Sinotrans (00598) climbed more than 6% in Tuesday afternoon trading, last up 6.1% at HK$4.78 with turnover reaching HK$20.4 million.

The logistics giant recently unveiled its 2026 interim results, posting revenue of approximately RMB45.45 billion, down 8.06% year-on-year. Net profit attributable to shareholders came in at around RMB1.73 billion, a decline of 11.4%, while non-GAAP net profit reached approximately RMB1.64 billion, representing a solid 17.33% year-on-year increase. Basic earnings per share stood at RMB0.2404, with an interim cash dividend of RMB0.14 per share (pre-tax).

According to the company's statement, the growth in non-GAAP profit was primarily driven by deepening engagement with key industry clients, providing customized solutions tailored to their supply chain needs, extending service value chains, and strengthening cost controls, which together drove substantial profit growth across all major business segments.

Analysts at CICC noted that in the first half of 2026, Sinotrans' agency business revenue edged up 1% year-on-year to RMB29.9 billion, while operating profit jumped 18% to RMB1.43 billion. Within this segment, ocean freight, air freight, and rail agency operating profits surged 10%, 89%, and 581% respectively, reaching RMB560 million, RMB90 million, and RMB140 million.

The significant rise in ocean and air freight rates during the first half drove some transportation demand to spill over to rail services. Meanwhile, the company strengthened internal product coordination across its group, achieving both volume and margin improvements.