Transport Sector, China and Asia-focused Research

Charles De Trenck

Thematic (Sector/Industry)

I recently witnessed a typical mistake in using EV (enterprise value; short form, market cap + net debt), where the author used it interchangeably with market cap. This got me to thinking how recent non-freshly minted MBAs as well as maybe even other three letter certified specialists, at the margin, may cut corners when valuing their stocks and portfolios and end up siding with momentum investors.It is still fresh in my mind how many (not all) colleagues, especially China-linked, used to care more about inside scoops than valuation approaches. I tend to see many tech plays in light of momentum and not valuation. We could call many of these counters CNBC or Cramer stocks.The discussion is dividend into a discussion and interview on faulty uses of the cost of capital in shipping,  as well as a discussion on some of the mechanical problems now inherent in WACC, especially as it applies to shipping and long-term finance of cyclical assets.

I recently witnessed a typical mistake in using EV (enterprise value; short form, market cap + net debt), where the author used it interchangeably with market cap. This got me to thinking how recent non-freshly minted MBAs as well as maybe even other three letter certified specialists, at the margin, may cut corners when valuing their stocks and portfolios and end up siding with momentum investors.It is still fresh in my mind how many (not all) colleagues, especially China-linked, used to care more about inside scoops than valuation approaches. I tend to see many tech plays in light of momentum and not valuation. We could call many of these counters CNBC or Cramer stocks.The discussion is dividend into a discussion and interview on faulty uses of the cost of capital in shipping,  as well as a discussion on some of the mechanical problems now inherent in WACC, especially as it applies to shipping and long-term finance of cyclical assets.

Frankenstein WACCs. False Idols of Equity, Debt (And Shipping Interview with Sr. Investor)

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyse the changes of A-H premium on 180 stocks over the last week. The average A-H premium was 70.1% as of May 8th.</li>
<li>The average A-H premium changed by 0.2ppt week-on-week, led by utilities, energy, communication services and offset by financials.</li>
<li>We highlight weekly changes in A-H premium for Datang Power, Eastroc, Montage Tech, China Life, Midea, Fuyao Glass.</li>
</ul>


We analyse the changes of A-H premium on 180 stocks over the last week. The average A-H premium was 70.1% as of May 8th.
The average A-H premium changed by 0.2ppt week-on-week, led by utilities, energy, communication services and offset by financials.
We highlight weekly changes in A-H premium for Datang Power, Eastroc, Montage Tech, China Life, Midea, Fuyao Glass.


A-H Premium Weekly (May 8th): Datang Power, Eastroc, Montage Tech, China Life, Midea, Fuyao Glass

Equity analyst - Containers, Drewry Maritime Financial Research

Nilesh Tiwary

Equity analyst - Containers

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.

SummaryThe major indicators of container shipping in 2017 remained more firm than in 2016. The y/y comparisons for many data sets depict robust improvement. However, the outlook for 2018 is mixed. The supply-demand balance will improve slightly, demand growth will continue to be strong, and freight rates and the profits of carriers will strengthen at lower-than-expected rates as several temporary factors create a bump on the road to recovery. The creation of bigger alliances, and the escalation of…

SummaryThe major indicators of container shipping in 2017 remained more firm than in 2016. The y/y comparisons for many data sets depict robust improvement. However, the outlook for 2018 is mixed.  The supply-demand balance will improve slightly, demand growth will continue to be strong, and freight rates and the profits of carriers will strengthen at lower-than-expected rates as several temporary factors create a bump on the road to recovery.  The creation of bigger alliances, and the escalation of…

Container Shipping 2018 - Demand Buoyancy Drives Positive Outlook

<ul>
<li>We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on May 8th based on HKEx daily reports.</li>
<li>In the past 7 days, the top 3 companies that repurchased the most shares from the market were China Hongqiao (1378 HK), AIA (1299 HK), Xiaomi (1810 HK).</li>
<li>In the past 30 days, the top 3 companies that repurchased the most shares from the market were AIA (1299 HK), Xiaomi (1810 HK), Tencent (700 HK).</li>
</ul>


We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on May 8th based on HKEx daily reports.
In the past 7 days, the top 3 companies that repurchased the most shares from the market were China Hongqiao (1378 HK), AIA (1299 HK), Xiaomi (1810 HK).
In the past 30 days, the top 3 companies that repurchased the most shares from the market were AIA (1299 HK), Xiaomi (1810 HK), Tencent (700 HK).


Hong Kong Buybacks Weekly (May 8th): China Hongqiao, AIA, Xiaomi, Cosco Shipping

People who bought China, <a href="https://www.smartkarma.com/entities/5891" target="_blank" data-smartkarma-citation="entities:5891:1">Nvidia Corp (NVDA US)</a>, <a href="https://www.smartkarma.com/entities/438" target="_blank" data-smartkarma-citation="entities:438:1">iShares MSCI Emerging Markets Indx (ETF) (EEM US)</a> somewhere in 2017 performed well. A bit below the radar is that commodities started doing well too from mid-17. There is more to come. A recent chance to add right around my EV pieces a month ago were materials like aluminum.My core 2017 into 2018 stocks are: <a href="https://www.smartkarma.com/entities/929" target="_blank" data-smartkarma-citation="entities:929:1">Pacific Basin Shipping Ltd (2343 HK)</a> (continued accumulate on pullbacks, most recently a little more at HK$1.6 levels, recall some lightening…

People who bought China, Nvidia Corp (NVDA US), iShares MSCI Emerging Markets Indx (ETF) (EEM US) somewhere in 2017 performed well. A bit below the radar is that commodities started doing well too from mid-17. There is more to come. A recent chance to add right around my EV pieces a month ago were materials like aluminum.My core 2017 into 2018 stocks are: Pacific Basin Shipping Ltd (2343 HK) (continued accumulate on pullbacks, most recently a little more at HK$1.6 levels, recall some lightening…

Strategy: Around the Horn 2018, the Long and Short of It. Pacific Basin Initial Notes

China

COSCO SHIPPING Holdings Co., Ltd. offers shipping services. The Company provides container shipping, terminal operation, bulk shipping, and container leasing services. COSCO SHIPPING Holdings conducts businesses worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

COSCO SHIPPING Holdings (601919 CH)

Frankenstein WACCs. False Idols of Equity, Debt (And Shipping Interview with Sr. Investor)

I recently witnessed a typical mistake in using EV (enterprise value; short form, market cap + net debt), where the author used it interchangeably...

Charles De Trenck

A-H Premium Weekly (May 8th): Datang Power, Eastroc, Montage Tech, China Life, Midea, Fuyao Glass

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Datang Power, Eastroc, Montage Tech, China Life, Midea,...

Ke Yan, CFA, FRM

Container Shipping 2018 - Demand Buoyancy Drives Positive Outlook

SummaryThe major indicators of container shipping in 2017 remained more firm than in 2016. The y/y comparisons for many data sets depict robust...

Drewry Maritime Financial Research

Hong Kong Buybacks Weekly (May 8th): China Hongqiao, AIA, Xiaomi, Cosco Shipping

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were China Hongqiao...

Ke Yan, CFA, FRM

Strategy: Around the Horn 2018, the Long and Short of It. Pacific Basin Initial Notes

People who bought China, Nvidia Corp (NVDA US), iShares MSCI Emerging Markets Indx (ETF) (EEM US) somewhere in 2017 performed well. A bit below the...

Charles De Trenck

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)