Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 2.50, reflecting a 19% increase from the previous target price [7][5]. Core Views - The company's performance in the first half of 2025 showed a significant decline in net profit, down 55.6% year-on-year to USD 25.6 million, primarily due to weak global dry bulk market demand and falling freight rates [1][2]. - The report anticipates a potential recovery in freight rates in the second half of 2025, driven by seasonal demand and macroeconomic factors such as the US interest rate cycle and China's economic recovery [1][4]. - The report suggests that the dry bulk market may have reached a low point in the first half of 2025, with expectations for improved profitability in 2026-2027 [5][4]. Summary by Sections Financial Performance - In the first half of 2025, the company's average daily freight rates for handy and super handy bulk carriers decreased by 6.8% and 10.7% year-on-year, respectively [2]. - The company's fleet operating days decreased by 7.4% for handy and 5.5% for super handy vessels due to the disposal of older ships [3]. - The report projects a decline in net profit for 2025, with estimates revised down by 53.0% to USD 70.58 million, while 2026 and 2027 profits are expected to improve [5][11]. Market Outlook - The report highlights that global dry bulk shipping volumes for iron ore, coal, and grain fell by 4%, 7%, and 13% year-on-year, respectively, in the first half of 2025 [2]. - It emphasizes the importance of monitoring the US interest rate cycle and China's domestic demand as key factors influencing global dry bulk demand and freight rates [4][5]. Valuation - The report adjusts the price-to-book (PB) valuation multiple to 0.9x for 2025, aligning with the company's historical average, and raises the target price to HKD 2.50 [5][8]. - The report indicates that the company's market valuation may benefit from improved liquidity in the Hong Kong stock market [5].

Core Insights - The Baltic Dry Index has surged to its highest level in over a year, driven by a strong increase in the Capesize vessel index [1] Group 1: Baltic Dry Index Performance - The Baltic Dry Index rose by 85 points, or 4.18%, to reach 2120 points, marking the highest level since July 2024 [1] - The Capesize vessel index increased by 278 points, or 9.1%, to 3339 points, achieving a five-week high [1] - Daily earnings for Capesize vessels rose by $2298, reaching $27688 [1] Group 2: Other Vessel Indices - The Panamax vessel index decreased by 4 points, or 0.2%, to 1905 points, with daily earnings dropping by $40 to $17142 [1] - The Supramax vessel index fell by 16 points to 1313 points [1] - The Handysize vessel index increased by 4 points, reaching 682 points [1]

Core Viewpoint - The Baltic Dry Index halted a seven-day upward trend, experiencing a decline due to falling rates for Capesize and Panamax vessels [1] Group 1: Baltic Dry Index Performance - The Baltic Dry Index decreased by 36 points, or 1.8%, closing at 2016 points [1] - The Capesize vessel rate index fell by 103 points, or 3.3%, to 2981 points [1] - Daily earnings for Capesize vessels dropped by $855, reaching $24,720 [1] Group 2: Panamax and Other Vessel Types - The Panamax vessel rate index decreased by 4 points, or 0.2%, to 1915 points [1] - Daily earnings for Panamax vessels fell by $40, amounting to $17,232 [1] - The Supramax vessel rate index remained unchanged at 1346 points, while the Handysize vessel rate index increased by 2 points to 675 points [1]

Core Insights - The Baltic Dry Index has reached a one-month high due to an increase in Capesize vessel freight rates [1] Freight Rate Summary - The Baltic Dry Index rose by 40 points, or 2.1%, to 1906 points, marking the highest level since June 17 [1] - The Capesize freight rate index increased by 109 points, or 4.3%, to 2642 points [1] - Daily earnings for Capesize vessels rose by $905 to $21,908 [1] - The Panamax freight rate index decreased by 23 points, or 1.2%, to 1967 points, ending a nine-day upward trend [1] - Daily earnings for Panamax vessels fell by $214 to $17,700 [1] - The Supramax freight rate index increased by 28 points, or 2.2%, to 1315 points [1]

Core Insights - The Baltic Dry Index continues to rise, indicating an increase in shipping rates across various vessel types [1] Group 1: Baltic Dry Index Performance - The Baltic Dry Index increased by 83 points, or 4.7%, reaching 1866 points, marking the highest level since June 18 [1] - The Capesize vessel index rose by 166 points, or 7%, to 2533 points, with daily earnings increasing by $1370 to $21003 [1] - The Panamax vessel index increased by 41 points, or 2.1%, to 1990 points, achieving a nine-day consecutive rise, with daily earnings up by $370 to $17914 [1] - The Supramax vessel index rose by 43 points, or 3.5%, to 1287 points [1]

Core Points - The Baltic Dry Index has fallen to a one-month low due to declining freight rates for Capesize and Panamax vessels [1] - The Baltic Dry Index decreased by 15 points or 1% to 1443 points, marking the lowest level since June 3 [1] - The Capesize vessel index dropped by 53 points or 2.6% to 1958 points, the lowest in over a month [1] - Daily earnings for Capesize vessels decreased by $435 to $16,242 [1] - The Panamax vessel index fell by 8 points or 0.5% to 1492 points [1] - Daily earnings for Panamax vessels declined by $74 to $13,424 [1] - The Supramax vessel index increased by 13 points to 1031 points [1]

Group 1 - The Baltic Dry Index experienced a slight decline due to decreased demand for Capesize vessels, dropping by 16 points or 1% to 1665 points, marking the lowest level since June 6 [1] - The Capesize vessel index fell by 93 points or 3.3% to 2724 points, the lowest since June 4, and has now declined for seven consecutive trading days [1] - Daily earnings for Capesize vessels decreased by $768 to $22,592 [1] Group 2 - The Panamax vessel index increased by 41 points or 3% to 1425 points, marking a rise for the third consecutive trading day [1] - Daily earnings for Panamax vessels rose by $370 to $12,825 [1] - The Supramax vessel index increased by 11 points or 1.1% to 994 points [1]

Core Points - The Baltic Dry Index has declined due to a drop in freight rates for large vessels [1] Group 1: Baltic Dry Index - The Baltic Dry Index fell by 23 points, or 1.16%, to 1952 points [1] - The Capesize vessel index decreased by 71 points, or 1.9%, to 3660 points [1] - Daily earnings for Capesize vessels dropped by $587 to $30,357 [1] Group 2: Other Vessel Types - The Panamax vessel index decreased by 4 points, or 0.3%, to 1406 points [1] - Daily earnings for Panamax vessels fell by $42 to $12,652 [1] - The Supramax vessel index increased by 6 points to 945 points, marking the highest level in nearly two weeks [1] - The Handysize vessel index rose by 7 points to 614 points [1]

Core Insights - The Baltic Dry Index has reached an eight-month high, indicating a positive trend in dry bulk shipping rates [1] Group 1: Index Performance - The Baltic Dry Index increased by 7 points, or 0.4%, to 1975 points, marking the highest level since October 2 of the previous year [1] - The Capesize vessel index rose by 9 points, or 0.2%, to 3731 points, the highest since July 2024 [1] - The Panamax vessel index also saw an increase of 9 points, or 0.6%, reaching 1410 points, the highest in over ten weeks [1] Group 2: Daily Earnings - Daily earnings for Capesize vessels increased by $78 to $30,944 [1] - Daily earnings for Panamax vessels rose by $84 to $12,694 [1] - The Supramax vessel index increased by 3 points to 939 points, the highest in nearly two weeks [1]

Core Insights - The Baltic Dry Index has reached a nearly seven-month high due to strong demand for large vessels [1] Group 1: Baltic Dry Index Performance - The Baltic Dry Index increased by 58 points, or 3.6%, to 1691 points, marking the highest level since November 18 of the previous year [1] - The Capesize vessel index rose by 168 points, or 5.9%, to 3010 points, also nearing a seven-month high [1] - Daily earnings for Capesize vessels surged by $1389 to $24961 [1] Group 2: Other Vessel Categories - The Panamax index increased by 18 points, or 1.5%, to 1264 points, reaching a two-week high [1] - Daily earnings for Panamax vessels rose by $168 to $11378 [1] - The Supramax index declined by 7 points to 926 points, the lowest since March 13 [1]