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

Hutchison Port Holdings Trust / Equity Bottom-Up

<p>Hong Kong’s unique status as pure transhipment and barge-ship transhipment hub is slipping away more quickly than expected with shifting liner shipping dynamics amid the ongoing US-China trade war and rising self-sufficiency of Chinese ports to serve their own hinterland. HPHT has shed volumes in what appears to be an irreversible trend and something that cannot be countered with efficiency drives at the terminals. We believe the bottom line has suffered in recent years due to volume weakness and the turnaround is largely dependent on growth outside of Hong Kong. HPHT’s lofty ambitions saw it amassing hefty leverage which it is curtailing by adapting a disciplined repayment plan. The company’s stock trades at the lowest EV/EBITDA trailing twelve months (TTM) discount to its peers which underscores the stock’s neutral stance in an otherwise unimpressive basket of Chinese peers.</p>

Hong Kong’s unique status as pure transhipment and barge-ship transhipment hub is slipping away more quickly than expected with shifting liner shipping dynamics amid the ongoing US-China trade war and rising self-sufficiency of Chinese ports to serve their own hinterland. HPHT has shed volumes in what appears to be an irreversible trend and something that cannot be countered with efficiency drives at the terminals. We believe the bottom line has suffered in recent years due to volume weakness and the turnaround is largely dependent on growth outside of Hong Kong. HPHT’s lofty ambitions saw it amassing hefty leverage which it is curtailing by adapting a disciplined repayment plan. The company’s stock trades at the lowest EV/EBITDA trailing twelve months (TTM) discount to its peers which underscores the stock’s neutral stance in an otherwise unimpressive basket of Chinese peers.

HPH Trust- No Plain Sailing for HPHT Amid Trade War Uncertainties