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)

<p>Financial performances of port operators came under the double-edged sword of weak macro and protectionist trade practices. As such, volume throughput growth expectations did not materialise in 2018 due to weakening demand. Drewry expects an uptick of 4.1% in 2019 despite cautious investor confidence in the port sector as sentiments are dented by weakening throughput. The rates of return from the port sector are waning as the sector grapples with subdued financial performances. We expect a price recovery in 2019 as current risks to trade are absorbed by the market easing up PE ratios in 2019. The price-earnings gap between Drewry Port Index (DPI) and the MSCI EM Index remained volatile at 5-37%, implying that the sentiment-driven share prices are out of touch with port fundamentals.</p>

Financial performances of port operators came under the double-edged sword of weak macro and protectionist trade practices. As such, volume throughput growth expectations did not materialise in 2018 due to weakening demand. Drewry expects an uptick of 4.1% in 2019 despite cautious investor confidence in the port sector as sentiments are dented by weakening throughput. The rates of return from the port sector are waning as the sector grapples with subdued financial performances. We expect a price recovery in 2019 as current risks to trade are absorbed by the market easing up PE ratios in 2019. The price-earnings gap between Drewry Port Index (DPI) and the MSCI EM Index remained volatile at 5-37%, implying that the sentiment-driven share prices are out of touch with port fundamentals.

Hamburger Hafen und Logistik AG (HHFA GR)

Santos Brasil Participacoes Sa. (STBP11 BZ)

Drewry Ports Outlook 2019- Trade Concerns Keep Investor Appetite in Check