Core Viewpoint - Sinotrans Ltd. is expected to see a 6% year-on-year increase in net profit for 2Q25, reaching Rmb1.21 billion, primarily due to a one-time profit boost from warehouse REITs issuance [1] Financial Performance - The freight forwarding business is anticipated to face pressure in 2Q25 due to trade tariffs, with DHL-Sinotrans likely experiencing a further decline in profits due to the repeal of the "de minimis" exemption by the US [2][3] - The REITs issuance is projected to provide a one-time profit boost of approximately Rmb380 million [3] - Interim dividends are expected to remain stable at Rmb0.145 per share, with the potential for a 17% increase in full-year dividends if the company adopts a 50% payout ratio based on boosted profits from the disposal of Loscam equity [4] Market Trends - A series of tariff hikes between China and the US in April and the elimination of the "de minimis" exemption on May 2 are expected to impact the company's freight forwarding business [2] - The appreciation of the Euro against the RMB by approximately 7.2% in 2Q25 may exacerbate cost pressures for DHL-Sinotrans [3] Valuation and Ratings - The company maintains its earnings forecasts for 2025-2026, estimating net profits of Rmb3.56 billion and Rmb3.70 billion, reflecting year-on-year growth of -9.2% and +4.0% respectively [5] - A-shares and H-shares are currently trading at 11.0x and 8.1x 2025 P/E [5] - The target price for A-shares remains at Rmb5.80, implying a 2025 P/E of 11.9x and an upside of 8.2%, while H-shares maintain a target price of HK$4.75, implying a 2025 P/E of 9.1x and a 12.3% upside [6]