Transport Sector, China and Asia-focused Research

Charles De Trenck

Thematic (Sector/Industry)

People used to say Texas would be the most likely state to secede from the Union. Even recently. Now they will write about California seceding. And see this comment <a href="http://www.vanityfair.com/news/2016/11/how-a-trump-administration-could-terrorize-silicon-valley" target="_blank">today</a> on Trump and Silicon Valley.Tech plays aka many California plays from <a href="https://www.smartkarma.com/entities/409" target="_blank" data-smartkarma-citation="entities:409">Amazon.Com Inc (AMZN US)</a> to <a href="https://www.smartkarma.com/entities/20279" target="_blank" data-smartkarma-citation="entities:20279">Tesla Motors Inc (TSLA US)</a> have fared poorly in the first round of a Trump-elect rally. As somewhat expected the other night, names like BTUUQ (new ticker pink sheets) <a href="https://www.smartkarma.com/entities/6430" target="_blank" data-smartkarma-citation="entities:6430">Peabody Energy Corp (BTU US)</a> (+50% yesterday and a further 15%…

People used to say Texas would be the most likely state to secede from the Union. Even recently. Now they will write about California seceding. And see this comment today on Trump and Silicon Valley.Tech plays aka many California plays from Amazon.Com Inc (AMZN US) to Tesla Motors Inc (TSLA US) have fared poorly in the first round of a Trump-elect rally. As somewhat expected the other night, names like BTUUQ (new ticker pink sheets) Peabody Energy Corp (BTU US) (+50% yesterday and a further 15%…

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 publish an update on our Maritime Model Portfolio. Our earlier model portfolio updates can be found at <a href="https://www.smartkarma.com/insights/maritime-model-portfolio-adding-risk-with-upgrade-on-dry-bulk-and-downgrade-on-tanker-shipping" target="_blank">https://www.smartkarma.com/insights/maritime-model-portfolio-adding-risk-with-upgrade-on-dry-bulk-and-downgrade-on-tanker-shipping</a> &amp; <a href="https://www.smartkarma.com/insights/dmer-launches-model-stock-portfolio-for-the-maritime-sector" target="_blank">https://www.smartkarma.com/insights/dmer-launches-model-stock-portfolio-for-the-maritime-sector</a>The Timeline<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/015/357/original/mmp1.JPG?1477455972" class="editor-image img-responsive" data-smartkarma-image-id="15357"></figure>Model portfolio – revisiting our tactical idea, How has it panned out so far?<ul><li>
Our selected stocks from the Dry Bulk sector generated a return of 8.7% (28%…</li></ul>

We publish an update on our Maritime Model Portfolio. Our earlier model portfolio updates can be found at https://www.smartkarma.com/insights/maritime-model-portfolio-adding-risk-with-upgrade-on-dry-bulk-and-downgrade-on-tanker-shipping &amp; https://www.smartkarma.com/insights/dmer-launches-model-stock-portfolio-for-the-maritime-sectorThe TimelineModel portfolio – revisiting our tactical idea, How has it panned out so far?
Our selected stocks from the Dry Bulk sector generated a return of 8.7% (28%…

Maritime Model Portfolio - Early Call on Dry Bulk Stocks Offsets Initial Losses

Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

A Hillary victory would benefit Thai markets in terms of TIP market re-allocations and export strength, while hurting us on global stability. Victims of Trump includes energy and exporters. If Hillary extends Obamacare, chances of Americans coming to Thailand for medical tourism will also decline yo.In Las Vegas, Hillary and Trump meet for their final debate, and both of them were SPECTACULAR. Not all the polls are out yet, but we generally agree that Hillary won narrowly. Trump had better grasps of foreign politics and exuded more confidence, but President (yes, trust me on this) Hillary won a vote from MCorp Review for superior thematic consistency (very important to us) and sportsmanship. The two candidates tied on economics, and no scores were awarded for emotional connection since this ain't no town hall format. At the end of the day, we regret to inform Trump supporters that well...he really shot himself in the foot yo. :(

A Hillary victory would benefit Thai markets in terms of TIP market re-allocations and export strength, while hurting us on global stability. Victims of Trump includes energy and exporters. If Hillary extends Obamacare, chances of Americans coming to Thailand for medical tourism will also decline yo.In Las Vegas, Hillary and Trump meet for their final debate, and both of them were SPECTACULAR. Not all the polls are out yet, but we generally agree that Hillary won narrowly. Trump had better grasps of foreign politics and exuded more confidence, but President (yes, trust me on this) Hillary won a vote from MCorp Review for superior thematic consistency (very important to us) and sportsmanship. The two candidates tied on economics, and no scores were awarded for emotional connection since this ain't no town hall format. At the end of the day, we regret to inform Trump supporters that well...he really shot himself in the foot yo. :(

What Happens in Vegas...Goes to the White House (Hillary 2, Trump 1...Game Over!)

Strong supply growth on account of high vessel deliveriesscheduled in FY16/FY17 will continue to keep the LPG shipping market in imbalance. On the demand side, with lower price of LPG in Asia, the propane trade has been hurt, and there has been no major driver of incremental demand to absorb the excess tonnage available. Freight rates across segments have dropped in the recent past, and we do not expect a meaningful recovery over the next 12 months, even thoughthere could be a short-lived…

Strong supply growth on account of high vessel deliveriesscheduled in FY16/FY17 will continue to keep the LPG shipping market in imbalance. On the demand side, with lower price of LPG in Asia, the propane trade has been hurt, and there has been no major driver of incremental demand to absorb the excess tonnage available. Freight rates across segments have dropped in the recent past, and we do not expect a meaningful recovery over the next 12 months, even thoughthere could be a short-lived…

DMER - LPG Shipping - Headwinds to Persist in FY17

Two New Yorkers who would be the future President of America debated in a world-stopping match at the home state today, and most would agree that Hillary won. Nevertheless, we get some credit to two Thai pundits who true to their contrarian nature said Trump is better for the Thai and Asian economies. We like Trump's take on tax cuts and high infrastructure spending, as this could be America needs for the short term. If elected, Hillary is more likely to get re-elected in 2020 than a now unlikely President Trump, so it's good that she has long term policies. With Trump's emphasis on local production of coal and oil, his defeat today bodes well for Banpu and PTTEP, as well as Thai exporters. Though Trump is not targetting Thai exports (we are too small), we agree with Dr. Chawala of CIMB that his attacks on China eventually trickle down to Thai exporters as well, since many Chinese companies buy from Thailand for re-export. With export revenues, Chinese would also have problems purchasing stuff from us.

Two New Yorkers who would be the future President of America debated in a world-stopping match at the home state today, and most would agree that Hillary won. Nevertheless, we get some credit to two Thai pundits who true to their contrarian nature said Trump is better for the Thai and Asian economies. We like Trump's take on tax cuts and high infrastructure spending, as this could be America needs for the short term. If elected, Hillary is more likely to get re-elected in 2020 than a now unlikely President Trump, so it's good that she has long term policies. With Trump's emphasis on local production of coal and oil, his defeat today bodes well for Banpu and PTTEP, as well as Thai exporters. Though Trump is not targetting Thai exports (we are too small), we agree with Dr. Chawala of CIMB that his attacks on China eventually trickle down to Thai exporters as well, since many Chinese companies buy from Thailand for re-export. With export revenues, Chinese would also have problems purchasing stuff from us.

United States

Caterpillar Inc. designs, manufactures and markets construction, mining and forestry machinery. The Company also manufactures engines  and other related parts for its equipment, and offers financing and insurance. Caterpillar distributes its products through a worldwide organization of dealers.

Graco Inc. supplies technology for the management of fluids in both industrial and commercial applications.  The Company designs, manufactures, and markets systems to move, measure, control, dispense, and apply fluid materials.  Graco's products are used for applying paints and coatings, high-pressure cleaning of equipment, and lubricating and maintaining vehicles and other equipment.

Nordson Corporation designs, manufactures, and markets systems that apply adhesives, sealants, and coatings to consumer and industrial products during manufacturing operations.  The Company's products include customized electronic controls for the precise application and curing of materials to meet customers' requirements.  Nordson operates around the world.

Illinois Tool Works Inc. designs and manufactures fasteners and components, equipment and consumable systems, and a variety of specialty products and equipment.  The Company's products include industrial fluids and adhesives, tooling for specialty applications, welding products, and quality measurement equipment and systems.  Illinois Tool Works operates worldwide.

Parker-Hannifin Corporation manufactures motion control products, including fluid power systems, electromechanical controls, and related components.  The Company also produces fluid purification, fluid flow, process instrumentation, air conditioning, refrigeration, and electromagnetic shielding and thermal management products.

IDEX Corporation designs, manufactures, and markets a variety of pump products, dispensing equipment, and other engineered products.  The Company's products include industrial pumps, lubrication systems, banding and clamping devices, and rescue tools.  IDEX markets its products to customers in the United States and overseas.

Xylem, Inc. is a designer, manufacturer, equipment and service provider for water and wastewater applications addressing the full-cycle of water from collection, distribution, and use to the return of water to the environment. The Company's products include water and wastewater pumps, treatment and testing equipment, industrial pumps, valves, heat exchangers, and dispensing equipment.

Wabtec Corporation, doing business as Westinghouse Air Brake Technologies Corporation, provides technology products and services for the rail industry on a worldwide basis. The Company manufactures a range of products for locomotives, freight cars, and passenger transit vehicles. Wabtec also builds new locomotives and provides aftermarket services.

Dover Corporation manufactures industrial products and manufacturing equipments. The Company's products includes printing, identification, marking and coding systems, waste handling, industrial equipments, refrigeration systems, display cases, industrial pumps, fuel dispensers, nozzles, piping, and electronic tank gauge equipments. Dover serves customers worldwide.

Snap-on Incorporated develops, manufactures, and distributes tool and equipment solutions worldwide.  The Company's products include hand and power tools, diagnostics and shop equipment, tool storage products, diagnostics software, and other solutions for the automotive service industry.  Customers include professional service technicians and motor service shop owners, among others.

CRRC Corporation Limited manufactures rolling stock products. The Company produces locomotives, passenger carriages, freight wagons, vehicles key components, and other products. CRRC also provides vehicle repairing, investment management, and other services.

FANUC CORPORATION manufactures factory automation (FA) systems and equipments, and robots. The Company's products include computerized numerically-controlled (CNC) equipment, servo motors, laser systems, industrial robots, wire-cut electric discharge machines, and CNC drill.  Fanuc participates in a joint venture with General Electric in the FA field.

China CSSC Holdings Ltd. offers shipbuilding, ship components, ship repairing and diesel engines manufacturing. The Company distributes its products within the domestic market and to overseas markets.

China Shipbuilding Industry Company Limited designs, manufactures, sells and leases ship parts.  The Company's products include engines and parts, auxiliay engines and transportation equipment.

KOMATSU LTD. manufactures and sells construction and mining machinery, including excavators, bulldozers, and wheel loaders.  The Company, operating on a global scale, also produces forklift trucks and engineering equipment such as press system.

Weichai Power Co., Ltd. specializes in the research and development, manufacturing and sales of diesel engines. The company's products are applicable to markets such as, heavy-duty vehicles, coaches, construction machines, vessels and power generator.

KUBOTA CORPORATION manufactures industrial machinery, farm machinery, and fluid piping systems.  The Company's products include ductile iron pipes, engines, tractors, combine harvesters, reaper binders, rice planters, and excavators.  Kubota also produces forged iron products, housing equipment, and environmental control plants.

Mitsubishi Heavy Industries, Ltd. is a comprehensive heavy machinery maker. The Company manufactures machinery, ships, turbines and engines, prime movers, aircrafts, and machine parts for military and commercial use.  Mitsubishi Heavy Industries also researches and develops nuclear power plants.

Hengli Petrochemical Co.,Ltd. manufactures chemical fibers. The Company researches, produces, and sells polyester filament and chips for consumer and industry products. Hengli Petrochemical markets it products worldwide.

Hengli Petrochemical Co.,Ltd. A (600346 CH)

Shenzhen Inovance Technology Co., Ltd. develops, manufactures and sells automate control products.  The Company's products include low frequency converter, servo drive, and programmable logic controller (PLC).

Shenzhen Inovance Technology Co., (300124 CH)

Deere & Company manufactures and distributes a range of agricultural, construction and forestry, and commercial and consumer equipment.  The Company supplies replacement parts for its own products and for those of other manufacturers. Deere also provides product and parts financing services. Deere and Company extends its services and products worldwide.

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Deere & Co (DE US)

The Trump Rally Portfolio Reorganization

People used to say Texas would be the most likely state to secede from the Union. Even recently. Now they will write about California seceding. And...

Charles De Trenck

Maritime Model Portfolio - Early Call on Dry Bulk Stocks Offsets Initial Losses

We publish an update on our Maritime Model Portfolio. Our earlier model portfolio updates can be found...

Drewry Maritime Financial Research

What Happens in Vegas...Goes to the White House (Hillary 2, Trump 1...Game Over!)

A Hillary victory would benefit Thai markets in terms of TIP market re-allocations and export strength, while hurting us on global stability....

Athaporn Arayasantiparb, CFA

DMER - LPG Shipping - Headwinds to Persist in FY17

Strong supply growth on account of high vessel deliveriesscheduled in FY16/FY17 will continue to keep the LPG shipping market in imbalance. On the...

Drewry Maritime Financial Research

Hometown New York: Hillary 1, Trump 0

Two New Yorkers who would be the future President of America debated in a world-stopping match at the home state today, and most would agree that...

Athaporn Arayasantiparb, CFA

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