SITC (01308) surged nearly 5%, reaching a new high of HK$30.48. As of press time, the stock was up 4.54% to HK$30.42, with turnover of HK$53.54 million.

SITC announced its first-half results, reporting revenue of approximately US$1.6645 billion, up 28.0% year-over-year. Gross profit reached approximately US$669.4 million, surging 66.3% year-over-year, with gross margin rising from 31.0% to 40.2%. Profit totaled US$633.4 million, jumping 79.5% year-over-year, while basic earnings per share stood at US$0.24. The revenue growth was primarily attributed to a 7.3% increase in container volume and a 22.8% rise in average freight rates.

Securities analysts noted that during the first half, intra-Asian regional demand remained robust while supply was constrained, leading to significant year-over-year freight rate increases. The company benefited from both volume and price growth. Although increased chartered vessel numbers led to higher rental costs, effective cost control in cargo transportation and voyage expenses kept unit costs relatively stable, resulting in strong earnings growth.

The company proposed an interim dividend of US$0.17 per share, representing an interim dividend payout ratio of 71% and an annualized dividend yield of 9.7%.

Looking ahead, the current issue of aging feeder vessels in extended service remains severe, with the order book ratio still at low levels, creating long-term supply constraints. If the proposed measures under the US Section 301 tariffs are formally implemented in October, the fee exemption for feeder vessels under 4,000 TEU would reinforce the supply shortage logic for feeder vessels.