategy to improve profitability [2][5][7]

Group 1 - The core viewpoint of the report is that Singapore Post's rating has been upgraded from "Hold" to "Buy" based on valuation reasons, with a slight adjustment of the fair value target from SGD 0.605 to SGD 0.590 [1] - Singapore Post has made progress in divesting non-core assets, including the sale of its freight forwarding business for SGD 177.9 million, which is expected to generate approximately SGD 10.5 million in disposal gains and release around SGD 104 million in cash [1] - The next step in asset monetization may involve sale-and-leaseback transactions of its post office network, with a potential deal for 10 post offices valued at SGD 50 million [1] Group 2 - Singapore Post is transitioning from a traditional postal service provider to a global logistics company, with potential catalysts for the future including value-accretive acquisitions in the region and feasible structural solutions for the sustainability of its domestic postal business [2] - The possibility of injecting real estate assets into a Real Estate Investment Trust (REIT) is also considered a potential growth avenue for the company [2]