Transport Sector, China and Asia-focused Research

Charles De Trenck

Equity Bottom-Up

Pacific Basin Shipping / Equity Bottom-Up

A boring passive ship owner stock like <a href="https://www.smartkarma.com/entities/21069" target="_blank" data-smartkarma-citation="entities:21069:1">Diana Shipping Inc (DSX US)</a>  exploded to the upside last week. There were some upgrades. And there were stories of Force Majeure in Australia affecting things like coal as a result of heavy rains. <a href="https://www.smartkarma.com/entities/929" target="_blank" data-smartkarma-citation="entities:929:1">Pacific Basin Shipping Ltd (2343 HK)</a> also put out 1Q17 Trading Results, which point to break-even levels for the company. The stock jumped the day after the data release.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/023/924/original/Pac%20Basin%201%20Q17.PNG?1491779511" class="editor-image img-responsive" data-smartkarma-image-id="23924"></figure>Source: Pacific BasinIn fact, Pac Basin over-shot a little to the upside above HK$1.9 levels…

A boring passive ship owner stock like Diana Shipping Inc (DSX US)  exploded to the upside last week. There were some upgrades. And there were stories of Force Majeure in Australia affecting things like coal as a result of heavy rains. Pacific Basin Shipping Ltd (2343 HK) also put out 1Q17 Trading Results, which point to break-even levels for the company. The stock jumped the day after the data release.Source: Pacific BasinIn fact, Pac Basin over-shot a little to the upside above HK$1.9 levels…

A Breakthrough in Bulk Last Week – and Some of the Drivers

The 2-day 7% correction in oil managed to slaughter many cyclicals, from RIG, which had just gotten a big buy send-off from Barron’s two weeks ago, to transport names across the board. Containers, of course have little to do with oil price directly.  A little over a month ago, I had updated my generally negative view of last year on Seaspan. <a href="https://www.smartkarma.com/entities/23596" target="_blank" data-smartkarma-citation="entities:23596:1">Seaspan Corp. (SSW US)</a> had been, and is still, a leader in its field. But the negatives were that it had massively outperformed the sector while having its…

The 2-day 7% correction in oil managed to slaughter many cyclicals, from RIG, which had just gotten a big buy send-off from Barron’s two weeks ago, to transport names across the board. Containers, of course have little to do with oil price directly.  A little over a month ago, I had updated my generally negative view of last year on Seaspan. Seaspan Corp. (SSW US) had been, and is still, a leader in its field. But the negatives were that it had massively outperformed the sector while having its…

Oil Correction Drags Down Commodity Plays, Transports… and Takes Seaspan Back to Lows

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.

DFRS Dry Bulk Shipping - Street Catching up to the Rally Now, Driven Solely by Momentum We were early buyers on the Dry Bulk sector upgrading the sector middle of last year. In our last year updates, we had said that recovery in dry bulk stocks will be led by investors accepting that there is indeed a sector normalization in play and sheer dislike and under-ownership will see the stocks gain and also provide a floor for the rally to build. <a href="https://www.smartkarma.com/insights/dmer-dry-bulk-shipping-under-owned-normalization-leading-to-investor-sentiment-turning-bullish" target="_blank">https://www.smartkarma.com/insights/dmer-dry-bulk-shippi</a>…

DFRS Dry Bulk Shipping - Street Catching up to the Rally Now, Driven Solely by Momentum We were early buyers on the Dry Bulk sector upgrading the sector middle of last year. In our last year updates, we had said that recovery in dry bulk stocks will be led by investors accepting that there is indeed a sector normalization in play and sheer dislike and under-ownership will see the stocks gain and also provide a floor for the rally to build. https://www.smartkarma.com/insights/dmer-dry-bulk-shippi…

DFRS Dry Bulk Shipping - Street Catching up to the Rally Now, Driven Solely by Momentum

Orient Overseas International / Equity Bottom-Up

Don’t get me wrong. I still like <a href="https://www.smartkarma.com/entities/801" target="_blank" data-smartkarma-citation="entities:801:1">Orient Overseas Intl Ltd (316 HK)</a>, OOIL/OOCL, as an operator long term. Always have. And I may come back at another price or time. But there are a few issues worth drawing out, now that analysts have gone gaga over shipping – including notably <a href="https://www.smartkarma.com/entities/286" target="_blank" data-smartkarma-citation="entities:286:1">China COSCO Holdings (H) (1919 HK)</a> which is at some 3x OOIL on a P/B and which still is not fit for long term investing. I list my reasons in selling OOIL in easy bullets further below.OOIL was at HK$30 when I bought and…

Don’t get me wrong. I still like Orient Overseas Intl Ltd (316 HK), OOIL/OOCL, as an operator long term. Always have. And I may come back at another price or time. But there are a few issues worth drawing out, now that analysts have gone gaga over shipping – including notably China COSCO Holdings (H) (1919 HK) which is at some 3x OOIL on a P/B and which still is not fit for long term investing. I list my reasons in selling OOIL in easy bullets further below.OOIL was at HK$30 when I bought and…

Why I Just Sold Orient Overseas (OOIL) At HK$45

Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Thematic (Sector/Industry)

Extending my point about more demanding transportation frameworks going forward (see <a href="https://www.smartkarma.com/insights/comfortdelgro-fy16-results-an-era-where-competition-hits-a-higher-gear" target="_blank" data-smartkarma-citation="insights:8719">ComfortDelGro FY16 Results: An Era Where Competition Hits a Higher Gear</a> ), the recent fire-bomb attack on Hong Kong’s MTR that left 19 injured signals increasing costs for transport operators. This article presents another reason why investors should sell MTR Corp, on top of points already provided by fellow insight provider Sameer Taneja in an earlier piece <a href="https://www.smartkarma.com/insights/mtr-66-hk-conviction-sell-thesis" target="_blank" data-smartkarma-citation="insights:7982">MTR (66 HK): Conviction Sell Thesis</a><h2>Security Costs to</h2>…

Extending my point about more demanding transportation frameworks going forward (see ComfortDelGro FY16 Results: An Era Where Competition Hits a Higher Gear ), the recent fire-bomb attack on Hong Kong’s MTR that left 19 injured signals increasing costs for transport operators. This article presents another reason why investors should sell MTR Corp, on top of points already provided by fellow insight provider Sameer Taneja in an earlier piece MTR (66 HK): Conviction Sell ThesisSecurity Costs to…

66 HK and SBUS SP: Attack on HK Metro Signals Increases in Transport Operators' Costs

Hong Kong

Chu Kong Shipping Enterprises (Group) Company Limited provides shipping and cargo handling services between Hong Kong and China.  The Company's services include freight forwarding, wharf cargo handling, cargo consolidation, warehouse storage, and trucking.  Chu Kong Shipping also provides container hauling services.

Chu Kong Shipping Enterprises(Grp) (560 HK)

Dafeng Port Heshun Technology Co Ltd provides integrated logistics for freight services. The Company focuses on land and ocean freight services, air freight forwarding services, and operation equipment rental services. Gamme Logistics offers its services primarily between Hong Kong and the Pearl River Delta region.

Kerry Logistics Network Limited provides logistics services in Asia and internationally. The Company offers integrated logistics services, as well as leases warehousing space in Hong Kong and provides international freight forwarding services.

Jinhui Holdings Company Limited, through its subsidiaries, operates ship chartering and ship leasing businesses. The Company also provides trading services and invests in properties.

Shenzhen International Holdings Limited operates as a holding company. The Company, through its subsidiaries, provides investment, construction, and operation of logistic infrastructure facilities, as well as offers value-added logistic services. Shenzhen International serves customers worldwide.

COSCO Shipping Ports Limited, through its subsidiaries, provides shipping container leasing services worldwide.  The Company also operates container terminals and provides container handling, storage, transportation and management services, as well as depot handling and stevedoring services.

Yuexiu Transport Infrastructure Ltd., through its subsidiaries, invests in, develops, operates, and manages toll highways, expressways, and bridges in China.

Yuexiu Transport Infrastructure (1052 HK)

COSCO SHIPPING International (Hong Kong) Co., Ltd. provides shipping related services. The Company offers shipping, logistics, shipbuilding and ship repair services, ship trading agency services, marine insurance brokerage services, marine equipment and spare parts, coating products, and marine fuel and other related shipping products. COSCO International serves clients around the world.

Transport International Holdings Ltd, through its subsidiaries, operates both franchised and non-franchised public buses in Hong Kong. The Company also provides media sales services.

Transport International Holdings Ltd (62 HK)

Tianjin Port Development Holdings Limited operates container terminals in China.  The company provides container handling operations, stacking and warehousing services and non-containerized cargo services.

Cosco Shipping Development Co., Ltd is a container shipping company based in China.  The Company owns, charters, and operates container vessels for the provision of international and domestic container marine transportation services.

Shipping Corporation of India Limited owns, operates and manages a fleet of bulk carriers, international container service, liquid/dry bulk service, tankers, passenger vessels and offshore supply vessels. The Company's fleet transports primarily crude oil.

U-Ming Marine Transport Corporation operates in the tramp shipping business. The Company mainly ships bulk raw materials such as iron ore, coal, grains, and cement.

Pan Ocean Co., Ltd. is a Korean shipping company that engages in marine transportation business. The Company provides bulk cargo carrier, pure car and truck carrier, container and tanker services.

Wisdom Marine Lines Company Ltd. transports freight by ship.  The Company operates bulk carriers, loggers, tweendeckers, multipurpose ships, roll-on and roll-offs, and container ships.

Hainan Strait Shipping Co., Ltd. offers domestic coastal passenger and cargo marine transportation services.

Cosco Shipping Specialised Carriers Co. provides marine and coastal freight transportation services.  The Company also operates in wholesale and retail trading, acts as a shipping agency, as well as provides loading and unloading, storage, and labor services.

Cosco Shipping Specialised Carriers  (600428 CH)

D/S Norden A/S is an international shipping company.  The Company operates a fleet of modern bulk vessels and tankers consisting of company owned vessels and long-term and short-term chartered cargo ships.  D/S Norden transports commodities such as coal, fertilizer, grain, sugar, and steels, as well as crude oil and other liquids.  The Company operates worldwide.

Clarkson PLC provides integrated shipping services, The Company provides shipbroking, ship management, financial services, fund management and property services.  Clarkson operates throughout the world.

Wilh. Wilhelmsen Holding ASA provides shipping services.  The Company offers global car and ro-ro customers sea transportation and integrated logistic solutions from factory to dealer through its operating companies.

Pacific Basin Shipping Limited, through its subsidiaries, provides marine transportation services and logistical support to its customers through the commercial operation of a large, modern, and uniformly-sized fleet of shallow-draft Handysize dry bulk carriers.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Pacific Basin Shipping (2343 HK)

A Breakthrough in Bulk Last Week – and Some of the Drivers

A boring passive ship owner stock like Diana Shipping Inc (DSX US) exploded to the upside last week. There were some upgrades. And there were...

Charles De Trenck

Oil Correction Drags Down Commodity Plays, Transports… and Takes Seaspan Back to Lows

The 2-day 7% correction in oil managed to slaughter many cyclicals, from RIG, which had just gotten a big buy send-off from Barron’s two weeks ago,...

Charles De Trenck

DFRS Dry Bulk Shipping - Street Catching up to the Rally Now, Driven Solely by Momentum

DFRS Dry Bulk Shipping - Street Catching up to the Rally Now, Driven Solely by Momentum We were early buyers on the Dry Bulk sector upgrading...

Drewry Maritime Financial Research

Why I Just Sold Orient Overseas (OOIL) At HK$45

Don’t get me wrong. I still like Orient Overseas Intl Ltd (316 HK), OOIL/OOCL, as an operator long term. Always have. And I may come back at...

Charles De Trenck

66 HK and SBUS SP: Attack on HK Metro Signals Increases in Transport Operators' Costs

Extending my point about more demanding transportation frameworks going forward (see ComfortDelGro FY16 Results: An Era Where Competition Hits a...

Valerie Law, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)