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)

2015: Investors catch a falling knife disguised as pocket of value<img src="https://static-prod.smartkarma.com/images/media/000/004/981/original/Price%20Performance.JPG?1452658223" class="editor-image img-responsive" data-smartkarma-image-id="4981"> Source: Bloomberg, DMER<ul>
<li>Investors suffered massive wealth erosion in 2015, as share prices of dry bulk companies kept tumbling during the year. DMER’s shipping index, which is based on the market cap of leading dry bulk companies, was down ~43% in 2015.</li>
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Dry bulk owners were confronted with weak shipping demand because of the slowdown in Chinese economy, which resulted in huge losses. BDI touched record lows of 415 at the onset of…</li>
</ul>

2015: Investors catch a falling knife disguised as pocket of value Source: Bloomberg, DMER
Investors suffered massive wealth erosion in 2015, as share prices of dry bulk companies kept tumbling during the year. DMER’s shipping index, which is based on the market cap of leading dry bulk companies, was down ~43% in 2015.

Dry bulk owners were confronted with weak shipping demand because of the slowdown in Chinese economy, which resulted in huge losses. BDI touched record lows of 415 at the onset of…


Dry Bulk Shipping - 2016 - Falling Knife Disguised as Pocket of Value ?

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

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

China Energy Engineering / Equity Capital Markets

China Energy Engineering Corporation (CEEC) plans to raise US$1.8-2.0bn through its IPO. It&nbsp;has locked in twenty (mostly government affiliated) cornerstone investors, who will take up over 60% of the deal.We&nbsp;remain lukewarm about the IPO, given:<ul><li>The company's main expertise lie in designing and constructing fossil fuel plants,&nbsp;investment in which is flat lining</li><li>Overseas orders have been coming through thick and fast but don't seem to be flowing through as fast to revenue, and hence, overseas accounts for&nbsp;a smaller proportion of revenue</li><li>Valuation isn't demanding, but growth prospects remain dim</li><li>The deal scores a mixed score on our framework</li></ul>

China Energy Engineering Corporation (CEEC) plans to raise US$1.8-2.0bn through its IPO. It&nbsp;has locked in twenty (mostly government affiliated) cornerstone investors, who will take up over 60% of the deal.We&nbsp;remain lukewarm about the IPO, given:The company's main expertise lie in designing and constructing fossil fuel plants,&nbsp;investment in which is flat liningOverseas orders have been coming through thick and fast but don't seem to be flowing through as fast to revenue, and hence, overseas accounts for&nbsp;a smaller proportion of revenueValuation isn't demanding, but growth prospects remain dimThe deal scores a mixed score on our framework

Well past Its Prime - Domestic Growth Slowing, While Overseas Projects Remain Slow Moving

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Walgreens Boots Alliance (WBA: US) has named Executive Vice Chairman and interim CEO Stefano Pessina as CEO, a move that has been expected. Mr. Pessina had built up Alliance Boots into a leading European and Asian health &amp; beauty retail chain. We expect the company to resume its acquisition program, but the US market looks like the top priority at the moment. WBA will increase its presence in Asia: the only question is timing.

Walgreens Boots Alliance (WBA: US) has named Executive Vice Chairman and interim CEO Stefano Pessina as CEO, a move that has been expected. Mr. Pessina had built up Alliance Boots into a leading European and Asian health &amp; beauty retail chain. We expect the company to resume its acquisition program, but the US market looks like the top priority at the moment. WBA will increase its presence in Asia: the only question is timing.

Walgreens Boots Alliance Names Permanent CEO: Global Expansion to Continue

Transport Sector, China and Asia-focused Research

Charles De Trenck

Yes there are a few good China companies out there. In general a company like China Merchants has a good long term theme going for it (see April notes). But in shipping there are more badly run companies than good ones.&nbsp; What follows is an update on a piece I did for a specialized shipping publication following a long line of pieces I have put out delving into COSCO and CSCL corporate governance nightmares over the years. The truth is investors were ripped off on valuations from day one, with bankers helping as a result of shoddy work. Seasoned investors of course are not surprised to find this out. But what still amazes after so many years is the extent of mis-deeds and quite often the lack of interest to delve further into the problems. Feedback I've gotten so far are industry insiders agreeing with the extent of the corruption, and an expression of frustration they could not discuss more openly (although I think the spirit of Xi Jinping's exhortations would support further examination. ... recently Reuters and others did look into new facets of breakdowns at CSCL and COSCO).

Yes there are a few good China companies out there. In general a company like China Merchants has a good long term theme going for it (see April notes). But in shipping there are more badly run companies than good ones.&nbsp; What follows is an update on a piece I did for a specialized shipping publication following a long line of pieces I have put out delving into COSCO and CSCL corporate governance nightmares over the years. The truth is investors were ripped off on valuations from day one, with bankers helping as a result of shoddy work. Seasoned investors of course are not surprised to find this out. But what still amazes after so many years is the extent of mis-deeds and quite often the lack of interest to delve further into the problems. Feedback I've gotten so far are industry insiders agreeing with the extent of the corruption, and an expression of frustration they could not discuss more openly (although I think the spirit of Xi Jinping's exhortations would support further examination. ... recently Reuters and others did look into new facets of breakdowns at CSCL and COSCO).

A Brief History of Corporate Governance Nightmares at China's Flagship Shipping Companies

Hong Kong

China State Construction International Holdings Limited, through its subsidiaries, provides building construction and civil engineering works services in Hong Kong.

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China State Construction Int'L (3311 HK)

Dry Bulk Shipping - 2016 - Falling Knife Disguised as Pocket of Value ?

2015: Investors catch a falling knife disguised as pocket of value Source: Bloomberg, DMER Investors suffered massive wealth erosion in 2015, as...

Drewry Maritime Financial 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

Well past Its Prime - Domestic Growth Slowing, While Overseas Projects Remain Slow Moving

China Energy Engineering Corporation (CEEC) plans to raise US$1.8-2.0bn through its IPO. It has locked in twenty (mostly government affiliated)...

Sumeet Singh

Walgreens Boots Alliance Names Permanent CEO: Global Expansion to Continue

Walgreens Boots Alliance (WBA: US) has named Executive Vice Chairman and interim CEO Stefano Pessina as CEO, a move that has been expected. Mr....

Kemp Dolliver, CFA

A Brief History of Corporate Governance Nightmares at China's Flagship Shipping Companies

Yes there are a few good China companies out there. In general a company like China Merchants has a good long term theme going for it (see April...

Charles De Trenck

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