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)

<ul><li>Global throughput strengthened in 2017, with Drewry Maritime Research revising upwards the year-on-year growth from 5.5% to 6.0%. While the pace is likely to moderate, Drewry expects a flow of 775m teu in 2018, representing 4.3% over the projected volume in 2017. Modest port capacity addition is expected to lift utilisation above 70% by 2021.</li><li>The valuation premium of the Drewry Port Index to the MSCI Emerging Markets Index was about 15%-20% for a substantial period in 2017, continuing to trade in the range, while growth investors re-examine the earnings momentum of ports.</li><li>Our high conviction long pick is GLPR on a resurgent Russian economy that benefits the largest port operator directly. On the flip side, our high-conviction short is Santos Brasil. Notwithstanding the macroeconomic upturn, the intense port competition and the piling pressure to expand amid overcapacity are likely to strain Santos Brasil’s balance sheet in FY18e.</li></ul>

Global throughput strengthened in 2017, with Drewry Maritime Research revising upwards the year-on-year growth from 5.5% to 6.0%. While the pace is likely to moderate, Drewry expects a flow of 775m teu in 2018, representing 4.3% over the projected volume in 2017. Modest port capacity addition is expected to lift utilisation above 70% by 2021.The valuation premium of the Drewry Port Index to the MSCI Emerging Markets Index was about 15%-20% for a substantial period in 2017, continuing to trade in the range, while growth investors re-examine the earnings momentum of ports.Our high conviction long pick is GLPR on a resurgent Russian economy that benefits the largest port operator directly. On the flip side, our high-conviction short is Santos Brasil. Notwithstanding the macroeconomic upturn, the intense port competition and the piling pressure to expand amid overcapacity are likely to strain Santos Brasil’s balance sheet in FY18e.

Ports Outlook - Modest Earnings Growth in 2018

Equity Bottom-Up

Hamburger Hafen und Logistik AG / Equity Bottom-Up

Firm outlook with competent results: Hamburger Hafen und Logistiks AG (HHLA) presented a strong 2Q17 report card that allows the German terminal operator to maintain its full-year profit guidance, despite provisioning a substantial chunk of earnings for restructuring. PATMI almost quintupled to EUR 25.6m, from EUR 5.3m registered in the same period last year. Management raised the lower bound of full-year earnings guidance by EUR 10m to between EUR 135m and EUR 155m.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/032/001/original/HHLA%201.jpg?1503296518" class="editor-image img-responsive" data-smartkarma-image-id="32001"></figure><div class="content-caption">Profitability and yield</div>…

Firm outlook with competent results: Hamburger Hafen und Logistiks AG (HHLA) presented a strong 2Q17 report card that allows the German terminal operator to maintain its full-year profit guidance, despite provisioning a substantial chunk of earnings for restructuring. PATMI almost quintupled to EUR 25.6m, from EUR 5.3m registered in the same period last year. Management raised the lower bound of full-year earnings guidance by EUR 10m to between EUR 135m and EUR 155m.Profitability and yield…

HHLA 2Q17 – Storage Earnings Buoy Valuation

Hamburger Hafen Und Logistiks AG (HHLA) - Earnings Priced In, Maintain Neutral<ul><li>
Earnings in line with forecast:Hamburger Hafen und Logistiks AG (HHLA) reported a decent set of 1Q17 results, with management optimistic of hitting the upper range of full-year guidance. We have projected bullish assumptions that were met by the latest results, taking cues from the stable trading environment since 3Q16 and a resurgent Baltic volume. Revenue climbed 7.1% y/y from EUR 284.8m to EUR 305.1m on throughput…</li></ul>

Hamburger Hafen Und Logistiks AG (HHLA) - Earnings Priced In, Maintain Neutral
Earnings in line with forecast:Hamburger Hafen und Logistiks AG (HHLA) reported a decent set of 1Q17 results, with management optimistic of hitting the upper range of full-year guidance. We have projected bullish assumptions that were met by the latest results, taking cues from the stable trading environment since 3Q16 and a resurgent Baltic volume. Revenue climbed 7.1% y/y from EUR 284.8m to EUR 305.1m on throughput…

Hamburger Hafen Und Logistiks AG (HHFA GR) - Earnings Priced In, Maintain Neutral

Global Ports Investments / Equity Bottom-Up

Uncovering The Baltic Gem-Global Ports Investments (GLPR) Vs Hamburger Hafen Und Logistiks AG (HHLA)Baltic companies under our coverage – Global Ports Investments (GLPR) and Hamburger Hafen und Logistiks AG (HHLA) – had a tumultuous first quarter, cresting one-year highs before tumbling nearly 20% in the past one month. Russia’s Federal Antimonopoly Services (FAS) found the country’s largest port operator guilty of price fixing. Its counterpart in Germany presented a disappointing set of results…

Uncovering The Baltic Gem-Global Ports Investments (GLPR) Vs Hamburger Hafen Und Logistiks AG (HHLA)Baltic companies under our coverage – Global Ports Investments (GLPR) and Hamburger Hafen und Logistiks AG (HHLA) – had a tumultuous first quarter, cresting one-year highs before tumbling nearly 20% in the past one month. Russia’s Federal Antimonopoly Services (FAS) found the country’s largest port operator guilty of price fixing. Its counterpart in Germany presented a disappointing set of results…

Uncovering The Baltic Gem-Global Ports Investments (GLPR) Vs Hamburger Hafen Und Logistiks AG (HHLA)

Hamburger Hafen Und Logistiks AG (HHFA GR) - Attractive Dividend on the Cards<ul><li>
3Q16 inorganic income surprises:Hamburger Hafen und Logistiks AG (HHLA) boosted its full-year outlook following a strong 3Q16 performance. Revenue accelerated 4.8% y/y from EUR 283.8m to EUR 297.5m, supported by throughput increase in terminal operations and intermodal transportation. HHLA terminals saw a meaningful uptick in volumes, as most of the 5.6% y/y throughput gain to 1.7m teu was driven by Baltic trade…</li></ul>

Hamburger Hafen Und Logistiks AG (HHFA GR) - Attractive Dividend on the Cards
3Q16 inorganic income surprises:Hamburger Hafen und Logistiks AG (HHLA) boosted its full-year outlook following a strong 3Q16 performance. Revenue accelerated 4.8% y/y from EUR 283.8m to EUR 297.5m, supported by throughput increase in terminal operations and intermodal transportation. HHLA terminals saw a meaningful uptick in volumes, as most of the 5.6% y/y throughput gain to 1.7m teu was driven by Baltic trade…

Hamburger Hafen Und Logistiks AG (HHFA GR) - Attractive Dividend on the Cards

Germany

Hamburger Hafen und Logistik AG (HHLA) provides services to the port in the European North Range.  The Company's container terminals, transport systems, and logistic services provide a network between overseas port and European hinterland.

Hamburger Hafen und Logistik AG (HHFA GR)

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Hamburger Hafen und Logistik AG (HHFA GR)

Ports Outlook - Modest Earnings Growth in 2018

Global throughput strengthened in 2017, with Drewry Maritime Research revising upwards the year-on-year growth from 5.5% to 6.0%. While the pace...

Drewry Maritime Financial Research

HHLA 2Q17 – Storage Earnings Buoy Valuation

Firm outlook with competent results: Hamburger Hafen und Logistiks AG (HHLA) presented a strong 2Q17 report card that allows the German terminal...

Drewry Maritime Financial Research

Hamburger Hafen Und Logistiks AG (HHFA GR) - Earnings Priced In, Maintain Neutral

Hamburger Hafen Und Logistiks AG (HHLA) - Earnings Priced In, Maintain Neutral Earnings in line with forecast:Hamburger Hafen und Logistiks AG...

Drewry Maritime Financial Research

Uncovering The Baltic Gem-Global Ports Investments (GLPR) Vs Hamburger Hafen Und Logistiks AG (HHLA)

Uncovering The Baltic Gem-Global Ports Investments (GLPR) Vs Hamburger Hafen Und Logistiks AG (HHLA)Baltic companies under our coverage – Global...

Drewry Maritime Financial Research

Hamburger Hafen Und Logistiks AG (HHFA GR) - Attractive Dividend on the Cards

Hamburger Hafen Und Logistiks AG (HHFA GR) - Attractive Dividend on the Cards 3Q16 inorganic income surprises:Hamburger Hafen und Logistiks AG...

Drewry Maritime Financial Research

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