Transport Sector, China and Asia-focused Research

Charles De Trenck

Thematic (Sector/Industry)

Note: wins and losses are listed at the end of the piece.Transport has been on a roll. A month ago we saw crazy buying any which way with weak names rising more than better names. US Rail has done ok though not stellar. US Airlines have done better. Especially after Warren Buffett portfolio managers did the unthinkable and bought <a href="https://www.smartkarma.com/entities/3663" target="_blank" data-smartkarma-citation="entities:3663:1">American Airlines Group Inc (AAL US)</a>, DAL US and UAL US (announced mid Nov). But US airlines is a whole other turnaround story. Not your run of the mill core transport…

Note: wins and losses are listed at the end of the piece.Transport has been on a roll. A month ago we saw crazy buying any which way with weak names rising more than better names. US Rail has done ok though not stellar. US Airlines have done better. Especially after Warren Buffett portfolio managers did the unthinkable and bought American Airlines Group Inc (AAL US), DAL US and UAL US (announced mid Nov). But US airlines is a whole other turnaround story. Not your run of the mill core transport…

The Rally in Transport Continues in Twists and Turns

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.

Results of listed terminal operators reveal a weakness in organic earnings as gearing increases. Stricter cost rationalisation and financial risk reduction will retain investment interest. Companies with growth plans command a significant market premium as profitability diminishes.

Results of listed terminal operators reveal a weakness in organic earnings as gearing increases. Stricter cost rationalisation and financial risk reduction will retain investment interest. Companies with growth plans command a significant market premium as profitability diminishes.

Global Port Operators - 3Q16 Profitability Trends Lower on Slackening Growth

Founder and CEO, Europacifica Consulting

Naomi Fink

Founder and CEO

Europacifica Consulting

The stock of foreign direct investment into the "One Belt One Road" bloc is a small share of global investment; nonetheless, the bloc's share of global greenfield investment remain disproportionately large.Examination of large OBOR-resident firms and the composition of their assets and revenues show that many firms in the region remain much more dependent on Chinese sales than do Chinese firms on foreign-earned sales.  Nonetheless, the diversion of Chinese investment from domestic to overseas (as China rebalances its domestic growth away from domestic investment) could potentially shift this dynamic.  Large Chinese firms leading the charge abroad tend to belong to the Transport and Storage and Computer Equipment sectors.Meanwhile, large firms resident in OBOR tend already to be much more dependent on foreign-earned revenue; some of those more dependent on Chinese domestic demand  rather than regional demand may experience fallout from China's rebalancing.  Others exposed to growth elsewhere in the region may benefit, or themselves become targets for Chinese cross-border acquisitions within the region.

The stock of foreign direct investment into the "One Belt One Road" bloc is a small share of global investment; nonetheless, the bloc's share of global greenfield investment remain disproportionately large.Examination of large OBOR-resident firms and the composition of their assets and revenues show that many firms in the region remain much more dependent on Chinese sales than do Chinese firms on foreign-earned sales.  Nonetheless, the diversion of Chinese investment from domestic to overseas (as China rebalances its domestic growth away from domestic investment) could potentially shift this dynamic.  Large Chinese firms leading the charge abroad tend to belong to the Transport and Storage and Computer Equipment sectors.Meanwhile, large firms resident in OBOR tend already to be much more dependent on foreign-earned revenue; some of those more dependent on Chinese domestic demand  rather than regional demand may experience fallout from China's rebalancing.  Others exposed to growth elsewhere in the region may benefit, or themselves become targets for Chinese cross-border acquisitions within the region.

Silk Roads Part 3: China and OBOR Investment

Thematic Investing in Tech and Media, CM Research

Cyrus Mewawalla

Thematic Investing in Tech and Media

Thematic TMT investing

CM Research

CM Research is an independent research house based in London, England. We provide global thematic research in the Technology, Media and Telecoms (TMT) sectors. 

Our focus is on disruptive technologies: how will they unfold; which industries will be impacted; and who will be the ultimate winners and losers. 

Our aim is to help investors predict share prices and corporate executives stay one step ahead of the technology trends that are shaping their industry. 

We research technology investment themes in detail and then feed the results into a scorecard system to quantify the impact of several conflicting themes on individual stocks. 

Recent themes covered include internet TV, the Internet of Things, Big Data, Mobile payments, crowdfunding, artificial intelligence, the cloud, software defined networking and Generation Hashtag.

We cover the top 500 global TMT stocks by market capitalisation and several technology start-ups and pre-IPO companies too. 

In 2015, CM Research analysts outperformed the Bloomberg Benchmark Analyst Index - which measures how good analysts are at predicting stock prices - by 7.1%.

By 2020, the global cybersecurity market is expected to be worth $170bn, up from $77bn in 2015. But the core issue is that companies need “better” rather than “more” security.Most cybersecurity companies sell an imperfect product. The common joke in the industry is that no cybersecurity company can really protect you against the latest threats out there. In a sense, they all overpromise and underdeliver.If this is true, should investors steer clear of the sector altogether?To help investors answer that question we look at three areas:- industry growth drivers- corporate governance trends- wider cybersecurity industry trends

By 2020, the global cybersecurity market is expected to be worth $170bn, up from $77bn in 2015. But the core issue is that companies need “better” rather than “more” security.Most cybersecurity companies sell an imperfect product. The common joke in the industry is that no cybersecurity company can really protect you against the latest threats out there. In a sense, they all overpromise and underdeliver.If this is true, should investors steer clear of the sector altogether?To help investors answer that question we look at three areas:- industry growth drivers- corporate governance trends- wider cybersecurity industry trends

Cybersecurity as an Investment Theme (Part 2)

The world has entered the era of the Code War where every digital device, however small and innocuous, can be “weaponised” – as the recent Dyn cyber-attack aptly illustrated – to send “rogue code” deep into the Internet's engine room to create mayhem. Even the spooks are scared.New technology cycles such as the Cloud, the Internet of Things, robotics and the latest social media fads all increase cyber risk.Below, we summarise the the changing nature of cyber threat and the changing nature of the technology sector's response. In the process, we identify some of the winners and losers for investors.

The world has entered the era of the Code War where every digital device, however small and innocuous, can be “weaponised” – as the recent Dyn cyber-attack aptly illustrated – to send “rogue code” deep into the Internet's engine room to create mayhem. Even the spooks are scared.New technology cycles such as the Cloud, the Internet of Things, robotics and the latest social media fads all increase cyber risk.Below, we summarise the the changing nature of cyber threat and the changing nature of the technology sector's response. In the process, we identify some of the winners and losers for investors.

Cybersecurity as an Investment Theme (Part 1)

China

Air China Limited provides passenger, cargo, and airline-related services in China.  The Company is primarily based in Beijing and a major hub for domestic and international air transportation.  Air China's airline-related services include aircraft maintenance, repair, overhaul service, ground services, and in-flight catering services.

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Air China Ltd (H) (753 HK)

The Rally in Transport Continues in Twists and Turns

Note: wins and losses are listed at the end of the piece.Transport has been on a roll. A month ago we saw crazy buying any which way with weak...

Charles De Trenck

Global Port Operators - 3Q16 Profitability Trends Lower on Slackening Growth

Results of listed terminal operators reveal a weakness in organic earnings as gearing increases. Stricter cost rationalisation and financial risk...

Drewry Maritime Financial Research

Silk Roads Part 3: China and OBOR Investment

The stock of foreign direct investment into the "One Belt One Road" bloc is a small share of global investment; nonetheless, the bloc's share of...

Naomi Fink

Cybersecurity as an Investment Theme (Part 2)

By 2020, the global cybersecurity market is expected to be worth $170bn, up from $77bn in 2015. But the core issue is that companies need “better”...

CM Research

Cybersecurity as an Investment Theme (Part 1)

The world has entered the era of the Code War where every digital device, however small and innocuous, can be “weaponised” – as the recent Dyn...

CM Research

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52-week Range

Market Cap (USDm)

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