Highton Development(SH:603162)2024-08-02 07:34Company Overview - Fujian Haitong Development Co., Ltd. was established in March 2009 and is a leading private dry bulk shipping company in China, operating over 300 ports in more than 80 countries and regions, providing maritime transport services for various goods such as ores, coal, and fertilizers [1]. Fleet Composition - The company has built a fleet primarily consisting of 51,000 and 57,000 deadweight tonnage (DWT) ultra-flexible dry bulk carriers. As of June 30, 2024, the company had taken delivery of 8 out of 10 newly purchased vessels, with a total controlled capacity of 3.39 million DWT, ranking among the top in the domestic dry bulk transportation sector [2]. Financial Performance - For the first half of 2024, the company reported a revenue of ¥1,686,686,473.83, a year-on-year increase of 129.03%. The net profit attributable to shareholders was ¥242,253,575.77, up by 81.21% [2]. - The coastal transportation business saw a cargo volume of 18.09 million tons, reflecting a growth of 50.89% year-on-year. The average Time Charter Equivalent (TCE) for international ocean transport was $16,024 per day, exceeding market levels [2]. Market Dynamics - The Baltic Sea Index (BSI) for ultra-flexible vessels increased by 33.64% year-on-year, indicating a recovery in the global shipping market. The company has adapted to market changes by expanding its controlled capacity and optimizing its global route layout [2][3]. Strategic Initiatives - The company plans to continue purchasing vessels in the second half of 2024, aiming to enhance its competitive edge in the dry bulk shipping market. The management emphasizes the importance of seizing opportunities during industry downturns [4]. - To reduce carbon emissions, the company is implementing measures such as improving energy efficiency, retrofitting vessels for energy savings, and optimizing operational management to select the best routes and speeds [4]. Future Outlook - The supply-demand situation in the dry bulk market is tightening, with the order-to-capacity ratio at 9.49% as of June 2024, indicating a historically low level. The company anticipates a gradual recovery in trade volume due to geopolitical factors and economic recovery [3][4].