Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul><li>How the EU’s new tariff hikes will affect China-made EVs</li><li>Hong Kong creates task force to investigate university management's escalating spat</li><li>Bankrupt Sichuan Trust seeks investors to bring business back</li></ul>

How the EU’s new tariff hikes will affect China-made EVsHong Kong creates task force to investigate university management's escalating spatBankrupt Sichuan Trust seeks investors to bring business back

CX Daily: How the EU’s New Tariff Hikes Will Affect China-Made EVs 

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

COSCO SHIPPING Energy Transportation / Index Rebalance

COSCO SHIPPING Energy Transportation (1138 HK)

<ul>
<li>The rally in the stock price over the last couple of months could result in <a href="https://www.smartkarma.com/entities/cosco-shipping-energy-tran-h" target="_blank" data-smartkarma-citation="entities:646:1" rel="noopener">Cosco Shipping Energy Transportation (1138 HK)</a> being added to a global index in May.</li>
<li>
<a href="https://www.smartkarma.com/entities/cosco-shipping-energy-tran-h" target="_blank" data-smartkarma-citation="entities:646:1" rel="noopener">Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK)</a> has outperformed its peers but still trades cheaper on comparable valuation metrics.</li>
<li>The <a href="https://www.smartkarma.com/entities/cosco-shipping-energy-transpor" target="_blank" data-smartkarma-citation="entities:29897:1" rel="noopener">COSCO SHIPPING Energy Transpor (600026 CH)</a> / <a href="https://www.smartkarma.com/entities/cosco-shipping-energy-tran-h" target="_blank" data-smartkarma-citation="entities:646:1" rel="noopener">Cosco Shipping Energy Transportation (1138 HK)</a> premium has jumped recently and could move lower in the short-term.</li>
</ul>


The rally in the stock price over the last couple of months could result in Cosco Shipping Energy Transportation (1138 HK) being added to a global index in May.

Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK) has outperformed its peers but still trades cheaper on comparable valuation metrics.
The COSCO SHIPPING Energy Transpor (600026 CH) / Cosco Shipping Energy Transportation (1138 HK) premium has jumped recently and could move lower in the short-term.


COSCO Shipping Energy (1138 HK): Global Index Inclusion & The A/H Premium

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

COSCO SHIPPING Energy Transportation / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cosco-shipping-energy-tran-h" target="_blank" data-smartkarma-citation="entities:646:1" rel="noopener">Cosco Shipping Energy (1138 HK)</a> has a significant 91.5% rally YTD. However, the market seems to have assumed that the current elevated VLCC rate is sustainable, and we doubt it.</li>
<li>Despite the attack on Iran and the paralysis of the Strait of Hormuz, history has taught us that such an outrageous rate level will normalise within a couple of months.  </li>
<li>Its 2x P/B is 4SD higher than the average since FY22. To justify it, the FY26 net profit needs to be 4.4x above the consensus - this is not possible. </li>
</ul>



Cosco Shipping Energy (1138 HK) has a significant 91.5% rally YTD. However, the market seems to have assumed that the current elevated VLCC rate is sustainable, and we doubt it.
Despite the attack on Iran and the paralysis of the Strait of Hormuz, history has taught us that such an outrageous rate level will normalise within a couple of months.  
Its 2x P/B is 4SD higher than the average since FY22. To justify it, the FY26 net profit needs to be 4.4x above the consensus - this is not possible. 


COSCO Shipping Energy (1138 HK): Is It Too Stretched?

Founder, Riedel Research

David Riedel

Founder

Independent equity research on GEM Markets

Riedel Research

Riedel provides equity research and analysis to leading financial organizations. By becoming members of a region (Asia, Latin America, Emerging Europe or Global), organizations have access to an integrated set of services including:

Regular company coverage reports
Up-to-date investment decision advice (buy, hold, sell)
Monthly regional and global conference calls
Customized company reports and unlimited on-line access to the program's services.

Riedel provides research coverage of companies across the full range of market capitalization. Experienced research professionals in each market develop company reports and analysis as well as earnings models and projections. Ratings are Buy, Hold and Sell with a focus on compelling investment ideas - both long and short. Downloadable, dynamic earnings models are built to facilitate sensitivity analysis.

Please feel free to contact us for complimentary access to our written research.  We want to show you that our unique research flow can add value and help develop a long-term, high value-add relationship.

Riedel's model focuses on providing clients with unique insights and consulting in addition to unlimited access to all produced research This model allows members to receive exponential benefits for their retainer fees.

Thematic (Sector/Industry)

Hungary: Faster earnings growth should drive GDP higher in coming months. Mexico: Expected to raise rates 50bps next Thursday in the wake of inflation reported this week at 5.3% (the highest rate in 8 years).  This is a critical positive development for the Peso. Saudi Arabia: Has the most to lose from lower prices as this complicates attempts to diversify their economy.  Iran is less concerned as they are just coming off of sanctions and any revenue they get is better than before.  Iraq would…

Hungary: Faster earnings growth should drive GDP higher in coming months. Mexico: Expected to raise rates 50bps next Thursday in the wake of inflation reported this week at 5.3% (the highest rate in 8 years).  This is a critical positive development for the Peso. Saudi Arabia: Has the most to lose from lower prices as this complicates attempts to diversify their economy.  Iran is less concerned as they are just coming off of sanctions and any revenue they get is better than before.  Iraq would…

Who Wins and Who Loses from Oil Under $50? Hint: Invest in Asia

Energy Expert

Thierry Bros, PhD

Thierrybros.com

Interesting article in the Financial Time (FT) on stock exchanges fighting for Saudi Aramco IPO <a href="https://www.ft.com/content/41af604e-0315-11e7-ace0-1ce02ef0def9" target="_blank">https://www.ft.com/content/41af604e-0315-11e7-ace0-1ce02ef0def9 </a>with the following conclusion "Saudi Aramco will initially list as much as 5% of the company and investors and analysts have questioned the size of Riyadh’s $2tn valuation. But even if it reaches just half that target it would still raise $50bn — twice as much as Alibaba’s record IPO in 2014."Back in <a href="https://www.smartkarma.com/insights/saudi-aramco-value-tn-maybe-not" target="_blank" data-smartkarma-citation="insights:8177">Saudi Aramco Value: $tn? Maybe Not!</a> my…

Interesting article in the Financial Time (FT) on stock exchanges fighting for Saudi Aramco IPO https://www.ft.com/content/41af604e-0315-11e7-ace0-1ce02ef0def9 with the following conclusion "Saudi Aramco will initially list as much as 5% of the company and investors and analysts have questioned the size of Riyadh’s $2tn valuation. But even if it reaches just half that target it would still raise $50bn — twice as much as Alibaba’s record IPO in 2014."Back in Saudi Aramco Value: $tn? Maybe Not! my…

New York and London Battle for Saudi Aramco IPO

China

China Merchants Energy Shipping Co., Ltd. mainly engages in the Ocean Shipping of Crude Oil and other energy sources such as Coal and Iron Ore. Through its subsidiary CLNG, the Company also provides the Ocean Shipping service of Liquefied Natural Gas.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
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China Merchants Energy A (601872 CH)

CX Daily: How the EU’s New Tariff Hikes Will Affect China-Made EVs

Tariffs / Caixin Explains: How the EU’s new tariff hikes will affect China-made EVs The European Union has decided to provisionally impose extra...

Caixin Global

COSCO Shipping Energy (1138 HK): Global Index Inclusion & The A/H Premium

Following a jump in the stock price, COSCO Shipping Energy could be added to a global index in May. The positioning and passive buying could lead...

Brian Freitas

COSCO Shipping Energy (1138 HK): Is It Too Stretched?

CSET's impressive YTD rally may be unsustainable as the market assumes elevated VLCC rates will continue, but history suggests otherwise. Its P/B...

Osbert Tang, CFA

Who Wins and Who Loses from Oil Under $50? Hint: Invest in Asia

Hungary: Faster earnings growth should drive GDP higher in coming months.Mexico: Expected to raise rates 50bps next Thursday in the wake of...

David Riedel

New York and London Battle for Saudi Aramco IPO

Interesting article in the Financial Time (FT) on stock exchanges fighting for Saudi Aramco IPO...

Thierry Bros, PhD

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

CX Daily: How the EU’s New Tariff Hikes Will Affect China-Made EVs

Tariffs / Caixin Explains: How the EU’s new tariff hikes will affect China-made EVs The European Union has decided to provisionally impose extra...

Caixin Global

COSCO Shipping Energy (1138 HK): Global Index Inclusion & The A/H Premium

Following a jump in the stock price, COSCO Shipping Energy could be added to a global index in May. The positioning and passive buying could lead...

Brian Freitas

COSCO Shipping Energy (1138 HK): Is It Too Stretched?

​CSET's impressive YTD rally may be unsustainable as the market assumes elevated VLCC rates will continue, but history suggests otherwise. Its P/B...

Osbert Tang, CFA

Who Wins and Who Loses from Oil Under $50? Hint: Invest in Asia

Hungary: Faster earnings growth should drive GDP higher in coming months.Mexico: Expected to raise rates 50bps next Thursday in the wake of...

David Riedel

New York and London Battle for Saudi Aramco IPO

Interesting article in the Financial Time (FT) on stock exchanges fighting for Saudi Aramco IPO...

Thierry Bros, PhD

CSET's impressive YTD rally may be unsustainable as the market assumes elevated VLCC rates will continue, but history suggests otherwise. Its P/B...