Transport Sector, China and Asia-focused Research

Charles De Trenck

Equity Bottom-Up

AP Moeller - Maersk A/S / Equity Bottom-Up

Maersk announced it would make a cash (A $4bn figure was initially thrown out, but this appears too high. Other estimates are Maersk would not likely have paid more than $2bn) offer for leading and family owned North-South carrier Hamburg Sud. These mergers continue to be positive for this poorly run industry. The move is positive for Maersk and for the global containerized transport industry and could see Maersk at about 19% of global capacity.See as well <a href="https://www.smartkarma.com/profiles/356" target="_blank" data-smartkarma-citation="accounts:356">Drewry Maritime Equity Research</a> and its…

Maersk announced it would make a cash (A $4bn figure was initially thrown out, but this appears too high. Other estimates are Maersk would not likely have paid more than $2bn) offer for leading and family owned North-South carrier Hamburg Sud. These mergers continue to be positive for this poorly run industry. The move is positive for Maersk and for the global containerized transport industry and could see Maersk at about 19% of global capacity.See as well Drewry Maritime Equity Research and its…

Implications of Maersk's Hamburg Sud Purchase

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.

We have been negative on A.P. Møller - Mærsk A/S and container shipping for majority of the last few years, <a href="https://www.smartkarma.com/insights/a-p-moller-maersk-a-s-maerskb-dc-why-we-are-turning-sellers-of-apmm" target="_blank">https://www.smartkarma.com/insights/a-p-moller-maersk-a-s-maerskb-dc-why-we-are-turning-sellers-of-apmm</a> &amp; <a href="https://www.smartkarma.com/insights/a-p-moller-maersk-a-s-maerskb-dc-2q16-outlook-subdued-maintain-unattractive" target="_blank">https://www.smartkarma.com/insights/a-p-moller-maersk-a-s-maerskb-dc-2q16-outlook-subdued-maintain-unattractive</a>. The primary reason was underlying weakness in global trade and excessive global capacity. We see early signs of reversal in pricing and APMM being the most operationally leverage to a recovery is set to report strong earnings in 2017. We upgrade APMM to “Attractive” from “Unattractive” earlier and reverse our bearish stance purely on improving sector fundamentals as we look through the noise of rising trade protectionism. We expect Maersk Line to return to profitability in FY17. We put our TP at DKK 10,000 which is still conservative with further upside in store as we look for further evidence in our investment thesis to play out.

We have been negative on A.P. Møller - Mærsk A/S and container shipping for majority of the last few years, https://www.smartkarma.com/insights/a-p-moller-maersk-a-s-maerskb-dc-why-we-are-turning-sellers-of-apmm &amp; https://www.smartkarma.com/insights/a-p-moller-maersk-a-s-maerskb-dc-2q16-outlook-subdued-maintain-unattractive. The primary reason was underlying weakness in global trade and excessive global capacity. We see early signs of reversal in pricing and APMM being the most operationally leverage to a recovery is set to report strong earnings in 2017. We upgrade APMM to “Attractive” from “Unattractive” earlier and reverse our bearish stance purely on improving sector fundamentals as we look through the noise of rising trade protectionism. We expect Maersk Line to return to profitability in FY17. We put our TP at DKK 10,000 which is still conservative with further upside in store as we look for further evidence in our investment thesis to play out.

A.P. Møller - Mærsk A/S (MAERSKB DC) – Looking Through the Noise, Double Upgrade to "Attractive"

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Orient Overseas International / Equity Bottom-Up

In our comments on the global container shipping segment, we have until recently argued that players on the supply side -- liner operators and other container ship owners -- have not taken the painful steps needed to bring excess supply in line with weakened demand in the near-term, and that the benefits of consolidation weren't likely to be seen for at least another year or two. In the last few weeks, however, we have seen evidence that ship owners are finally biting the bullet and reducing…

In our comments on the global container shipping segment, we have until recently argued that players on the supply side -- liner operators and other container ship owners -- have not taken the painful steps needed to bring excess supply in line with weakened demand in the near-term, and that the benefits of consolidation weren't likely to be seen for at least another year or two. In the last few weeks, however, we have seen evidence that ship owners are finally biting the bullet and reducing…

Container Shipping: Demand Weak, But Supply Side Taking Needed Steps; Hanjin Sold; Focus On OOIL

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%.

Thematic (Sector/Industry)

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)

Denmark

A.P. Moeller-Maersk A/S is a conglomerate with diversified holdings. The Company operates a fleet including container vessels, tankers, supply ships, special vessels, APM terminials, and oil drilling rigs.  A.P. Moeller-Maersk also operates industrial business and explores for and produces oil and gas. The Company is active worldwide.

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AP Moeller - Maersk A/S (MAERSKB DC)

Implications of Maersk's Hamburg Sud Purchase

Maersk announced it would make a cash (A $4bn figure was initially thrown out, but this appears too high. Other estimates are Maersk would not...

Charles De Trenck

A.P. Møller - Mærsk A/S (MAERSKB DC) – Looking Through the Noise, Double Upgrade to "Attractive"

We have been negative on A.P. Møller - Mærsk A/S and container shipping for majority of the last few...

Drewry Maritime Financial Research

Container Shipping: Demand Weak, But Supply Side Taking Needed Steps; Hanjin Sold; Focus On OOIL

In our comments on the global container shipping segment, we have until recently argued that players on the supply side -- liner operators and...

Daniel Hellberg

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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