Pan-Asia Equity Bottom-up, Wickhams Hill

Lloyd Moffatt

I am a fundamental-value investment analyst with a bent for events and soft catalysts.

During my time on both the buy-side and sell-side I focussed on small and mid-cap companies in ASEAN, Australia and HK/China.

Although a generalist, my background as an engineer lends itself toward deep-dive research in more practical sectors like consumer and industrials.

Previous recommendations include:

Concepcion Industrial		(CIC PM)	BUY	03/12/2015		+100.1%
OSIM International		(OSIM SP)	BUY	11/12/2015		+36.9%
Bellamy's Australia Ltd	(BAL AU)	SELL	08/06/2016		+60%
Pryce Corp				(PPC PM)	BUY	14/07/2016		+105%
Rukun Raharja			(RAJA IJ)	BUY	16/02/2017		+61%
Asian Pay Television Trust (APTT SP)	BUY	30/12/2016		+67%

Pan-Asia Equity Bottom-up

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Qinhuangdao Port Co Ltd H / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/3064" target="_blank" data-smartkarma-citation="entities:3064:1">Qinhuangdao Port Co Ltd H (3369 HK)</a> is the largest coal terminal in the Bohai Rim and, because of its connection to major Daqin and Shanhua rail infrastructure, is well positioned to benefit from the recent policy push to shift the transport of coal and bulk commodities from road to rail;
The company is rapidly deleveraging following their investment in additional capacity at Huanghua and Caofeidian ports, that will be fully utilised by this policy tailwind and see a sharp rise in free-cash-flow; and,
The company has an implied yield of 6.7% for FY18 based on a historical payout ratio of just 40%. However, with no further capacity expansion plans, there is scope for this to materially increase to be more in-line with free cash flow, which for FY18/19 we estimate to be HKD 0.35, implying a more than 20% FCF yield.

Qinhuangdao Port Co Ltd H (3369 HK) is the largest coal terminal in the Bohai Rim and, because of its connection to major Daqin and Shanhua rail infrastructure, is well positioned to benefit from the recent policy push to shift the transport of coal and bulk commodities from road to rail;
The company is rapidly deleveraging following their investment in additional capacity at Huanghua and Caofeidian ports, that will be fully utilised by this policy tailwind and see a sharp rise in free-cash-flow; and,
The company has an implied yield of 6.7% for FY18 based on a historical payout ratio of just 40%. However, with no further capacity expansion plans, there is scope for this to materially increase to be more in-line with free cash flow, which for FY18/19 we estimate to be HKD 0.35, implying a more than 20% FCF yield.

Qinhuangdao Port (3369.HK) To Benefit from “Road to Rail” Policy