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)

<p><strong>Supply-demand balance still delicate, but better than last two years.</strong> The balance between supply and demand is still wafer-thin, which has had its impact, despite the peak season being underway. Our latest numbers suggest that the peak season freight rate growth is expected to be moderate this year. On the Asia-Europe trade, the late summer lull in shipments was a headwind, while the Transpacific still suffers the overhang of excess supply. In addition, massive factory closure in China…</p>

Supply-demand balance still delicate, but better than last two years. The balance between supply and demand is still wafer-thin, which has had its impact, despite the peak season being underway. Our latest numbers suggest that the peak season freight rate growth is expected to be moderate this year. On the Asia-Europe trade, the late summer lull in shipments was a headwind, while the Transpacific still suffers the overhang of excess supply. In addition, massive factory closure in China…

Container Shipping - A Rising Tide Floats All Boats

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Equity Bottom-Up

Kerry Logistics Network / Equity Bottom-Up

<p>Last week <a href="https://www.smartkarma.com/entities/367" target="_blank" data-smartkarma-citation="entities:367:1">Kerry Logistics Network Ltd (636 HK)</a> reported a disappointing set of H1 results that reinforce our growing concerns about its lack of focus. The results also suggest the company's recent acquisitions in International Freight Forwarding in the US and EU have failed to add much, if anything, to KLN's bottom line.</p><h2>90% of H1 Turnover Growth in Low-margin Freight Forwarding</h2><p>KLN reported impressive Turnover growth of 31% in H1, but over 90% of that increase came from the company's…</p>

Last week Kerry Logistics Network Ltd (636 HK) reported a disappointing set of H1 results that reinforce our growing concerns about its lack of focus. The results also suggest the company's recent acquisitions in International Freight Forwarding in the US and EU have failed to add much, if anything, to KLN's bottom line.90% of H1 Turnover Growth in Low-margin Freight ForwardingKLN reported impressive Turnover growth of 31% in H1, but over 90% of that increase came from the company's…

Kerry Logistics Network: Still Struggling to Convert Revenue Growth into Higher Profits in H1

<h2>Overview</h2><p>Since <a href="https://www.smartkarma.com/entities/18689" target="_blank" data-smartkarma-citation="entities:18689:1">Hanjin Shipping Co Ltd (117930 KS)</a> declared bankruptcy at the end of August 2016, market conditions in long-haul container shipping have improved substantially. The removal of Hanjin's capacity (and it's aggressive pricing tactics) combined with a modest improvement in demand led to a strong improvement in freight rates in most long-haul markets since the end of Q3 last year. In addition, a series of recent mergers and acquisitions in the sector, plus new carrier alliances that…</p>

OverviewSince Hanjin Shipping Co Ltd (117930 KS) declared bankruptcy at the end of August 2016, market conditions in long-haul container shipping have improved substantially. The removal of Hanjin's capacity (and it's aggressive pricing tactics) combined with a modest improvement in demand led to a strong improvement in freight rates in most long-haul markets since the end of Q3 last year. In addition, a series of recent mergers and acquisitions in the sector, plus new carrier alliances that…

Evergreen, Yang Ming Q217 Results Show Sharp Recovery Since Hanjin Bankruptcy in Q316; Now What?

<p>We're closing out our Long <a href="https://www.smartkarma.com/entities/15428" target="_blank" data-smartkarma-citation="entities:15428:1">Evergreen Marine Corp Ltd (2603 TT)</a> / Short <a href="https://www.smartkarma.com/entities/20645" target="_blank" data-smartkarma-citation="entities:20645:1">Eva Airways Corp (2618 TT)</a> pair trade idea as Evergreen has surpassed our target price of NS$16.00 per share. </p><p>We first proposed the Long Evergreen / Short EVA pair idea in our December 2016 note <a href="https://www.smartkarma.com/insights/the-trump-call-may-see-taiwan-airlines-hurt-short-eva-against-long-position-in-evergreen-marine" target="_blank" data-smartkarma-citation="insights:7446">‘The Trump Call’ May See Taiwan Airlines Hurt; Short EVA Against Long Position in Evergreen Marine</a>. At that time we expected Evergreen to significantly outperform its airline affiliate EVA, which we believed would suffer the brunt of…</p>

We're closing out our Long Evergreen Marine Corp Ltd (2603 TT) / Short Eva Airways Corp (2618 TT) pair trade idea as Evergreen has surpassed our target price of NS$16.00 per share. We first proposed the Long Evergreen / Short EVA pair idea in our December 2016 note ‘The Trump Call’ May See Taiwan Airlines Hurt; Short EVA Against Long Position in Evergreen Marine. At that time we expected Evergreen to significantly outperform its airline affiliate EVA, which we believed would suffer the brunt of…

Closing Evergreen / EVA Airways Long-Short Pair Trade Idea After Evergreen Exceeds Our Target Price

<p>On Friday, May 12th, <a href="https://www.smartkarma.com/entities/15428" target="_blank" data-smartkarma-citation="entities:15428:1">Evergreen Marine Corp Ltd (2603 TT)</a> reported unaudited Q1 2017 earnings results, which showed a dramatic year-over-year improvement but also sequential improvement compared to Q4 2016. The following table summarizes Evergreen's results in Q1 2017, Q1 2016, and Q4 2016.  </p><table class="table table-striped"><tbody>
<tr>
<td><strong>Q1 2017</strong></td>
<td><strong>Q1 2016</strong></td>
<td><strong>Q4 2016</strong></td>
</tr>
<tr>
<td>Revenue, NT$ mn</td>
<td>33,839</td>
<td>28,604</td>
<td>34,195</td>
</tr>
<tr>
<td>Gross margin, %</td>
<td>6.23%</td>
<td>-9.34%</td>
<td>2.17%</td>
</tr>
<tr>
<td>Operating margin, %</td>
<td>1.94%</td>
<td>-14.37%</td>
<td>-2.11%</td>
</tr>
<tr>
<td>Net profit (loss), NT$ mn</td>
<td>169</td>
<td>(4,588)</td>
<td>(1,107)</td>
</tr>
</tbody></table><p><em>Source: Evergreen Marine</em></p><p>Last quarter's gross…</p>

On Friday, May 12th, Evergreen Marine Corp Ltd (2603 TT) reported unaudited Q1 2017 earnings results, which showed a dramatic year-over-year improvement but also sequential improvement compared to Q4 2016. The following table summarizes Evergreen's results in Q1 2017, Q1 2016, and Q4 2016.  

Q1 2017
Q1 2016
Q4 2016


Revenue, NT$ mn
33,839
28,604
34,195


Gross margin, %
6.23%
-9.34%
2.17%


Operating margin, %
1.94%
-14.37%
-2.11%


Net profit (loss), NT$ mn
169
(4,588)
(1,107)

Source: Evergreen MarineLast quarter's gross…

Evergreen Marine Q1 Earnings Show a Strong Recovery; Struggling Yang Ming Continues to Lag

Taiwan

Evergreen Marine Corp. (Taiwan) Ltd. transports freight by ships. The Company operates container ships to move freight throughout the world. Evergreen Marine has interests in terminals, airline operations and motor freight transportation, as well as container manufacturing.

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Evergreen Marine Corp (2603 TT)

Container Shipping - A Rising Tide Floats All Boats

Supply-demand balance still delicate, but better than last two years. The balance between supply and demand is still wafer-thin, which has had its...

Drewry Maritime Financial Research

Kerry Logistics Network: Still Struggling to Convert Revenue Growth into Higher Profits in H1

Last week Kerry Logistics Network Ltd (636 HK) reported a disappointing set of H1 results that reinforce our growing concerns about its lack of...

Daniel Hellberg

Evergreen, Yang Ming Q217 Results Show Sharp Recovery Since Hanjin Bankruptcy in Q316; Now What?

OverviewSince Hanjin Shipping Co Ltd (117930 KS) declared bankruptcy at the end of August 2016, market conditions in long-haul container shipping...

Daniel Hellberg

Closing Evergreen / EVA Airways Long-Short Pair Trade Idea After Evergreen Exceeds Our Target Price

We're closing out our Long Evergreen Marine Corp Ltd (2603 TT) / Short Eva Airways Corp (2618 TT) pair trade idea as Evergreen has surpassed our...

Daniel Hellberg

Evergreen Marine Q1 Earnings Show a Strong Recovery; Struggling Yang Ming Continues to Lag

On Friday, May 12th, Evergreen Marine Corp Ltd (2603 TT) reported unaudited Q1 2017 earnings results, which showed a dramatic year-over-year...

Daniel Hellberg

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