Transport Sector, China and Asia-focused Research

Charles De Trenck

Thematic (Sector/Industry)

I really want to get to my <a href="https://www.smartkarma.com/entities/929" target="_blank" data-smartkarma-citation="entities:929:1">Pacific Basin Shipping Ltd (2343 HK)</a> Meeting Notes -- which I will in a few days. But I have more to say first. Dealing with a few family issues has also sucked away time over the last two weeks. Pacific Basin is going to continue performing in 2018, from a low 2016 base. To be sure, the PB Road Back remains a tough slog.What has not been as tough a slog is <a href="https://www.smartkarma.com/entities/6510" target="_blank" data-smartkarma-citation="entities:6510:1">Alcoa Inc (AA US)</a>, which has been on a tear, in 2017 and even more recently. In early December it stood at about…

I really want to get to my Pacific Basin Shipping Ltd (2343 HK) Meeting Notes -- which I will in a few days. But I have more to say first. Dealing with a few family issues has also sucked away time over the last two weeks. Pacific Basin is going to continue performing in 2018, from a low 2016 base. To be sure, the PB Road Back remains a tough slog.What has not been as tough a slog is Alcoa Inc (AA US), which has been on a tear, in 2017 and even more recently. In early December it stood at about…

A Few Stock Picks Up 10-20% in Couple of Weeks…Why Alcoa ….

Infrastructure Analyst - Ports & Terminals, Drewry Maritime Financial Research

Victor Wai, CFA

Infrastructure Analyst - Ports & Terminals

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.

Equity Bottom-Up

Hutchison Port Holdings Trust / Equity Bottom-Up

Hutchison Port Holdings Trust (HPHT SP Equity) kisses the support level of $0.40 apiece, with investors finding some feline-cuteness for the once-loved port infrastructure play. Amid a resurgent trade recovery post-Global Financial Crisis, Li Ka-Shing spun off the Pearl River Delta assets and listed them as a Trust for $1.01, promising attractive dividends for shareholders who take a long-term view on ports.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/040/107/original/HPHT_4.JPG?1512883791" class="editor-image img-responsive" data-smartkarma-image-id="40107"></figure><div class="content-caption">Throwback to the busy days... Source: JOC</div>Despite a series of misses in its earnings -…

Hutchison Port Holdings Trust (HPHT SP Equity) kisses the support level of $0.40 apiece, with investors finding some feline-cuteness for the once-loved port infrastructure play. Amid a resurgent trade recovery post-Global Financial Crisis, Li Ka-Shing spun off the Pearl River Delta assets and listed them as a Trust for $1.01, promising attractive dividends for shareholders who take a long-term view on ports.Throwback to the busy days... Source: JOCDespite a series of misses in its earnings -…

Hutchison Port Trust - Dead Cat Bounce No.10?

Cosco Shipping Ports (CSP) announced a third berth with PSA Singapore at the Pasir Panjang Terminal. We believe shareholders of CSP have little to gain from the enhanced deal.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/039/557/original/CSP.PNG?1512064185" class="editor-image img-responsive" data-smartkarma-image-id="39557"></figure><div class="content-caption">Cosco-PSA Terminal, source: IHS, MPA</div>Singapore-backed PSA wishes to entrench shipping lines to conduct transhipment activities in the republic. As cargo volumes pick up in the region, shipping lines may opt for more direct calls at out ports, rather than using feeder vessels to ferry containers from hub ports like Singapore…

Cosco Shipping Ports (CSP) announced a third berth with PSA Singapore at the Pasir Panjang Terminal. We believe shareholders of CSP have little to gain from the enhanced deal.Cosco-PSA Terminal, source: IHS, MPASingapore-backed PSA wishes to entrench shipping lines to conduct transhipment activities in the republic. As cargo volumes pick up in the region, shipping lines may opt for more direct calls at out ports, rather than using feeder vessels to ferry containers from hub ports like Singapore…

PSA Wins, Cosco Shipping Ports Loses in Joint Partnership

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. 

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Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

China Merchants Port, or CMP, became a pure port operator, following its disposal of 24.5%-owned associate CIMC, the container manufacturer. This allows the company to focus on its core competence in port operation, and with the cash proceeds of HKD 8.5 billion, we see the company accelerated its port expansion. The recent acquisitions include: CNY 5.4 billion for 60% Shantou Port in China, and up to USD 1.1 billion investment for a 99-year exclusive concession right on Hambantota Port in Sri Lanka. We expect acquisitions to be a dominant theme for CMP in the coming years, which is tightly aligned with China’s “one-belt-one-road” strategy. While the growing assets should warrant a sound bottom-line growth, we’re concerned that the aggressive expansion plan would require higher capital investments. Given the recent acquisitions for container terminals were mostly priced at around 1.6-2.2 times price/book, compared with the 1.1-1.2 times price/book for CMP’s existing assets, we would expect dilution to the company’s return on invested capital.Analyst: Jennifer Song

China Merchants Port, or CMP, became a pure port operator, following its disposal of 24.5%-owned associate CIMC, the container manufacturer. This allows the company to focus on its core competence in port operation, and with the cash proceeds of HKD 8.5 billion, we see the company accelerated its port expansion. The recent acquisitions include: CNY 5.4 billion for 60% Shantou Port in China, and up to USD 1.1 billion investment for a 99-year exclusive concession right on Hambantota Port in Sri Lanka. We expect acquisitions to be a dominant theme for CMP in the coming years, which is tightly aligned with China’s “one-belt-one-road” strategy. While the growing assets should warrant a sound bottom-line growth, we’re concerned that the aggressive expansion plan would require higher capital investments. Given the recent acquisitions for container terminals were mostly priced at around 1.6-2.2 times price/book, compared with the 1.1-1.2 times price/book for CMP’s existing assets, we would expect dilution to the company’s return on invested capital.Analyst: Jennifer Song

Disposal of CIMC Boosted CMP's 1H; M&A a Dominant Theme for 2017

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Event-Driven

Global Logistic Properties / Event-Driven

We are closing our suggested Long <a href="https://www.smartkarma.com/entities/2894" target="_blank" data-smartkarma-citation="entities:2894:1">Global Logistic Properties Ltd (GLP SP)</a> / Short <a href="https://www.smartkarma.com/entities/15155" target="_blank" data-smartkarma-citation="entities:15155:1">China Merchants Port Holdings Company Ltd. (144 HK)</a> pair trade idea on Friday's news that GLP has finally selected a bidder for the company. The winning bidder, a consortium of Chinese investors led by GLP CEO Ming Mei, will pay S$3.38 per share plus the previously announced 6 cent dividend (to be paid in August), which brings total consideration very close to our target price for GLP (S$3.55). GLP shares traded up…

We are closing our suggested Long Global Logistic Properties Ltd (GLP SP) / Short China Merchants Port Holdings Company Ltd. (144 HK) pair trade idea on Friday's news that GLP has finally selected a bidder for the company. The winning bidder, a consortium of Chinese investors led by GLP CEO Ming Mei, will pay S$3.38 per share plus the previously announced 6 cent dividend (to be paid in August), which brings total consideration very close to our target price for GLP (S$3.55). GLP shares traded up…

Closing GLP / China Merchants Ports Holdings Long-Short Pair Trade Idea on Positive GLP Deal News

Hong Kong

China Merchants Holdings International Company Limited, through its subsidiaries and associated companies, operates container and cargo terminals, port transportation, and airport cargo handling.  The Company also manufactures containers, paint, and trailers as well as operates toll road, shipping, property, and dealing securities businesses.

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China Merchants Port (144 HK)

A Few Stock Picks Up 10-20% in Couple of Weeks…Why Alcoa ….

I really want to get to my Pacific Basin Shipping Ltd (2343 HK) Meeting Notes -- which I will in a few days. But I have more to say first. Dealing...

Charles De Trenck

Hutchison Port Trust - Dead Cat Bounce No.10?

Hutchison Port Holdings Trust (HPHT SP Equity) kisses the support level of $0.40 apiece, with investors finding some feline-cuteness for the...

Drewry Maritime Financial Research

PSA Wins, Cosco Shipping Ports Loses in Joint Partnership

Cosco Shipping Ports (CSP) announced a third berth with PSA Singapore at the Pasir Panjang Terminal. We believe shareholders of CSP have little to...

Drewry Maritime Financial Research

Disposal of CIMC Boosted CMP's 1H; M&A a Dominant Theme for 2017

China Merchants Port, or CMP, became a pure port operator, following its disposal of 24.5%-owned associate CIMC, the container manufacturer. This...

Morningstar, Inc.

Closing GLP / China Merchants Ports Holdings Long-Short Pair Trade Idea on Positive GLP Deal News

We are closing our suggested Long Global Logistic Properties Ltd (GLP SP) / Short China Merchants Port Holdings Company Ltd. (144 HK) pair trade...

Daniel Hellberg

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