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)

2015: Investors catch a falling knife disguised as pocket of value<img src="https://static-prod.smartkarma.com/images/media/000/004/981/original/Price%20Performance.JPG?1452658223" class="editor-image img-responsive" data-smartkarma-image-id="4981"> Source: Bloomberg, DMER<ul>
<li>Investors suffered massive wealth erosion in 2015, as share prices of dry bulk companies kept tumbling during the year. DMER’s shipping index, which is based on the market cap of leading dry bulk companies, was down ~43% in 2015.</li>
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Dry bulk owners were confronted with weak shipping demand because of the slowdown in Chinese economy, which resulted in huge losses. BDI touched record lows of 415 at the onset of…</li>
</ul>

2015: Investors catch a falling knife disguised as pocket of value Source: Bloomberg, DMER
Investors suffered massive wealth erosion in 2015, as share prices of dry bulk companies kept tumbling during the year. DMER’s shipping index, which is based on the market cap of leading dry bulk companies, was down ~43% in 2015.

Dry bulk owners were confronted with weak shipping demand because of the slowdown in Chinese economy, which resulted in huge losses. BDI touched record lows of 415 at the onset of…


Dry Bulk Shipping - 2016 - Falling Knife Disguised as Pocket of Value ?

Transport Sector, China and Asia-focused Research

Charles De Trenck

As a response to my note yesterday on where we are in energy's long bottoming out process, we had a good long reply from a long time energy transport industry executive, who kindly shared his feedback and insight. Further detailed below.&nbsp;

As a response to my note yesterday on where we are in energy's long bottoming out process, we had a good long reply from a long time energy transport industry executive, who kindly shared his feedback and insight. Further detailed below.&nbsp;

Further Insight on History of Big Misses in Oil and Energy (Long Response)

The Horrible Very Bad Day for MLPs and Energy... The Story ContinuesThe rebound/sell-off pattern is exactly as expected so far. The amplitudes appear a little greater than anticipated, but on the whole they are not surprising given the years of commodities rallies we experienced on the back of China and easy central bank money. Back on 29 Sept in my note &ldquo;Commodities: The Harder They Come, The Harder They Fall...&rdquo; the main message was be ready to trade the carnage, within an overall classic pattern. This followed an earlier note on the Horrible things that awaited MLPs I wrote back around 6 August.We got these trades, and flagged the trimming of positions that was needed in some of the names we picked. In August it made sense to expect that MLPs were looking bad and we should wait for blood on the streets. And we saw panic selling again in September before rebounds... and in the last week-- sheer panic selling. What follows is a quick review of issues/drivers, especially lessons we have seen in past, and what we can expect going forward.

The Horrible Very Bad Day for MLPs and Energy... The Story ContinuesThe rebound/sell-off pattern is exactly as expected so far. The amplitudes appear a little greater than anticipated, but on the whole they are not surprising given the years of commodities rallies we experienced on the back of China and easy central bank money. Back on 29 Sept in my note &ldquo;Commodities: The Harder They Come, The Harder They Fall...&rdquo; the main message was be ready to trade the carnage, within an overall classic pattern. This followed an earlier note on the Horrible things that awaited MLPs I wrote back around 6 August.We got these trades, and flagged the trimming of positions that was needed in some of the names we picked. In August it made sense to expect that MLPs were looking bad and we should wait for blood on the streets. And we saw panic selling again in September before rebounds... and in the last week-- sheer panic selling. What follows is a quick review of issues/drivers, especially lessons we have seen in past, and what we can expect going forward.

Understanding the Trading Pattern in Energy Related (And the Poor Industry Forecasting Skills)

Our theme has been to expect some mergers in container equipment and transport equipment owners. NOL and Chinese carriers are also exploring options, as discussed in last few months. But today we have a live deal between Triton and TAL Int'l Group which will create the largest container lessor through a "merger of equals". Let's review a few more points and issues.

Our theme has been to expect some mergers in container equipment and transport equipment owners. NOL and Chinese carriers are also exploring options, as discussed in last few months. But today we have a live deal between Triton and TAL Int'l Group which will create the largest container lessor through a "merger of equals". Let's review a few more points and issues.

Container Equipment Mergers Here: TAL Int'l to Merge with Triton

Information Technology Consultant

Ishita Jain

Airbus and Boeing, the powerhouses of the aircraft manufacturing industry and the largest duopoly in the world, shared revenues of $407.5 billion in 2014. As the fight for market share trudges along, it is a battle of nerves and steel (or carbon fiber in this matter). The airlines industry today is dynamic and competitive, investing in cost-saving measures rapidly. How are these two manufacturing giants coping up? Let us take a look.

Airbus and Boeing, the powerhouses of the aircraft manufacturing industry and the largest duopoly in the world, shared revenues of $407.5 billion in 2014. As the fight for market share trudges along, it is a battle of nerves and steel (or carbon fiber in this matter). The airlines industry today is dynamic and competitive, investing in cost-saving measures rapidly. How are these two manufacturing giants coping up? Let us take a look.

Flying through turbulent or clear skies: An analysis on Airbus & Boeing

United States

Huntington Ingalls Industries, Inc. (HII) designs, builds, and maintains nuclear and non-nuclear ships for the United States Navy and Coast Guard. The Company also provides after-market services for military ships worldwide. HII consists of two primary business divisions, Newport News Shipbuilding and Ingalls Shipbuilding.

BWX Technologies, Inc. supplies nuclear components and fuel to the U.S. government. The Company offers precision manufactured components and services for the commercial nuclear power industry. BWX Technologies also provides technical, management, and site services to support governments in the operation of complex facilities and environmental remediation activities.

Curtiss-Wright Corporation designs, manufactures, and overhauls precision components and systems. The Company's systems provides engineered services to the aerospace, automotive, shipbuilding, oil, petrochemical, agricultural equipment, power generation, metal working, and fire and rescue industries.

Axon Enterprise, Inc. is a public safety technology company. The Company offers law enforcement, military, and self defense solutions. Axon Enterprise serves customers worldwide.

HEICO Corporation designs, manufactures, and sells aerospace products and services through its subsidiaries. The Company's customers include airlines and airmotive, as well as defense contractors and military agencies worldwide, including the United States Air Force, the United States Navy, and the National Aeronautics & Space Administration (NASA).

Teledyne Technologies Inc. provides electronic subsystems and instrumentation. The Company provides aerospace and defense electronics, digital imaging products & software, monitoring instrumentation for marine & environmental applications, harsh environment interconnect products, and subsystems for satellite communications.  Teledyne also provides engineered systems.

Moog Inc. manufactures precision motion control components and systems. The Company's actuation products control military and commercial aircraft, satellites and space vehicles, missiles, launch vehicles, automated industrial machinery, and medical equipment.

Hexcel Corporation develops, manufactures, and markets reinforcement products, composite materials, and engineered products.  The Company's products are used in the commercial aerospace, space and defense, electronics, general industrial, and recreation markets for a variety of end products.  Hexcel operates around the world.

Kratos Defense & Security Solutions, Inc. operates as a defense contractor and security systems integrator for the federal government and for state and local agencies. The Company offers services in weapon systems lifecycle support, military weapon range, security and surveillance systems, IT engineering, etc.

AeroVironment, Inc. designs, develops, and produces small unmanned aircraft and fast charge systems for electric industrial vehicle batteries. The Company offers long range tracking antenna, sensors, and missile systems. AeroVironment markets its products in the United States.

Hanwha Aerospace Co., Ltd. operates as an aircraft parts manufacturing company. The Company produces and sells aircraft gas turbine engine products, aircraft compressors, low pressure turbines, and other products. Hanwha Aerospace markets its products worldwide.

ST Engineering is a global technology, defence and engineering group with offices across Asia, Europe, the Middle East and the U.S., serving customers in more than 100 countries. The Group uses technology and innovation to solve real-world problems and improve lives through its diverse portfolio of businesses across the aerospace, smart city, defence and public security segments. Headquartered in Singapore, ST Engineering reported revenue of $7.9b in FY2019 and it ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index, MSCI Singapore, iEdge SG ESG Transparency Index and iEdge SG ESG Leaders Index.

AECC Aviation Power Co. Ltd. manufactures and distributes aerospace products. The Company produces aircraft power devices, aerospace turbines, aerospace engines, and other products. AECC Aviation Power also provides equipment testing, equipment maintenance, and other services.


AVIC Shenyang Aircraft Company Limited manufactures aviation products. The Company mainly develops, produces, and sells aircrafts. AVIC Shenyang Aircraft also offers foreign investment, electronic products development, and other services.

AVIC Aircraft Co., Ltd. manufactures large and mid size aircraft components and aluminum materials. The Company primarily contracts and produces vertical stable board, horizontal stable board, front inspection door for Boeing 737, and components for Boeing 747 and ATR-42. AVIC Aircraft also produces decorating materials and automobile parts.

Leonardo SpA operates as a technology company. The Company provides its services to the aerospace, defense, and security sectors globally. Leonardo works on helicopters, aircrafts, aerostructures, airborne and space systems, land and naval defense electronics, and defense systems.

MTU Aero Engines AG develops and manufactures engines and offers commercial engine services and support.  The Company sells to manufacturers and operators of engines and industrial gas turbines across the world.

Melrose Industries PLC operates as a global aerospace business. The Company acquires and holds securities of under performing businesses primarily in the manufacturing sector.

Kongsberg Gruppen ASA develops, manufactures and markets high-technology aerospace and defense products, as well as systems for armed forces in Norway and other countries.  The Company produces anti-ship missiles, launchers, missile control systems, weapon control systems, and maritime and air traffic surveillance systems.

Saab AB is a high technology company.  The Company develops, manufactures, and delivers advanced products for the defense market.  Saab's operations include defense technology, command and control systems, military and commercial aircraft, and technical services, as well as missiles, space equipment, and aviation services.  The Company sells and markets its products internationally.

Textron Inc. is a global, multi-industry company with operations in aircraft, defense, industrial products, and finance.  The Company's products include airplanes, helicopters, weapons, and automotive products. Textron's finance division offers asset based lending, aviation, distribution, golf, and resort finance, as well as structured capital.

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Textron Inc (TXT US)

Dry Bulk Shipping - 2016 - Falling Knife Disguised as Pocket of Value ?

2015: Investors catch a falling knife disguised as pocket of value Source: Bloomberg, DMER Investors suffered massive wealth erosion in 2015, as...

Drewry Maritime Financial Research

Further Insight on History of Big Misses in Oil and Energy (Long Response)

As a response to my note yesterday on where we are in energy's long bottoming out process, we had a good long reply from a long time energy...

Charles De Trenck

Container Equipment Mergers Here: TAL Int'l to Merge with Triton

Our theme has been to expect some mergers in container equipment and transport equipment owners. NOL and Chinese carriers are also exploring...

Charles De Trenck

Flying through turbulent or clear skies: An analysis on Airbus & Boeing

Airbus and Boeing, the powerhouses of the aircraft manufacturing industry and the largest duopoly in the world, shared revenues of $407.5 billion...

Ishita Jain

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Dry Bulk Shipping - 2016 - Falling Knife Disguised as Pocket of Value ?

2015: Investors catch a falling knife disguised as pocket of value Source: Bloomberg, DMER Investors suffered massive wealth erosion in 2015, as...

Drewry Maritime Financial Research

Further Insight on History of Big Misses in Oil and Energy (Long Response)

As a response to my note yesterday on where we are in energy's long bottoming out process, we had a good long reply from a long time energy...

Charles De Trenck

Understanding the Trading Pattern in Energy Related (And the Poor Industry Forecasting Skills)

The Horrible Very Bad Day for MLPs and Energy... The Story ContinuesThe rebound/sell-off pattern is exactly as expected so far. The amplitudes...

Charles De Trenck

Container Equipment Mergers Here: TAL Int'l to Merge with Triton

Our theme has been to expect some mergers in container equipment and transport equipment owners. NOL and Chinese carriers are also exploring...

Charles De Trenck

Flying through turbulent or clear skies: An analysis on Airbus & Boeing

Airbus and Boeing, the powerhouses of the aircraft manufacturing industry and the largest duopoly in the world, shared revenues of $407.5 billion...

Ishita Jain