SITC (01308) jumped over 7% following its earnings announcement, reaching a new high of HK$28.76. As of press time, the stock was up 6.78% at HK$28.66, with trading volume of HK$48.49 million.

On the news front, SITC announced its first-half results, reporting revenue of approximately $1.6645 billion, up 28.0% year-over-year; gross profit of about $669.4 million, up 66.3% year-over-year, with gross margin rising from 31.0% to 40.2%; net profit of $633.4 million, up 79.5% year-over-year; and basic earnings per share of $0.24. The revenue growth was mainly attributed to a 7.3% increase in container volume and a 22.8% rise in average freight rates.

CICC released a research report stating that SITC's first-half performance slightly exceeded the firm's expectations, primarily because the company achieved freight rates that were better than previously anticipated. The firm noted that in the second quarter, the company's cargo volume maintained rapid growth while freight rates remained at high levels, with gross margin and net margin showing significant year-over-year improvement in the first half. The company's interim dividend payout ratio was approximately 70%, making its dividend attractive. The supply tightness trend continues in the sub-3,000 TEU small vessel market where the company operates. Benefiting from economic growth in Southeast Asian countries and ongoing industrial transfer within the Asian region, the firm believes the company's demand outlook remains positive.