HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

Singamas Container Holdings / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-international-marine-cntnrs-gp-ltd" target="_blank" data-smartkarma-citation="entities:11752:1" rel="noopener">China International Marine Cntnrs Gp (2039 HK)</a>'s positive profit alert suggested a very solid performance for <a href="https://www.smartkarma.com/entities/singamas-container-holdings" target="_blank" data-smartkarma-citation="entities:13602:1" rel="noopener">Singamas Container Holdings (716 HK)</a> in 4Q24. </li>
<li>Annualising Singamas' 1H24 earnings for the full year will mean a 78% profit surge in 2H24, but this is still conservative - CIMC's 2H24 profit leaped 93x YoY.</li>
<li>Trading on 6x PER, versus CIMC's 10.3x, the stock is cheap. Net cash equals 86% of market capitalisation, potentially providing a yield higher than the 8.8% currently projected.</li>
</ul>



China International Marine Cntnrs Gp (2039 HK)'s positive profit alert suggested a very solid performance for Singamas Container Holdings (716 HK) in 4Q24. 
Annualising Singamas' 1H24 earnings for the full year will mean a 78% profit surge in 2H24, but this is still conservative - CIMC's 2H24 profit leaped 93x YoY.
Trading on 6x PER, versus CIMC's 10.3x, the stock is cheap. Net cash equals 86% of market capitalisation, potentially providing a yield higher than the 8.8% currently projected.


Singamas (716 HK): Further Positive Indications from CIMC Profit Alert

<ul>
<li>With its share price returning to HK$0.68 level, the investment value of <a href="https://www.smartkarma.com/entities/singamas-container-holdings" target="_blank" data-smartkarma-citation="entities:13602:1" rel="noopener">Singamas Container Holdings (716 HK)</a> has re-emerged.</li>
<li>Its competitor, CIMC, has just issued a positive profit alert, indicating an impressive 888.7% and 317.3% growth in reported and recurring earnings, which is positive for Singamas.</li>
<li>An 11% growth in the global containership fleet in FY24 is also beneficial to the company. Its net cash of HK$1.65bn equals 1.02x its market capitalisation.</li>
</ul>


With its share price returning to HK$0.68 level, the investment value of Singamas Container Holdings (716 HK) has re-emerged.
Its competitor, CIMC, has just issued a positive profit alert, indicating an impressive 888.7% and 317.3% growth in reported and recurring earnings, which is positive for Singamas.
An 11% growth in the global containership fleet in FY24 is also beneficial to the company. Its net cash of HK$1.65bn equals 1.02x its market capitalisation.


Singamas (716 HK): Positive Readthrough from CIMC

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

AP Moeller - Maersk A/S / Equity Bottom-Up

<ul>
<li>Maersk's Q125 results slightly beat expectations, but earnings momentum continues to wane</li>
<li>Financial guidance for FY25 unchanged, but there are notable tweaks to key assumptions</li>
<li>Q125 likely carriers' best financial period of FY25 (by far), profits set to erode rest of year</li>
</ul>


Maersk's Q125 results slightly beat expectations, but earnings momentum continues to wane
Financial guidance for FY25 unchanged, but there are notable tweaks to key assumptions
Q125 likely carriers' best financial period of FY25 (by far), profits set to erode rest of year


Maersk Q125 Results: Solid Q1 Numbers | But Mgmt Retains Negative View on FY25, Citing Uncertainty

Orient Overseas International / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/orient-overseas-international" target="_blank" data-smartkarma-citation="entities:801:1" rel="noopener">Orient Overseas International (316 HK)</a> sits on decent yields of 12% for FY24 and 9.6% for FY25. Its net cash (66.2% of the share price) can support such dividends.</li>
<li>Despite the retreat from the recent peak, the spot freight rates are 9.7% and 145% higher than 1H24 and 2H23 respectively, pointing to better 2H24 earnings.</li>
<li>Operationally, it recorded the first YoY realised rate increase in 2Q24 after 6 quarters of consecutive decline. Its load factor also grew 2.3pp YoY in the quarter.</li>
</ul>



Orient Overseas International (316 HK) sits on decent yields of 12% for FY24 and 9.6% for FY25. Its net cash (66.2% of the share price) can support such dividends.
Despite the retreat from the recent peak, the spot freight rates are 9.7% and 145% higher than 1H24 and 2H23 respectively, pointing to better 2H24 earnings.
Operationally, it recorded the first YoY realised rate increase in 2Q24 after 6 quarters of consecutive decline. Its load factor also grew 2.3pp YoY in the quarter.


Orient Overseas Intl (316 HK): Don't Overlook Its Yield, Backed by Net Cash

<ul>
<li>
<a href="https://www.smartkarma.com/entities/singamas-container-holdings" target="_blank" data-smartkarma-citation="entities:13602:1" rel="noopener">Singamas Container Holdings (716 HK)</a> is interesting in that it has a net cash of US$300m (HK$2.35bn), but its market capitalisation is only HK$1.5bn. </li>
<li>This is a possible privatisation candidate given the steep discount to cash. The thin trading volume made it difficult to function as a financing platform.</li>
<li>Business-Wise, it should have passed the trough as global container box plant utilisation is expected to improve in the next two years, driving profitability recovery.</li>
</ul>



Singamas Container Holdings (716 HK) is interesting in that it has a net cash of US$300m (HK$2.35bn), but its market capitalisation is only HK$1.5bn. 
This is a possible privatisation candidate given the steep discount to cash. The thin trading volume made it difficult to function as a financing platform.
Business-Wise, it should have passed the trough as global container box plant utilisation is expected to improve in the next two years, driving profitability recovery.


Singamas (716 HK): Net Cash 1.6x of Market Cap, Why Not Privatise?

Hong Kong

Singamas Container Holdings Limited, through its subsidiaries, manufactures containers and related parts, operates container depot businesses, and provides container storage, repair and trucking as well as mid-stream services.

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Singamas Container Holdings (716 HK)

Singamas (716 HK): Further Positive Indications from CIMC Profit Alert

Singamas announced an FY24 positive profit alert, expecting a net profit of at least US$30m, with 54.3% YoY growth. The key reasons are strong...

Osbert Tang, CFA

Singamas (716 HK): Positive Readthrough from CIMC

Singamas‘ investment value has returned as its competitor reports impressive 3Q24 profit growth. Global containership fleet growth will drive...

Osbert Tang, CFA

Maersk Q125 Results: Solid Q1 Numbers | But Mgmt Retains Negative View on FY25, Citing Uncertainty

Maersk reported solid Q1 results on Thursday in Copenhagen, and its downbeat FY25 guidance is unchanged. That guidance implies a dramatic erosion...

Tracking Traffic

Orient Overseas Intl (316 HK): Don't Overlook Its Yield, Backed by Net Cash

Supported by net cash, OOIL offers attractive yields of 12% and 9.6% for FY24 and FY25. Improving operational performance points to a positive 2H24...

Osbert Tang, CFA

Singamas (716 HK): Net Cash 1.6x of Market Cap, Why Not Privatise?

Singamas presents a potential privatisation opportunity with a significant cash surplus compared to the market cap. Business outlook is improving...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

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Singamas (716 HK): Further Positive Indications from CIMC Profit Alert

Singamas announced an FY24 positive profit alert, expecting a net profit of at least US$30m, with 54.3% YoY growth. The key reasons are strong...

Osbert Tang, CFA

Singamas (716 HK): Positive Readthrough from CIMC

​Singamas‘ investment value has returned as its competitor reports impressive 3Q24 profit growth. Global containership fleet growth will drive...

Osbert Tang, CFA

Maersk Q125 Results: Solid Q1 Numbers | But Mgmt Retains Negative View on FY25, Citing Uncertainty

Maersk reported solid Q1 results on Thursday in Copenhagen, and its downbeat FY25 guidance is unchanged. That guidance implies a dramatic erosion...

Tracking Traffic

Orient Overseas Intl (316 HK): Don't Overlook Its Yield, Backed by Net Cash

Supported by net cash, OOIL offers attractive yields of 12% and 9.6% for FY24 and FY25. Improving operational performance points to a positive 2H24...

Osbert Tang, CFA

Singamas (716 HK): Net Cash 1.6x of Market Cap, Why Not Privatise?

​Singamas presents a potential privatisation opportunity with a significant cash surplus compared to the market cap. Business outlook is improving...

Osbert Tang, CFA

Singamas‘ investment value has returned as its competitor reports impressive 3Q24 profit growth. Global containership fleet growth will drive...

Singamas presents a potential privatisation opportunity with a significant cash surplus compared to the market cap. Business outlook is improving...