In today’s briefing:
- Pacific Basin (2343 HK): Looking for a 2H24 Upturn
- Maersk Q224 Results | Strangely, Danish Container Giant Saw Limited Gains From Higher Spot Rates
Pacific Basin (2343 HK): Looking for a 2H24 Upturn
- Pacific Basin Shipping (2343 HK) may realise at least US$60m of revenue, or around 10% higher total TCE, in 2H24, based on its solid forward vessel coverage.
- Sustained re-routing of vessels due to Middle East tension and higher demand from China due to fixed asset spending are supportive of rates. FFA is now 3-4% higher than spot.
- The stock is inexpensive at 9.7x PER and 0.8x P/B, and its 7.6% dividend yield is attractive. A solid balance sheet also means an upside on the payout ratio.
Maersk Q224 Results | Strangely, Danish Container Giant Saw Limited Gains From Higher Spot Rates
- Despite rising spot rates, Maersk Q224 revenue and EBITDA both fell Y/Y
- After lifting pessimistic guidance in June, Maersk upped FY24 targets again
- We believe Maersk probably moved to limit spot exposure a year ago
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