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

<p>The non-container segment is expected to grow further expanding 7.7% in revenues in 2019. In line with expected growth in the non-containerised segment, we believe net profit will increase by 8.5% in 2019. The company will keep dividends to 40% of its net profit in 2019. While the company is expected to continue consolidating in the aftermaths of tariff reduction in 2018,  escalation of the US-China trade conflict is a key risk to our 2019 outlook. Tianjin is expected to strengthen the feeder service in the Bohai Rim region and expand in the inland dry ports while proactively respond to change in the structure of the ore transportation business. Our DCF-derived fair value of HKD 1.14 implies a forward FY19e PE of 8.1x. Although Tianjin Port Development is cheaper than our DPI average, the underlying drivers justify the valuation discount. The operating margin of the trading business, at 2.2%, is near the breakeven point, while the tug boat business and non-containerised cargoes weigh on profitability. </p>

The non-container segment is expected to grow further expanding 7.7% in revenues in 2019. In line with expected growth in the non-containerised segment, we believe net profit will increase by 8.5% in 2019. The company will keep dividends to 40% of its net profit in 2019. While the company is expected to continue consolidating in the aftermaths of tariff reduction in 2018,  escalation of the US-China trade conflict is a key risk to our 2019 outlook. Tianjin is expected to strengthen the feeder service in the Bohai Rim region and expand in the inland dry ports while proactively respond to change in the structure of the ore transportation business. Our DCF-derived fair value of HKD 1.14 implies a forward FY19e PE of 8.1x. Although Tianjin Port Development is cheaper than our DPI average, the underlying drivers justify the valuation discount. The operating margin of the trading business, at 2.2%, is near the breakeven point, while the tug boat business and non-containerised cargoes weigh on profitability. 

Tianjin: Terminal Expansion Offers Insignificant Upside