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>Westports’ bottom line was driven by strong earnings growth until a big portion of transhipment volumes migrated to Singapore due to CMA CGM setting in motion its two Asian hub strategies in 2017. The current commercial and capacity constraints and the new world of shipping alliance makes for an unlikely scenario where Westports could boost its profitability by winning new customers. We expect Malaysian ports to register better container volume growth due to the growing South-East Asian economy as well as the increase in Ocean Alliance calls. However, the volume growth momentum is unlikely to last; the base grows bigger since the transhipment volume loss in 1H17. We value the stock as Neutral with medium risk.</p>

Westports’ bottom line was driven by strong earnings growth until a big portion of transhipment volumes migrated to Singapore due to CMA CGM setting in motion its two Asian hub strategies in 2017. The current commercial and capacity constraints and the new world of shipping alliance makes for an unlikely scenario where Westports could boost its profitability by winning new customers. We expect Malaysian ports to register better container volume growth due to the growing South-East Asian economy as well as the increase in Ocean Alliance calls. However, the volume growth momentum is unlikely to last; the base grows bigger since the transhipment volume loss in 1H17. We value the stock as Neutral with medium risk.

Westports: Retained Neutral, Riding a Wave of Volume Recovery

Westports Holdings

Westports: Retained Neutral, Riding a Wave of Volume Recovery