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

Orient Overseas International / Equity Bottom-Up

We downgrade our rating for OOIL to Neutral. Our new fair value of HKD 32 is close to the current trading price of HKD 31.50 with a P/B of 0.5x. The company has been our preferred player in the container shipping sector and can still deliver better earnings than its peers supported by its effective management. However, we are concerned that the slowing economic growth in China and macroeconomic uncertainties are likely to prolong weakness in container freight rates. Based on below par 1Q16 performance, we are sceptical if OOIL will be able to outperform its peers this year given the current industry downturn. We, therefore, revise our rating for OOIL to Neutral.

We downgrade our rating for OOIL to Neutral. Our new fair value of HKD 32 is close to the current trading price of HKD 31.50 with a P/B of 0.5x. The company has been our preferred player in the container shipping sector and can still deliver better earnings than its peers supported by its effective management. However, we are concerned that the slowing economic growth in China and macroeconomic uncertainties are likely to prolong weakness in container freight rates. Based on below par 1Q16 performance, we are sceptical if OOIL will be able to outperform its peers this year given the current industry downturn. We, therefore, revise our rating for OOIL to Neutral.

Orient Overseas International Ltd (316 HK) - 1Q16 Operational Data Update; Downgrade to Neutral