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.

Equity Bottom-Up

Since our Long-Short initiation on 14 July 2016, our Long ICTSI (ICT PM) has profited 34%, while we were essentially flat on Short Westports (WPRTS MK). The trade has also outperformed DMER Port Index which was up 6.1% in the same period. <a href="https://www.smartkarma.com/insights/dmer-port-operators-long-ictsi-ictsi-pm-short-westports-wprts-pm" target="_blank">https://www.smartkarma.com/insights/dmer-port-operators-long-ictsi-ictsi-pm-short-westports-wprts-pm</a><ul><li>
On ICTSI, we believe investors have started recognising the significant upside potential from picking up the growth counter at the cheapest level post-GFC, and…</li></ul>

Since our Long-Short initiation on 14 July 2016, our Long ICTSI (ICT PM) has profited 34%, while we were essentially flat on Short Westports (WPRTS MK). The trade has also outperformed DMER Port Index which was up 6.1% in the same period. https://www.smartkarma.com/insights/dmer-port-operators-long-ictsi-ictsi-pm-short-westports-wprts-pm
On ICTSI, we believe investors have started recognising the significant upside potential from picking up the growth counter at the cheapest level post-GFC, and…

DMER - Port Operators - Update on Our Long ICTSI ( ICTSI PM), Short WESTPORTS (WPRTS MK)

Co-founder & Managing Director, Marketnomix 

Rajan Govil

Co-founder & Managing Director

Marketnomix 

Macroeconomics

Malaysia’s GDP grew 4% y-o-y in 2Q2016 compared to a 4.2% y-o-y rise in 1Q2016 – slowing for the sixth straight quarter. Final consumption contributed 4.1 percentage point (ppt) to GDP largely driven by private consumption while fixed capital formation contributed 1.7 ppt. Change in inventories and net exports detracted 1.2 ppt and 0.7 ppt respectively from GDP. Net exports detracted from overall GDP as imports grew at a faster pace than exports.On the supply side, growth continued to be driven…

Malaysia’s GDP grew 4% y-o-y in 2Q2016 compared to a 4.2% y-o-y rise in 1Q2016 – slowing for the sixth straight quarter. Final consumption contributed 4.1 percentage point (ppt) to GDP largely driven by private consumption while fixed capital formation contributed 1.7 ppt. Change in inventories and net exports detracted 1.2 ppt and 0.7 ppt respectively from GDP. Net exports detracted from overall GDP as imports grew at a faster pace than exports.On the supply side, growth continued to be driven…

Malaysia: Manufacturing and Services Drive GDP

Westports(WPRTS MK) - 2Q16 Results - Earnings Unsustainable<ul><li>Earnings growth momentum unfazed</li><li>Net operating cash per container softens</li><li>Unattractive dividend yield</li><li>Capacity glut in the Strait of Malacca</li><li>Northport to pose competition</li><li>Reiterating unattractive valuation</li></ul>

Westports(WPRTS MK) - 2Q16 Results - Earnings UnsustainableEarnings growth momentum unfazedNet operating cash per container softensUnattractive dividend yieldCapacity glut in the Strait of MalaccaNorthport to pose competitionReiterating unattractive valuation

Westports(WPRTS MK) - 2Q16 Results - Earnings Unsustainable

Westports Holdings Bhd -  Alliance switches allegiance, investors still holding onInternational Container Terminal Services Inc - Growth stock on discount, positioned for reboundWe formally introduce our key Long Short Trade with initiation of Long call on ICTSI ( ICTSI PM) and Short call on WESTPORTS (WPRTS PM). We have earlier highlighted our concerns on WPRTS at <a href="https://www.smartkarma.com/insights/westports-wprts-mk-unattractive-valuation-with-significant-downside-top-sell-in-the-ports-sector" target="_blank">https://www.smartkarma.com/insights/westports-wprts-mk-unattractive-valuation-with-significant-downside-top-sell-in-the-ports-sector</a> and our constructive stance on ICTSI <a href="https://www.smartkarma.com/insights/ictsi-ict-pm-positioned-for-emerging-market-rebound" target="_blank">https://www.smartkarma.com/insights/ictsi-ict-pm-positioned-for-emerging-market-rebound</a>.

Westports Holdings Bhd -  Alliance switches allegiance, investors still holding onInternational Container Terminal Services Inc - Growth stock on discount, positioned for reboundWe formally introduce our key Long Short Trade with initiation of Long call on ICTSI ( ICTSI PM) and Short call on WESTPORTS (WPRTS PM). We have earlier highlighted our concerns on WPRTS at https://www.smartkarma.com/insights/westports-wprts-mk-unattractive-valuation-with-significant-downside-top-sell-in-the-ports-sector and our constructive stance on ICTSI https://www.smartkarma.com/insights/ictsi-ict-pm-positioned-for-emerging-market-rebound. 

DMER - Port Operators - Long ICTSI ( ICTSI PM), Short WESTPORTS (WPRTS PM)

Unattractive Valuation with Significant Downside, Top Sell In The Ports Sector<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/009/203/original/wp4.JPG?1465870536" class="editor-image img-responsive" data-smartkarma-image-id="9203"></figure>Our Westports pick to underperform came up against us by 8%, as investor sentiment improved on 1) surprise transhipment volume increase in 1Q2016 and, 2) strengthening of MYR against USD. However, we maintain that the macro headwinds persist, along with the uncertainty of alliance shuffling that could detract the volume momentum since 2015.<ul><li>
Alliance reshuffling may detract volume from the largest terminal operator in…</li></ul>

Unattractive Valuation with Significant Downside, Top Sell In The Ports SectorOur Westports pick to underperform came up against us by 8%, as investor sentiment improved on 1) surprise transhipment volume increase in 1Q2016 and, 2) strengthening of MYR against USD. However, we maintain that the macro headwinds persist, along with the uncertainty of alliance shuffling that could detract the volume momentum since 2015.
Alliance reshuffling may detract volume from the largest terminal operator in…

Westports(WPRTS MK) - Unattractive Valuation with Significant Downside, Top Sell In The Ports Sector

Malaysia

Westports Holdings Berhad provides port services. The Company offers container and cargo services, marine services, rental services and other ancillary services. Westports provides its services to the import and export industries.

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

Westports Holdings (WPRTS MK)

DMER - Port Operators - Update on Our Long ICTSI ( ICTSI PM), Short WESTPORTS (WPRTS MK)

Since our Long-Short initiation on 14 July 2016, our Long ICTSI (ICT PM) has profited 34%, while we were essentially flat on Short Westports (WPRTS...

Drewry Maritime Financial Research

Malaysia: Manufacturing and Services Drive GDP

Malaysia’s GDP grew 4% y-o-y in 2Q2016 compared to a 4.2% y-o-y rise in 1Q2016 – slowing for the sixth straight quarter. Final consumption...

Rajan Govil

Westports(WPRTS MK) - 2Q16 Results - Earnings Unsustainable

Westports(WPRTS MK) - 2Q16 Results - Earnings Unsustainable Earnings growth momentum unfazed Net operating cash per container softens Unattractive...

Drewry Maritime Financial Research

DMER - Port Operators - Long ICTSI ( ICTSI PM), Short WESTPORTS (WPRTS PM)

Westports Holdings Bhd - Alliance switches allegiance, investors still holding onInternational Container Terminal Services Inc - Growth stock on...

Drewry Maritime Financial Research

Westports(WPRTS MK) - Unattractive Valuation with Significant Downside, Top Sell In The Ports Sector

Unattractive Valuation with Significant Downside, Top Sell In The Ports SectorOur Westports pick to underperform came up against us by 8%, as...

Drewry Maritime Financial Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)