Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

This report is part 2 of the Jeil Holdings IPO. Jeil Holdings is expected to complete its IPO in late June. Jeil Holdings is the Holdco for the biggest chicken producer &amp; dry bulk shipper in Korea.  <ul><li>Expected IPO offer price per share: 20,700 won (low)/ 22,700 won (high)</li><li>Number of Shares for IPO: 20.38 m shares (new shares)</li><li>IPO base deal size: US$377m (low);  US$519m (high)</li></ul>The following is how the bankers determined the IPO price range for Jeil Holdings: First, the value of its public affiliates, private affiliates, and brand value were added and net debt was subtracted, resulting in a value of 2.2 trillion won. After subtracting for holdco discount (20%), this resulted in a value of 1.8 trillion won. On a per share basis, this resulted in value per share of 25,300 won. After subtracting IPO discount rates of 10.3% to 18.2%, this suggested in IPO price range of 20,700 won to 22,700 won.

This report is part 2 of the Jeil Holdings IPO. Jeil Holdings is expected to complete its IPO in late June. Jeil Holdings is the Holdco for the biggest chicken producer &amp; dry bulk shipper in Korea.  Expected IPO offer price per share: 20,700 won (low)/ 22,700 won (high)Number of Shares for IPO: 20.38 m shares (new shares)IPO base deal size: US$377m (low);  US$519m (high)The following is how the bankers determined the IPO price range for Jeil Holdings: First, the value of its public affiliates, private affiliates, and brand value were added and net debt was subtracted, resulting in a value of 2.2 trillion won. After subtracting for holdco discount (20%), this resulted in a value of 1.8 trillion won. On a per share basis, this resulted in value per share of 25,300 won. After subtracting IPO discount rates of 10.3% to 18.2%, this suggested in IPO price range of 20,700 won to 22,700 won.

Jeil Holdings IPO (Part 2): Holdco for the Biggest Chicken Producer & Dry Bulk Shipper in Korea

Transport Sector, China and Asia-focused Research

Charles De Trenck

Equity Bottom-Up

A sure sign that we are still in the tender underbelly of shipping markets for equities (and that shipping’s recovery is a long drawn out affair) is when a placement manages to contribute to tanking other shares, and shares of the target placement company get hit 15+% as soon as a whiff of placement hits the market.<a href="https://www.smartkarma.com/entities/929" target="_blank" data-smartkarma-citation="entities:929:1">Pacific Basin Shipping Ltd (2343 HK)</a> and its proposed<a href="http://www.pacificbasin.com/upload//e2343_Announcement_RightIssue(18Apr16).pdf" target="_blank">cash raising</a>in the form of warrants issue in April 2016 running through to Summer 2016  was particularly painful:  1) It was the…

A sure sign that we are still in the tender underbelly of shipping markets for equities (and that shipping’s recovery is a long drawn out affair) is when a placement manages to contribute to tanking other shares, and shares of the target placement company get hit 15+% as soon as a whiff of placement hits the market.Pacific Basin Shipping Ltd (2343 HK) and its proposedcash raisingin the form of warrants issue in April 2016 running through to Summer 2016  was particularly painful:  1) It was the…

Bulk's (Shipping's) Thin Market for Placements…Again/Still ...Today Being Diana Shipping's Turn

Pacific Basin Shipping / Equity Bottom-Up

A boring passive ship owner stock like <a href="https://www.smartkarma.com/entities/21069" target="_blank" data-smartkarma-citation="entities:21069:1">Diana Shipping Inc (DSX US)</a>  exploded to the upside last week. There were some upgrades. And there were stories of Force Majeure in Australia affecting things like coal as a result of heavy rains. <a href="https://www.smartkarma.com/entities/929" target="_blank" data-smartkarma-citation="entities:929:1">Pacific Basin Shipping Ltd (2343 HK)</a> also put out 1Q17 Trading Results, which point to break-even levels for the company. The stock jumped the day after the data release.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/023/924/original/Pac%20Basin%201%20Q17.PNG?1491779511" class="editor-image img-responsive" data-smartkarma-image-id="23924"></figure>Source: Pacific BasinIn fact, Pac Basin over-shot a little to the upside above HK$1.9 levels…

A boring passive ship owner stock like Diana Shipping Inc (DSX US)  exploded to the upside last week. There were some upgrades. And there were stories of Force Majeure in Australia affecting things like coal as a result of heavy rains. Pacific Basin Shipping Ltd (2343 HK) also put out 1Q17 Trading Results, which point to break-even levels for the company. The stock jumped the day after the data release.Source: Pacific BasinIn fact, Pac Basin over-shot a little to the upside above HK$1.9 levels…

A Breakthrough in Bulk Last Week – and Some of the Drivers

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.

Diana Shipping ( DSX US) - The Rally Unlikley to Rub on the Earnings<ul><li>
Lower vessel earnings impact top line: Time charter revenue declined ~30% y/y to USD 27m in 3Q16 from USD 39m in 3Q15 due to a decline in average time charter rates. The reported revenue was broadly in line with our estimate of USD 29m. The company’s average earnings per vessel in 3Q16 were USD 6,551 pd, 38% lower than USD 10,529 pd in 3Q15. DSX reported a net loss of USD 78m in 3Q16 which was much higher than the loss of USD…</li></ul>

Diana Shipping ( DSX US) - The Rally Unlikley to Rub on the Earnings
Lower vessel earnings impact top line: Time charter revenue declined ~30% y/y to USD 27m in 3Q16 from USD 39m in 3Q15 due to a decline in average time charter rates. The reported revenue was broadly in line with our estimate of USD 29m. The company’s average earnings per vessel in 3Q16 were USD 6,551 pd, 38% lower than USD 10,529 pd in 3Q15. DSX reported a net loss of USD 78m in 3Q16 which was much higher than the loss of USD…

Diana Shipping ( DSX US) - The Rally Unlikley to Rub on the Earnings

DRYS has now spiked (before suspension) more than 2000% post Trump and as the BDI (Baltic Dry Index) popped above 1,000. Most of the trading activity in US shipping names has happened over the last two days. As a result, we had multiple TV segments on CNBC on Wednesday on these shares. The <a href="http://blogs.wsj.com/moneybeat/2016/11/16/unmoored-from-reality-dryships-halted-after-1500-post-election-rally/" target="_blank">WSJ</a> also took to writing on the topic for generalist readers. …This funky stock roller coaster, as well as longer-term stock holds are quickly recapped further below.The worst shipping companies, including…

DRYS has now spiked (before suspension) more than 2000% post Trump and as the BDI (Baltic Dry Index) popped above 1,000. Most of the trading activity in US shipping names has happened over the last two days. As a result, we had multiple TV segments on CNBC on Wednesday on these shares. The WSJ also took to writing on the topic for generalist readers. …This funky stock roller coaster, as well as longer-term stock holds are quickly recapped further below.The worst shipping companies, including…

Shipping Stocks Go Bananas, the Worst Rising the Most

United States

Diana Shipping, Inc. operates as a holding company, which provides shipping transportation services through the ownership and operation of dry bulk vessels. It medium to long-term time charters and transport a range of dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes. The company was founded on March 8, 1999 and is headquartered in Athens, Greece.

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Diana Shipping (DSX US)

Jeil Holdings IPO (Part 2): Holdco for the Biggest Chicken Producer & Dry Bulk Shipper in Korea

This report is part 2 of the Jeil Holdings IPO. Jeil Holdings is expected to complete its IPO in late June. Jeil Holdings is the Holdco for the...

Douglas Kim

Bulk's (Shipping's) Thin Market for Placements…Again/Still ...Today Being Diana Shipping's Turn

A sure sign that we are still in the tender underbelly of shipping markets for equities (and that shipping’s recovery is a long drawn out affair)...

Charles De Trenck

A Breakthrough in Bulk Last Week – and Some of the Drivers

A boring passive ship owner stock like Diana Shipping Inc (DSX US) exploded to the upside last week. There were some upgrades. And there were...

Charles De Trenck