Core Viewpoint - Daiwa's report indicates that Pacific Basin Shipping (02343) experienced a 50% year-on-year decline in basic profit for the first half of the year, amounting to $22 million, which aligns with their expectations. Despite a slow recovery, improvements in the dry bulk market are noted [1][2] Group 1: Financial Performance - The basic profit for Pacific Basin Shipping in the first half of the year fell to $22 million, a 50% decrease compared to the previous year, meeting Daiwa's expectations [1] - Daiwa has raised the target price for the stock from HKD 2.25 to HKD 2.65 and increased the earnings per share forecast for 2025 to 2027 by 10% to 36% [1] Group 2: Market Outlook - Daiwa expresses optimism regarding the dry bulk market, suggesting it is at the bottom of a recovery phase, albeit slowly. They anticipate that earnings for Pacific Basin Shipping will return to positive growth in 2026 based on a low base in 2025 [2] - For the second half of 2025, Pacific Basin Shipping has secured time charter equivalent (TCE) rates for Handysize and Supramax vessels at $11,680 and $13,480 per day, covering 60% and 74% of operational days, respectively [1] - Despite a projected year-on-year decline in earnings for the second half of 2025, Daiwa highlights the potential for profit expansion compared to the first half, supported by robust cash flow generation and disciplined capital expenditure [2]