Report Investment Rating - No information provided on the industry investment rating Core Viewpoints - The ceasefire news has limited impact on the market, with recent large fluctuations. It is not recommended to increase positions further, and stop - loss orders should be set [2] - Amid geopolitical conflicts and tariff uncertainties, the game is difficult. It is advisable to participate with light positions or stay on the sidelines [5] - Attention should be paid to tariff policies, the Middle - East situation, and spot freight rates [5] Summary by Content Freight Index - On August 18, the Shanghai Export Container Settlement Freight Index (SCFIS) for the European route was 2180.17 points, down 2.5% from the previous period; for the US - West route, it was 1106.29 points, up 2.2% from the previous period [3] - On August 15, the Ningbo Export Container Freight Index (NCFI) (composite index) was 1052.5 points, down 0.1% from the previous period; the NCFI for the European route was 1188.7 points, down 5.5% from the previous period; for the US - West route, it was 1042.91 points, down 5.9% from the previous period [3] - On August 15, the Shanghai Export Container Freight Index (SCFI) announced a price of 1460.19 points, down 29.49 points from the previous period; the SCFI European route price was 1820 USD/TEU, down 7.2% from the previous period; the SCFI US - West route was 1759 USD/FEU, down 3.5% from the previous period [3] - On August 15, the China Export Container Freight Index (CCFI) (composite index) was 1193.34 points, down 0.6% from the previous period; the CCFI for the European route was 1790.47 points, down 0.5% from the previous period; for the US - West route, it was 981.1 points, down 5.9% from the previous period [3] Economic Data - In July, the eurozone's manufacturing PMI was 49.8, higher than the expected 49.7 and the previous value of 49.5. The service PMI was 51.2, exceeding the expected 50.7 and the previous value of 50.5. The composite PMI was 51, higher than the expected 50.8 and the previous value of 50.6. The SENTIX investor confidence index jumped to 4.5, significantly higher than 0.2 in June and the market - expected 1.1, reaching the highest level since April 2022 [3] - In July, China's manufacturing PMI was 49.3%, down 0.4 percentage points from the previous month, indicating a decline in manufacturing prosperity [4] - In July, the US S&P Global manufacturing PMI preliminary value was 49.5 (expected 52.7, previous value 52.9); the service PMI preliminary value was 55.2 (expected 53, previous value 52.9); the Markit composite PMI preliminary value was 54.6, the highest since December 2024, better than the expected 52.8 and the previous value of 52.9 [4] Market Conditions - The Sino - US tariff extension continues, with no substantial progress in negotiations. The tariff war has evolved into a trade negotiation issue between the US and other countries, and the spot price has slightly decreased [5] - On August 19, the closing price of the main contract 2510 was 1370.3, a decline of 0.80%, with a trading volume of 27,300 lots and an open interest of 52,800 lots, a decrease of 383 lots from the previous day [5] - Hamas released a ceasefire expectation, but Israel denied the information. Coupled with some liner companies continuously lowering freight rates, the market fluctuated widely [5] Strategy Recommendations Short - term Strategy - The main contract remains weak, while the far - month contracts are stronger. Risk - takers can try to lightly go long on the 2510 contract around 1300 and the 2512 contract around 1750. Pay attention to the subsequent market trend, do not hold losing positions, and set stop - loss orders [6] Arbitrage Strategy - Against the backdrop of international situation turmoil, each contract still follows the seasonal logic with large fluctuations. It is recommended to stay on the sidelines temporarily or try with light positions [6] Long - term Strategy - It is recommended to take profits when each contract rises, wait for the price to stabilize after a pull - back, and then determine the subsequent direction [6] Contract Adjustments - The daily limit for contracts from 2508 to 2606 is adjusted to 18% [6] - The company's margin for contracts from 2508 to 2606 is adjusted to 28% [6] - The daily opening limit for all contracts from 2508 to 2606 is 100 lots [6]

Core Viewpoint - Haifeng International reported strong financial performance for 1H25, with revenue increasing by 28.0% to $1.66 billion and net profit rising by 79.7% to $630 million, exceeding expectations of $600 million [1] Financial Performance - The company announced an interim dividend of HKD 1.3 per share, with a payout ratio of 72%, resulting in a current dividend yield of 4.8% [1] - Gross margin and net profit margin improved to 40.2% and 37.8%, respectively, reflecting increases of 9.3 and 10.9 percentage points year-on-year [1] - The average container shipping price for the company was $776 per TEU, up 22.8% year-on-year, while the shipping volume reached 1.83 million TEUs, a 7.3% increase [1] Market Dynamics - The supply of small and medium-sized container ships is tightening, leading to a significant increase in rental rates, with a 1-year lease for a 2,000 TEU vessel rising by 83.6% to $26,610 per day [2] - The demand for small and medium-sized vessels is driven by industry restructuring, red sea detours, and adjustments in shipping routes [2] - The supply growth for small and medium-sized ships is projected at 2.2% for 2025, while demand is expected to grow by 3.6%, indicating a favorable supply-demand balance in the Asian container market [2] Future Outlook - The company has raised its net profit forecast for 2025 by 7% to $1.17 billion and maintained profit forecasts for 2026 and 2027 [3] - The target price has been increased by 11% to HKD 31.0, based on a 9.2x PE ratio for 2025, reflecting a strong investment case [3] - The company maintains a 70% dividend payout assumption for 2025-2027, with current stock prices corresponding to dividend yields of 8.8%, 6.9%, and 8.3% for the respective years [3]

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 31.00 [6][7]. Core Views - The company reported a strong performance in 1H25, with revenue increasing by 28.0% year-on-year to USD 1.66 billion and net profit rising by 79.7% to USD 630 million, exceeding expectations [1][2]. - The increase in profitability is attributed to tariff disruptions and a significant rise in container shipping rates in Southeast Asia, with the average container shipping price increasing by 22.8% year-on-year [1][2]. - The company is expected to benefit from a tightening supply of small and medium-sized container ships, which enhances the resilience and growth potential of the Asian shipping market [1][3]. Summary by Sections Financial Performance - In 1H25, the company achieved a gross margin of 40.2% and a net profit margin of 37.8%, reflecting an increase of 9.3 and 10.9 percentage points year-on-year, respectively [2]. - The company’s container shipping volume reached 1.83 million TEUs, up 7.3% year-on-year, while the cost per container was USD 476, a 3.3% increase due to a rise in chartered vessels [2]. Market Dynamics - The supply of small and medium-sized container ships is tightening, with a 1-year average charter rate for 2,000 TEU vessels increasing by 83.6% to USD 26,610 per day [3]. - The demand for small ships is driven by industry restructuring and adjustments in shipping routes, which favor smaller vessels for regional market needs [3]. Industry Outlook - The company focuses on the Asian market, benefiting from trade growth in the region, with demand for small to medium-sized ships expected to outpace supply growth in the coming years [4]. - The net profit forecast for 2025 has been raised by 7% to USD 1.17 billion, with the target price adjusted upward by 11% to HKD 31.00, reflecting strong mid-term performance [4].

Core Insights - Company reported a revenue of approximately $1.664 billion for the six months ending June 30, 2025, representing a year-on-year increase of 27.99% [1] - Gross profit reached approximately $669 million, showing a significant year-on-year increase of 66.3% [1] - Gross margin improved from about 31% in the same period of 2024 to approximately 40.2% [1] - Shareholders' profit attributable to the company was around $630 million, reflecting a year-on-year increase of 79.65% [1] - Basic earnings per share were reported at $0.24 [1] - The company proposed an interim dividend of HKD 1.3 [1] Revenue Drivers - The increase in revenue was primarily driven by a year-on-year increase of approximately 7.3% in container throughput, totaling 1,829,665 TEUs [1] - Average freight rates (excluding swap space fee income) increased by approximately 22.8% to $776.4 per TEU [1]

Core Viewpoint - Haifeng International (01308.HK) reported a significant increase in mid-term performance for the first half of 2025, with revenue reaching approximately $1.6645 billion, reflecting a year-on-year growth of about 28.0% [1] Financial Performance - Revenue for the first half of 2025 was approximately $1.6645 billion, up about 28.0% year-on-year [1] - Gross profit was approximately $669.4 million, representing a year-on-year increase of about 66.3%, with gross margin rising from approximately 31.0% to about 40.2% [1] - Profit for the period was $633.4 million, marking a year-on-year increase of 79.5%, with basic earnings per share at $0.24 [1] - Interim dividend declared was HKD 1.30 per share [1] Operational Highlights - Container throughput increased from 1,705,164 TEUs for the six months ending June 30, 2024, to 1,829,665 TEUs for the six months ending June 30, 2025, reflecting an increase of approximately 7.3% [1] - Average freight rates (excluding slot exchange fee income) rose from $632.4 per TEU for the six months ending June 30, 2024, to $776.4 per TEU for the six months ending June 30, 2025, representing an increase of approximately 22.8% [1]

Group 1 - The total container throughput for July 2025 is projected to be 17.287 million TEU, representing a year-on-year decrease of 0.9% [1] - The cumulative container throughput for the year to date is 118.496 million TEU, showing a year-on-year increase of 4.7% [1] - The container throughput at domestic terminals in July is 13.647 million TEU, reflecting a year-on-year increase of 0.4% [1] Group 2 - The container throughput at overseas terminals in July is 3.231 million TEU, indicating a year-on-year decline of 3.9% [1] - The total bulk cargo throughput for July is 103 million tons, which is a year-on-year increase of 10.6% [1] - The cumulative bulk cargo throughput for the year to date is 734 million tons, showing a year-on-year increase of 0.7% [1]

Core Insights - Liaoport Group's port main business achieved growth in the first seven months of the year, with cargo throughput exceeding 270 million tons, an increase of nearly 5% [1] - Container throughput surpassed 6.8 million TEUs, with a growth rate of over 4% [1] - Strong growth was observed in container, oil products, and grain handling, while coal and roll-on/roll-off businesses stabilized, and steel and metal ore throughput showed significant improvement [1] Group 1 - In July, Liaoport Group's cargo throughput exceeded 40.8 million tons, with a growth rate of over 22% [1] - Container throughput in July surpassed 1 million TEUs, with a growth rate of 7% [1] - The company has established a high-quality logistics transportation channel for crude oil transfer to refining enterprises, securing stable long-term storage base cargo [1] Group 2 - Liaoport Group is building a port, shipping, and trade exchange platform to attract new sources of steel exports for steel companies, achieving breakthrough growth in cargo sources [1] - The trade mineral volume increased by 94% from January to July, with efforts to establish a large-scale trade mineral platform [1] - The company is actively promoting iron ore bonded crushing projects and enhancing its processing service capabilities [1] Group 3 - The first international navigation vessel bonded green methanol port storage and unloading and refueling business was launched in Dalian, marking the full connection of the Northeast Asia green ship fuel supply chain [2] - Yingkou Container Terminal has been approved for hazardous cargo operation qualifications, injecting new momentum into the domestic container transportation of new energy vehicles [2]

Group 1: Report Industry Investment Rating - No specific industry investment rating is provided in the reports [1][2][3] Group 2: Core Views - The Middle East situation may deteriorate, causing strong fluctuations in the market. It is recommended to participate with light positions or stay on the sidelines due to high game - playing difficulty amidst geopolitical conflicts and tariff turmoil [1][3] - In the short - term, the market may rebound. Risk - takers are advised to take light positions in specific contracts, and partial profit - taking and stop - loss settings are recommended. For the long - term, it is advised to take profits when prices rise and wait for a pullback to stabilize [3] - Amidst the volatile international situation, the market shows a positive spread structure with large fluctuations. It is recommended to stay on the sidelines or try with light positions for arbitrage strategies [3] Group 3: Summary Based on Related Contents Shipping Indexes - On August 4, the Shanghai Export Container Settlement Freight Index (SCFIS) for the European route was 2297.86 points, down 0.8% from the previous period; for the US - West route, it was 1130.12 points, down 12.0%. On August 8, the Ningbo Export Container Freight Index (NCFI) composite index was 1053.86 points, down 3.11% from the previous period; the European route was 1257.71 points, down 8.37%; the US - West route was 1042.91 points, down 6.42% [1] - On August 8, the Shanghai Export Container Freight Index (SCFI) was 1489.68 points, down 61.06 points from the previous period. The SCFI price for the European route was 1961 USD/TEU, down 4.39%; for the US - West route, it was 1823 USD/FEU, down 9.80%. The China Export Container Freight Index (CCFI) composite index was 1200.73 points, down 2.6%; the European route was 1799.05 points, up 0.5%; the US - West route was 827.84 points, down 5.6% [1] Manufacturing and Service PMIs - In July, the eurozone's manufacturing PMI preliminary value was 49.8, higher than the expected 49.7; the service PMI preliminary value was 51.2, higher than the expected 50.7; the composite PMI preliminary value was 51, higher than the expected 50.8. The eurozone's SENTIX investor confidence index in July jumped to 4.5, the highest since April 2022 [1] - In July, China's manufacturing PMI was 49.3%, down 0.4 percentage points from the previous month. The US's July S&P Global manufacturing PMI preliminary value was 49.5, lower than the expected 52.7; the service PMI preliminary value was 55.2, higher than the expected 53; the composite PMI preliminary value was 54.6, a new high since December 2024 [2] Market and Contract Information - On August 8, the main contract 2510 closed at 1436.0, down 1.34%, with a trading volume of 5.64 million lots and an open interest of 5.66 million lots, an increase of 3006 lots from the previous day [3] - The Trump administration postponed the tariff negotiation date to August 1, and the spot market price range has been set with a small price increase to test the market, leading to a small rebound in the market [3] - The Middle East situation may worsen, and the detour situation cannot be restored in the near term. Maersk raised its full - year profit, making the market sentiment optimistic and the market oscillating strongly [3] Geopolitical Events - On August 10, Israeli Prime Minister Netanyahu said that the Israeli army's next - stage military operations will focus on two locations still controlled by Hamas, and the Israeli army has controlled about 70% - 75% of the Gaza Strip [3][4] - On August 8, the Israeli government's security cabinet passed the so - called "five principles to end the war", including disarming Hamas and other contents [4]

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [3][5][15]. Core Views - The company has successfully navigated through 30 years of the container shipping cycle, establishing itself as a leading player in the Asian regional container shipping market. The supply-demand balance in the region is tight, and freight rates are expected to remain stable. The company has built a differentiated competitive advantage and provides robust shareholder returns, with cumulative dividends of HKD 38.9 billion from 2010 to 2024, averaging a payout ratio of 78% [3][10][15]. Summary by Sections Company Overview - The company, established in 1991, has become a leading shipping logistics enterprise in Asia, focusing on container transportation, international freight forwarding, and integrated logistics services. It operates a high-density service network covering 81 major ports across 17 countries and regions, with a fleet of 114 container ships, of which 100 are owned [10][20][24]. Industry Supply and Demand - The demand for container shipping in Asia is supported by high trade volumes among developed economies and the growing trade between China and ASEAN countries. The container trade volume between China and ASEAN is expected to grow by 8.2% year-on-year in the first half of 2025, with container volumes from China to Southeast Asia increasing by 19.7% [32][33][40]. On the supply side, the feeder vessel fleet is experiencing limited growth, which may lead to supply constraints [49][63]. Competitive Advantages - The company's management team has an average of over 28 years of experience in the shipping industry, enabling it to navigate through various cycles effectively. The company focuses on providing differentiated services through a comprehensive logistics network and has a strong operational efficiency, with a low cost per container of USD 463, down 8.4% year-on-year [10][67][72]. Financial Forecast and Investment Recommendations - The company is projected to achieve revenues of USD 3.285 billion, USD 3.353 billion, and USD 3.406 billion from 2025 to 2027, with year-on-year growth rates of 7.4%, 2.1%, and 1.6%, respectively. The net profit attributable to shareholders is expected to be USD 1.122 billion, USD 1.072 billion, and USD 1.011 billion during the same period [15][50]. Given its competitive advantages and stable shareholder returns, the report maintains an "Accumulate" rating [3][15].

Production Side - As of the fourth week of July, the blast furnace operating rate was 83.48%, stable compared to the previous period and above last year's average[19] - The rebar operating rate increased to 43.95%, up 2.38 percentage points from the previous period, exceeding last year's average[19] - The cement mill operating rate recorded 36.95%, a slight decrease compared to the previous period[19] - The asphalt inventory saw a significant decline, indicating an acceleration in physical work volume in the infrastructure sector[7] Demand Side - In July, the real estate market remained weak, with the transaction area of commercial housing in 30 cities down by 27.43% month-on-month and 11.26% year-on-year[7] - The average daily sales of passenger cars were 53,006.50 units, reflecting a month-on-month decrease of 21.88%[8] - The total box office revenue for movies was 84,200.00 million yuan, showing a month-on-month increase of 99.53% but a year-on-year decline of 14.85%[8] Trade and Prices - The CCFI (China Containerized Freight Index) rose to 1,305.40, with a month-on-month growth of 2.19%[9] - The SCFI (Shanghai Containerized Freight Index) decreased to 1,684.07, reflecting a month-on-month decline of 16.42%[9] - The CPI showed a mild increase in consumer prices, while industrial product prices fluctuated, with PPI pressures from weak energy prices[9]