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)

United states Industrials / Thematic (Sector/Industry)

Zhuzhou CRRC Times Electric Co., Ltd. (3898 HK)

I would direct readers to our thematic pieces earlier this year, (<a href="https://www.smartkarma.com/insights/shipping-has-to-become-boring-again" target="_blank">https://www.smartkarma.com/insights/shipping-has-to-become-boring-again</a>) and (<a href="https://www.smartkarma.com/insights/deja-vu-they-are-throwing-in-the-towel" target="_blank">https://www.smartkarma.com/insights/deja-vu-they-are-throwing-in-the-towel</a>). We at DMER believe the long-awaited normalisation process has already begun in the dry bulk shipping; even as we highlight that recovery will be slow, but the time to be permanently bearish on the sector has passed. In our view th e normalisation provides opportunity over the next two years. <ul><li>Supply-side rationalisation the key theme of 2016-18</li><li>Capital is getting very very scarce </li><li>Pessimism is at its peak</li><li>Shipping is out of favour and nowhere on investors radar</li><li>Speculative money is throwing in the towel</li><li>Serious and patient capital is deploying</li><li>Finally, the excesses I talked about earlier are being worked-out </li><li>Next 12-18 months will be a big transition period </li><li>The time is coming to get back in, as shipping is finally becoming boring again</li></ul>We are not overtly bullish but we do see value in the sector in the current markets. It is important to note that finally, the sector is becoming a supply-side story rather than demand, which was the case for much of the last decade.

I would direct readers to our thematic pieces earlier this year, (https://www.smartkarma.com/insights/shipping-has-to-become-boring-again) and (https://www.smartkarma.com/insights/deja-vu-they-are-throwing-in-the-towel). We at DMER believe the long-awaited normalisation process has already begun in the dry bulk shipping; even as we highlight that recovery will be slow, but the time to be permanently bearish on the sector has passed. In our view th e normalisation provides opportunity over the next two years. Supply-side rationalisation the key theme of 2016-18Capital is getting very very scarce Pessimism is at its peakShipping is out of favour and nowhere on investors radarSpeculative money is throwing in the towelSerious and patient capital is deployingFinally, the excesses I talked about earlier are being worked-out Next 12-18 months will be a big transition period The time is coming to get back in, as shipping is finally becoming boring againWe are not overtly bullish but we do see value in the sector in the current markets. It is important to note that finally, the sector is becoming a supply-side story rather than demand, which was the case for much of the last decade.    

Shanghai Electric Group Company (601727 CH)

China Railway Construction Corp (1186 HK)

China Communications Construction (1800 HK)

Cssc Offshore & Marine Engg Group (317 HK)

Shanghai International Airport (600009 CH)

Metallurgical Corporation Of China Ltd (601618 CH)

Shanghai Electric Group Company (2727 HK)

Metallurgical Corporation of China Ltd (1618 HK)

Shanghai International Port Group (600018 CH)

Beijing Originwater Technology Co,Ltd. (300070 CH)

Dry Bulk Shipping - Turning Neutral as Normalisation Takes Hold