GLONGHUI, August 17 | According to a research report published by Daiwa, Haifeng International's revenue in the first half of the year fell 44% to US$1.25 billion. Average freight costs and cargo volume fell 44% and 3.8%, respectively, but revenue levels were still far higher than pre-pandemic levels. Adjusted earnings for the period fell 73% year-on-year to US$310 million, lower than expected. The Group announced an interim interest rate of $0.0766, with a payout ratio of 65%. The bank believes that the group's inventory removal campaign is nearing its end, ports in Asia are becoming increasingly congested, and supply disruptions may be an additional positive factor in freight rate recovery in the second half of the year. The bank estimates that the group's capital expenditure next year will be between 150 million and 200 million US dollars. Since there are no ship purchase plans and the current leverage ratio is low, the bank group may pay a special dividend in the second half of the year. The bank lowered the Group's earnings per share measurement from 2023 to 25 by 14 to 18% to reflect that earnings for the first half of the year were lower than expected. It also believed that the sharp decline in its stock price was mainly due to the failure to meet profit standards in the first half of the year, but the stock price did not reflect recent market improvements. The bank reiterated the Group's “buy” rating and lowered the target price from HK$20 to HK$18.