The Zhitong Finance App learned that Daiwa released a research report stating that it reiterated the “buy” rating of Haifeng International (01308). Although the industry's freight rates are under pressure, it is believed that its profitability will be higher than pre-epidemic levels. Since replacing old ships can improve energy efficiency, the target price was reduced by 12% from HK$25 to HK$22. The company's total revenue and adjusted net profit last year increased 37%/57% year-on-year respectively to US$41.1/1.82 billion, in line with market expectations. However, the final dividend payout is 1.6 yuan per share, in line with the bank's annual dividend ratio of 70%.

The bank pointed out that group management is cautious about global economic growth and increased ship supply in the next 2 to 3 years, but believes that compared with other regions, Southeast Asia is in a more favorable position. In the short term, Southeast Asia freight rates may slowly pick up, thanks to inventory replenishment, exchange rate stability, and route cancellations. According to management, in terms of contracts, although clients' bargaining power has improved, the latest contract renewal rate is still higher than pre-epidemic levels. The group entered the Indian market at the end of last year, but due to uncertainty in global trade demand, the bank estimates that the group will take a cautious approach in this new market. The bank believes that the group may seek expansion opportunities in a weak market while maintaining a 70% dividend ratio and may also distribute special interest.