According to the Zhitong Finance APP, Singamas Container (00716) rose nearly 5% in early trading, as of press time, rose 3.66%, to HKD 0.85 per share, with a turnover of HKD 1.5368 million.

On the news front, Singamas Container announced that its wholly-owned subsidiary has signed the first and second financing lease agreements with the Mediterranean Shipping Company. Under the first and second financing lease agreements, the customer has agreed to lease 10,000 and 15,000 containers, respectively, for a period of 14 years. The customer has the right to buy out the products at the end of the lease term.

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.