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)

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…

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

Institutional investors have long shied away from owning <a href="https://www.smartkarma.com/entities/15428" target="_blank" data-smartkarma-citation="entities:15428:1">Evergreen Marine Corp Ltd (2603 TT)</a> for two reasons unrelated to the container shipping sector's chronically weak earnings:<ol><li>Concerns about potential conflicts of interest between the Listco and its founding family</li><li>A Group structure that is perceived to be opaque or at least unnecessarily complex</li></ol>In this note we strive to show that investor concerns about potential conflicts and a lack of transparency are misplaced. We believe the interests of the Listco (Evergreen Marine Corp., or EMC) and its founding family are closely aligned, and EMC's earnings results seem to bear this out. Furthermore, a bit of digging shows that the basic Group structure is in fact quite uncomplicated, and the improvement in Taiwan's reporting standards over the years means that investors can obtain a clear picture of the EMC's financial status every quarter.We believe EMC is unjustifiably cheap relative to some of its closest Asian peers. At its current price, EMC presents an attractive way to play a recovery in the rapidly consolidating container shipping industry. We have set a target price of NT$16 per share and recommend investors buy EMC on dips.

Institutional investors have long shied away from owning Evergreen Marine Corp Ltd (2603 TT) for two reasons unrelated to the container shipping sector's chronically weak earnings:Concerns about potential conflicts of interest between the Listco and its founding familyA Group structure that is perceived to be opaque or at least unnecessarily complexIn this note we strive to show that investor concerns about potential conflicts and a lack of transparency are misplaced. We believe the interests of the Listco (Evergreen Marine Corp., or EMC) and its founding family are closely aligned, and EMC's earnings results seem to bear this out. Furthermore, a bit of digging shows that the basic Group structure is in fact quite uncomplicated, and the improvement in Taiwan's reporting standards over the years means that investors can obtain a clear picture of the EMC's financial status every quarter.We believe EMC is unjustifiably cheap relative to some of its closest Asian peers. At its current price, EMC presents an attractive way to play a recovery in the rapidly consolidating container shipping industry. We have set a target price of NT$16 per share and recommend investors buy EMC on dips. 

Evergreen Marine: Not Really So Complex After All, & Cheap on EV/Capacity

Orient Overseas International / Equity Bottom-Up

A series of announced mergers and acquisitions in the global container shipping industry will soon pare the industry down to six large global carriers, plus a handful of smaller global and regional carriers, and a very large number of mostly insignificant regional and niche carriers. Clearly, the sector’s long-overdue consolidation has gained momentum over the last six months, and despite a recent jump in spot rates, we believe the recent wave of deals will soon force a response from the remaining 'leftover' carriers, who must either act to quickly gain neede scale through financial combinations or find ways to reduce exposure to chronic overcapacity in long-haul container shipping segments.In this note we look at the strategic responses available to five different small- to mid-sized Asian container carriers, four of which are listed in Hong Kong and Taiwan. We lay out the criteria we use to evaluate potential transactions within the sector, and profile these five carriers -- their histories, strengths, and needs. Based on these criteria and our understanding of these five carriers’ needs, we then suggest a few potential combinations that seem to make the most strategic and financial sense.

A series of announced mergers and acquisitions in the global container shipping industry will soon pare the industry down to six large global carriers, plus a handful of smaller global and regional carriers, and a very large number of mostly insignificant regional and niche carriers. Clearly, the sector’s long-overdue consolidation has gained momentum over the last six months, and despite a recent jump in spot rates, we believe the recent wave of deals will soon force a response from the remaining 'leftover' carriers, who must either act to quickly gain neede scale through financial combinations or find ways to reduce exposure to chronic overcapacity in long-haul container shipping segments.In this note we look at the strategic responses available to five different small- to mid-sized Asian container carriers, four of which are listed in Hong Kong and Taiwan. We lay out the criteria we use to evaluate potential transactions within the sector, and profile these five carriers -- their histories, strengths, and needs. Based on these criteria and our understanding of these five carriers’ needs, we then suggest a few potential combinations that seem to make the most strategic and financial sense.

Surging Momentum of Consolidation Will Soon Force Response from Asia's 'Leftover' Container Carriers

<h2>Hyundai Merchant Marine (011200 KS)- HMM to Piggyback on 2M Network</h2>Executives at Hyundai Merchant Marine will get a much needed break after what has been a near-death experience, <a href="https://www.smartkarma.com/insights/hyundai-merchant-marine-011200-ks-how-will-the-endgame-play-out" target="_blank">https://www.smartkarma.com/insights/hyundai-merchant-marine-011200-ks-how-will-the-endgame-play-out</a>, <a href="https://www.smartkarma.com/insights/hyundai-merchant-marine-011200-ks-pulls-back-from-bankruptcy" target="_blank">https://www.smartkarma.com/insights/hyundai-merchant-marine-011200-ks-pulls-back-from-bankruptcy</a> &amp; <a href="https://www.smartkarma.com/insights/hyundai-merchant-marine-011200-ks-gets-a-lifeline" target="_blank">https://www.smartkarma.com/insights/hyundai-merchant-marine-011200-ks-gets-a-lifeline</a>One of the final pieces of the…

Hyundai Merchant Marine (011200 KS)- HMM to Piggyback on 2M NetworkExecutives at Hyundai Merchant Marine will get a much needed break after what has been a near-death experience, https://www.smartkarma.com/insights/hyundai-merchant-marine-011200-ks-how-will-the-endgame-play-out, https://www.smartkarma.com/insights/hyundai-merchant-marine-011200-ks-pulls-back-from-bankruptcy &amp; https://www.smartkarma.com/insights/hyundai-merchant-marine-011200-ks-gets-a-lifelineOne of the final pieces of the…

Hyundai Merchant Marine (011200 KS)- HMM to Piggyback on 2M Network

Transport Sector, China and Asia-focused Research

Charles De Trenck

In the real physical world, not the sometimes Potemkin land of equities, industries like container shipping continue to struggle. <a href="https://www.smartkarma.com/entities/22428" target="_blank" data-smartkarma-citation="entities:22428:1">AP Moeller - Maersk A/S (MAERSKB DC)</a>  and <a href="https://www.smartkarma.com/entities/801" target="_blank" data-smartkarma-citation="entities:801:1">Orient Overseas Intl Ltd (316 HK)</a>  are certainly equity players that survive and fare better than most, even as they face their own challenges.Maersk shares are basically flat over 12 months after digesting lower earnings and a further breakout of divisions. OOIL shares are down some 20%, following a short-lived 25+% trading…

In the real physical world, not the sometimes Potemkin land of equities, industries like container shipping continue to struggle. AP Moeller - Maersk A/S (MAERSKB DC)  and Orient Overseas Intl Ltd (316 HK)  are certainly equity players that survive and fare better than most, even as they face their own challenges.Maersk shares are basically flat over 12 months after digesting lower earnings and a further breakout of divisions. OOIL shares are down some 20%, following a short-lived 25+% trading…

Hanjin's Long Tail, and Real World Fallout … and a Window from Triton Container Presentation Deck

South Korea

HMM Co., Ltd. provides marine transportation services.  The Company commands different types of vessels including full container vessels, oil tankers, car carriers, LNG carriers, bulk carriers, and tramps.

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HMM Co., Ltd. (011200 KS)

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

Evergreen Marine: Not Really So Complex After All, & Cheap on EV/Capacity

Institutional investors have long shied away from owning Evergreen Marine Corp Ltd (2603 TT) for two reasons unrelated to the container shipping...

Daniel Hellberg

Surging Momentum of Consolidation Will Soon Force Response from Asia's 'Leftover' Container Carriers

A series of announced mergers and acquisitions in the global container shipping industry will soon pare the industry down to six large global...

Daniel Hellberg

Hyundai Merchant Marine (011200 KS)- HMM to Piggyback on 2M Network

Hyundai Merchant Marine (011200 KS)- HMM to Piggyback on 2M NetworkExecutives at Hyundai Merchant Marine will get a much needed break after what...

Drewry Maritime Financial Research

Hanjin's Long Tail, and Real World Fallout … and a Window from Triton Container Presentation Deck

In the real physical world, not the sometimes Potemkin land of equities, industries like container shipping continue to struggle. AP Moeller -...

Charles De Trenck

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