Glonghui, March 8 | Yamato released a report stating that Haifeng International's revenue last year fell 41% year-on-year to US$2.42 billion, while adjusted profit fell 72% to US$510 million, falling short of expectations. In the second half of last year, the company's revenue fell 7% from the first half of the year, mainly due to weak freight rates due to slowing demand, although partially offset by increased volume; gross margin fell 1.8 percentage points to 24.7% from the first half of the year, which was lower than the forecast, causing gross margin to drop 22.5 percentage points to 25.7% year-on-year last year. The company announced a final interest rate of 6.39 cents per share, accounting for 76% of its profit. The dividend payout ratio remained at 70% last year. The bank mentioned that Haifeng International's management is expected to benefit from good growth during the Lunar New Year holiday period. Freight volume will grow strongly in the first quarter of this year, continuing the recovery in freight volume in the fourth quarter of last year, but visibility is still low in the long run. The company believes that business development in the Indian market is positive, and plans to increase investment in the region. The company's net cash reached US$247 million last year, and there are no plans to order new ships. With the expected positive free cash flow and positive management tone, the bank is likely to pay special interest this year. It is estimated that this year's dividend rate will reach about 10%. Furthermore, the bank lowered Haifeng International's earnings forecast per share for this year and next two years by 12% to 14%. Also, due to improved gross margin, it is estimated that the company's freight and freight volume will increase by year to reach the number of units this year. The bank lowered the company's target price from HK$16 to HK$14.5, reaffirming the “buy” rating.