Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

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Equity Bottom-Up

In a move that we think has long been suspected, Noble Group is making significant impairment charges on its assets of around USD 1.2 billion, in addition to the USD 546 million it will write off related to the pending sale of its Noble Agri unit.While we are maintaining some of our key operating assumptions ahead of the release of fourth quarter 2015 results on Feb. 25, factoring in these charges deepens our forecast 2015 net loss to USD 1.34 billion.Analysts: Lorraine Tan &amp; Dan Baker

In a move that we think has long been suspected, Noble Group is making significant impairment charges on its assets of around USD 1.2 billion, in addition to the USD 546 million it will write off related to the pending sale of its Noble Agri unit.While we are maintaining some of our key operating assumptions ahead of the release of fourth quarter 2015 results on Feb. 25, factoring in these charges deepens our forecast 2015 net loss to USD 1.34 billion.Analysts: Lorraine Tan &amp; Dan Baker

Noble Group Finally Makes the Suspected Impairment Charges

A meeting with Noble Group management indicates limited fundamental impact from the recent Moody's and Standard &amp; Poor's credit ratings downgrades. Full Details below...Analysts: Lorraine Tan &amp; Dan Baker

A meeting with Noble Group management indicates limited fundamental impact from the recent Moody's and Standard &amp; Poor's credit ratings downgrades. Full Details below...Analysts: Lorraine Tan &amp; Dan Baker

Credit Ratings Downgrades Largely Anticipated; No Change In Our View

The accounting research firm, GMT Research

Lisa Mangkornkarn

The accounting research firm

GMT Research

GMT Research provides independent insight into markets, sectors and companies throughout Asia. Our unique method of mining a comprehensive collection of corporate financial statements for key data allows us to evaluate the financial health of a company, sectors and the market at large. We also investigate the application of accounting standards by companies and sectors, shedding light on the quality of reported profits. Armed with this information, we help investment professionals navigate the financial landscape.

Beijing Enterprises Water Group / Equity Bottom-Up

Beijing Enterprises Water (BEW, 371 HK), AirAsia and Noble Group have a lot in common: They book profits but fail to generate cash. At each company this has led to highly levered balance sheets with scant underlying cash inflows from which to service debt. In our report on BEW, we explain how the company uses questionable accounting assumptions and disclosure to hide the fact that cash-backed profits are less than half the reported numbers. Large deferred tax liabilities would appear to confirm the scale of this accounting mirage. BEW continues to grow using borrowed money and, as a result, is now over-leveraged. This situation is made worse by much of its debt being offshore and unhedged. The company is now reliant on capital markets to fund its capex and debt repayment. Should the renminbi weaken or credit markets tighten the business model could rapidly unravel. We think the stock worth just 50% of book value at HK$0.95/share, some 80% below current levels.

Beijing Enterprises Water (BEW, 371 HK), AirAsia and Noble Group have a lot in common: They book profits but fail to generate cash. At each company this has led to highly levered balance sheets with scant underlying cash inflows from which to service debt. In our report on BEW, we explain how the company uses questionable accounting assumptions and disclosure to hide the fact that cash-backed profits are less than half the reported numbers. Large deferred tax liabilities would appear to confirm the scale of this accounting mirage. BEW continues to grow using borrowed money and, as a result, is now over-leveraged. This situation is made worse by much of its debt being offshore and unhedged. The company is now reliant on capital markets to fund its capex and debt repayment. Should the renminbi weaken or credit markets tighten the business model could rapidly unravel. We think the stock worth just 50% of book value at HK$0.95/share, some 80% below current levels.

Beijing Enterprises Water: Show Me the Money!

Equity Research Analyst, Maritime sector, Drewry Maritime Financial Research

Ankush Kathuria CFA, FRM

Equity Research Analyst, Maritime sector

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

Thematic (Sector/Industry)

Ominous start to the year for container shipping with Drewry forecasting container shipping profitability to deteriorate in 2016. Ocean freight rates for cargo moving under contracts on the major East-West trade routes witnessing another reduction in the last quarter of 2015, according to Drewry’s Benchmarking Club, a closed user group of multinational retailers and manufacturers who closely monitor their contract freight rates. The Drewry Benchmarking Club Contract Rate Index, based on Trans…

Ominous start to the year for container shipping with Drewry forecasting container shipping profitability to deteriorate in 2016. Ocean freight rates for cargo moving under contracts on the major East-West trade routes witnessing another reduction in the last quarter of 2015, according to Drewry’s Benchmarking Club, a closed user group of multinational retailers and manufacturers who closely monitor their contract freight rates. The Drewry Benchmarking Club Contract Rate Index, based on Trans…

2016 - Washout Year for Container Shipping

Wilmar has been coping with protracted softness in edible oil&nbsp;prices since early 2011.Coming into 2015, slowing oil palm acreage&nbsp;growth in Indonesia and Malaysia, coupled with more favourable&nbsp;biodiesel mandates in Indonesia, stirred an upbeat mood in the&nbsp;capital market on the firm's profit recovery, but prices have&nbsp;continued to decline.We believe that an abundant soybean supply--a substitute edible&nbsp;oil source--will limit palm oil price growth over the long term.In the downstream segment, Wilmar&rsquo;s oilseed crushing and refining&nbsp;business is plagued by severe industry overcapacity.Wilmar chose to diversify toward the sugar business amid the&nbsp;turmoil in the edible oil market. By the end of 2014, its sugar&nbsp;business contributed 9.4% of total sales, up from 6.8% in 2011.&nbsp;Diversification will reduce the firm's overall exposure to edible oil&nbsp;prices. Nonetheless, sugar prices are sluggish as well.Analyst: Dan Baker

Wilmar has been coping with protracted softness in edible oil&nbsp;prices since early 2011.Coming into 2015, slowing oil palm acreage&nbsp;growth in Indonesia and Malaysia, coupled with more favourable&nbsp;biodiesel mandates in Indonesia, stirred an upbeat mood in the&nbsp;capital market on the firm's profit recovery, but prices have&nbsp;continued to decline.We believe that an abundant soybean supply--a substitute edible&nbsp;oil source--will limit palm oil price growth over the long term.In the downstream segment, Wilmar&rsquo;s oilseed crushing and refining&nbsp;business is plagued by severe industry overcapacity.Wilmar chose to diversify toward the sugar business amid the&nbsp;turmoil in the edible oil market. By the end of 2014, its sugar&nbsp;business contributed 9.4% of total sales, up from 6.8% in 2011.&nbsp;Diversification will reduce the firm's overall exposure to edible oil&nbsp;prices. Nonetheless, sugar prices are sluggish as well.Analyst: Dan Baker

Lacklustre Long-Term Edible Oil Profitability Prospects Cap our Enthusiasm for Wilmar's Renaissance.

Singapore

Noble Group Limited manages a portfolio of global supply chains covering a range of industrial and energy products. The Company facilitates the marketing, processing, financing and transportation of essential raw materials by sourcing bulk commodities from regions in South America, South Africa, Australia, Indonesia and supplying high growth demand markets in Asia and the Middle East.

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Noble Group Ltd (NOBL SP)

Noble Group Finally Makes the Suspected Impairment Charges

In a move that we think has long been suspected, Noble Group is making significant impairment charges on its assets of around USD 1.2 billion, in...

Morningstar, Inc.

Credit Ratings Downgrades Largely Anticipated; No Change In Our View

A meeting with Noble Group management indicates limited fundamental impact from the recent Moody's and Standard & Poor's credit ratings...

Morningstar, Inc.

Beijing Enterprises Water: Show Me the Money!

Beijing Enterprises Water (BEW, 371 HK), AirAsia and Noble Group have a lot in common: They book profits but fail to generate cash. At each company...

GMT Research

2016 - Washout Year for Container Shipping

Ominous start to the year for container shipping with Drewry forecasting container shipping profitability to deteriorate in 2016. Ocean freight...

Drewry Maritime Financial Research

Lacklustre Long-Term Edible Oil Profitability Prospects Cap our Enthusiasm for Wilmar's Renaissance.

Wilmar has been coping with protracted softness in edible oil prices since early 2011.Coming into 2015, slowing oil palm acreage growth in...

Morningstar, Inc.

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