According to the Futu Securities App, Singamas Cont (00716) rose more than 6%, as of press time, up 5.06%, at HKD 0.83, with a turnover of HKD 12.7633 million.

Soochow Securities pointed out that the inventory cycle between China and the United States has stabilized, and the demand for replenishing inventory is expected to gradually emerge. Container production volume and export prices have risen year-on-year. With the global trade reconstruction, container inventory has been dispersed around the world, and the demand for shipping container manufacturers has increased due to the long-term trend of the Red Sea incident. The gross margin of container manufacturing is greatly affected by scale effects and raw material prices, with steel accounting for about 50% of the cost of container manufacturing. Under the trend of low and volatile steel prices, the box price is expected to rise month-on-month, and the manufacturer's profit margin under the scale effect is expected to be further restored.

Singamas Cont's annual results announced earlier showed that it achieved a turnover of USD 382 million in 2023, a decrease of 50.74% year-on-year. The company's shareholders should have a surplus of USD 19.438 million, a decrease of 58.05% year-on-year. The announcement stated that the decline in turnover and average selling price was due to the oversupply of shipping containers in 2021, which led to a decline in dry container demand, coupled with the aforementioned global trade weakness, directly affecting the gross margin.