【Huachuang Transportation | Earnings Commentary】Xiamen Port Services: Overall Performance Stable in 2025, Focus on Major Asset Restructuring Progress

(Source: Huachuang Securities)

According to the “Securities and Futures Investors Suitability Management Measures” and supporting guidelines, this material is only intended for professional investors who are financial institutions among Huachuang Securities clients. Please do not forward this material in any form. If you are not a professional investor who is a financial institution among Huachuang Securities clients, please do not subscribe to, receive, or use the information in this material. This material is difficult to set access permissions for; if it causes you inconvenience, we apologize. Thank you for your understanding and cooperation.

Xiamen Port Authority Announcement 2025 Annual Report:

1. In 2025, the company achieved operating revenue of 22.128 billion yuan, a decrease of 0.08% year-on-year; net profit attributable to shareholders of the parent company was 206 million yuan, up 3.02%; net profit after deducting non-recurring gains and losses was 154 million yuan, up 661.57%.

2. By quarter: In Q1, Q2, Q3, and Q4 of 2025, the company achieved operating revenues of 4.328 billion, 6.214 billion, 6.07 billion, and 5.516 billion yuan, respectively, with year-on-year changes of -31.65%, +3.05%, +7.81%, and +32.79%; net profits attributable to shareholders were 63 million, 78 million, 55 million, and 10 million yuan, respectively, with year-on-year changes of -18.46%, +51.29%, -10.26%, and +1.26%; net profits after deducting non-recurring gains and losses were 61 million, 53 million, 44 million, and -3 million yuan, respectively, with year-on-year changes of +171.1%, +80.46%, +119.65%, and +93.22%.

3. By business segment: Wharf loading and storage achieved operating revenue of 922 million yuan, down 6.38% year-on-year, accounting for 4.16%; port supporting services achieved operating revenue of 1.269 billion yuan, up 0.65%, accounting for 5.74%; integrated supply chain business achieved operating revenue of 19.868 billion yuan, up 0.11%, accounting for 89.79%.

Main business operations remain stable, with emerging formats showing high growth potential.

In 2025, the company handled a cargo throughput of 41.031 million tons, an increase of 7.14% year-on-year, mainly driven by growth in loading and unloading demand for wood chips, sand and gravel, iron ore within Xiamen Port, and sand, cement outside Xiamen Port, demonstrating the resilience of the port’s core business. Additionally, the company actively expanded port supporting services, with sea-rail intermodal volume increasing by 19.2% year-on-year; benefiting from its unique geographical advantages, cross-strait express cargo volume increased by 35.2%; cross-border e-commerce operation tickets surged by 78.2%, further enhancing the company’s comprehensive service capabilities.

Significant breakthroughs in capital operations are expected to substantially improve profitability.

The company’s issuance of shares and cash payment to acquire a 70% stake in Xiamen Container Terminal Group and the related fundraising have received registration approval from the China Securities Regulatory Commission, and the equity transfer has been completed recently. This will promote integrated development of container terminals, bulk cargo terminals, port logistics, and supply chain resources, strengthening the company’s core business. The container terminal group has strong profitability; this transaction will help optimize the company’s profitability. According to the “Preliminary Review Report,” without considering the fundraising, after this acquisition of container assets, the company’s asset size and profitability will increase. Based on financial data from 2024 and January-August 2025, after the transaction, the company’s total assets may double, net profit may grow by over 200%, net profit attributable to shareholders could increase from 200 million yuan to 600 million yuan, nearly tripling. Furthermore, the company is taking measures to implement the “Quality and Return Double Improvement” action plan, aiming to further increase cash dividends after asset restructuring.

Investment Recommendations:

We reaffirm our previous view: As the only port listed platform of Fujian Port Group, the company mainly engages in loading and storage of bulk cargo, port supporting services, and integrated supply chain business. Shareholders support the injection of high-quality container assets, which may enhance the company’s profitability and dividend attributes. Its prominent geographical location on the Taiwan Strait will benefit from cross-strait integration and development, maintaining a “Buy” rating.

Risk Warning: M&A integration progress below expectations; significant economic downturn; noticeable fluctuations in inland economic conditions.

Legal Disclaimer:

This material is based on research reports published by Huachuang Securities Research Institute. If there are any ambiguities in the excerpted content, the full report as of the release date shall prevail. Please note that this material only reflects the judgment on the date of publication; related analysis opinions and speculations may be changed without notice based on subsequent research reports from Huachuang Securities Research Institute. Other business units or affiliates of Huachuang Securities may make independent investment decisions that differ from the opinions or suggestions in this material. The prices, values, and income of securities or financial instruments mentioned herein may rise or fall; past performance is not indicative of future results or guarantees. This material is for subscriber reference only and should not be considered an offer or invitation to buy, sell, or subscribe to securities or other financial instruments. Subscribers should not rely solely on this information to make independent judgments; they should make their own investment decisions and bear the investment risks themselves. Huachuang Securities is not responsible for any direct or indirect losses or other damages related to the use of the information in this material.