Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Bottom-Up

AP Moeller - Maersk A/S / Equity Bottom-Up

<ul>
<li>Q1 volume growth (+9.3%) beat market, and rising oil has not impacted results -- yet</li>
<li>Still, EBITDA in Ocean (container shipping) segment plunged 53% Y/Y on lower rates</li>
<li>Guidance from February unchanged, but medium-term outlook is downbeat; AVOID</li>
</ul>


Q1 volume growth (+9.3%) beat market, and rising oil has not impacted results -- yet
Still, EBITDA in Ocean (container shipping) segment plunged 53% Y/Y on lower rates
Guidance from February unchanged, but medium-term outlook is downbeat; AVOID


Maersk Q126 Results: Strong Volume Growth, Delayed Fuel Impact, But Profitability Still Plunged

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.

Thematic (Sector/Industry)

Supply-demand balance still delicate, but better than last two years. The balance between supply and demand is still wafer-thin, which has had its impact, despite the peak season being underway. Our latest numbers suggest that the peak season freight rate growth is expected to be moderate this year. On the Asia-Europe trade, the late summer lull in shipments was a headwind, while the Transpacific still suffers the overhang of excess supply. In addition, massive factory closure in China…

Supply-demand balance still delicate, but better than last two years. The balance between supply and demand is still wafer-thin, which has had its impact, despite the peak season being underway. Our latest numbers suggest that the peak season freight rate growth is expected to be moderate this year. On the Asia-Europe trade, the late summer lull in shipments was a headwind, while the Transpacific still suffers the overhang of excess supply. In addition, massive factory closure in China…

Container Shipping - A Rising Tide Floats All Boats

<ul>
<li>For both carriers, rates and OP margins surged in H224, but have fallen ever since then</li>
<li>Though it's a distinct market, Intra-Asia conditions are impacted by deep-sea conditions</li>
<li>TS Lines' strong share outperformance vs market leader Wan Hai Lines is not justified</li>
</ul>


For both carriers, rates and OP margins surged in H224, but have fallen ever since then
Though it's a distinct market, Intra-Asia conditions are impacted by deep-sea conditions
TS Lines' strong share outperformance vs market leader Wan Hai Lines is not justified


Intra-Asia Container Carriers Wan Hai Lines, TS Lines Also Feeling the Pain of Lower Freight Rates

Orient Overseas (International) / Equity Bottom-Up

<ul>
<li>Spot freight rates are fading again in mid-April, despite ongoing conflict in Strait of Hormuz</li>
<li>Spot fuel prices remain high and we believe Q126 OP margins will show sharp compression</li>
<li>We expect shares in container segment to give back all of March's gains, and then some</li>
</ul>


Spot freight rates are fading again in mid-April, despite ongoing conflict in Strait of Hormuz
Spot fuel prices remain high and we believe Q126 OP margins will show sharp compression
We expect shares in container segment to give back all of March's gains, and then some


Monthly Container Shipping Tracker | March Price Weak, April Spot Rates, Too | Fuel Starting to Bite

Co-founder & Managing Director, Marketnomix 

Rajan Govil

Co-founder & Managing Director

Marketnomix 

Macroeconomics

Industrial production in Eurozone continues to struggle to gain momentum and came in weaker than expected in June which poses a risk to our GDP outlook of 1.3% for 2016 (lowered from 1.6% after the Brexit vote). While the weakness in factory output was seen ahead of the Brexit vote, the effect of UK’s exit is clearly felt in the aftermath, and it is expected to come in weaker going forward.Industrial Production (IPI) in the Eurozone came in at 0.4% y-o-y in June 2016 similar to the growth seen…

Industrial production in Eurozone continues to struggle to gain momentum and came in weaker than expected in June which poses a risk to our GDP outlook of 1.3% for 2016 (lowered from 1.6% after the Brexit vote). While the weakness in factory output was seen ahead of the Brexit vote, the effect of UK’s exit is clearly felt in the aftermath, and it is expected to come in weaker going forward.Industrial Production (IPI) in the Eurozone came in at 0.4% y-o-y in June 2016 similar to the growth seen…

EUROZONE: Weak Industrial Production Poses Risk to GDP Growth

Germany

Hapag-Lloyd AG operates as a container shipping line company. The Company offers transportation of goods by sea, road, rail, and inland waterway vessels. Hapag-Lloyd serves customers worldwide.

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Hapag-Lloyd (HLAG GY)

Maersk Q126 Results: Strong Volume Growth, Delayed Fuel Impact, But Profitability Still Plunged

In Copenhagen on May 7, Danish container giant AP Moller Maersk reported Q126 results that showed a sharp Y/Y decline in core profitability -- this...

Tracking Traffic

Container Shipping - A Rising Tide Floats All Boats

Supply-demand balance still delicate, but better than last two years. The balance between supply and demand is still wafer-thin, which has had its...

Drewry Maritime Financial Research

Intra-Asia Container Carriers Wan Hai Lines, TS Lines Also Feeling the Pain of Lower Freight Rates

Revenue and OP margins for Intra-Asia container carriers Wan Hai Lines and TS Lines surged in H224 but have fallen sharply since then. We expect...

Tracking Traffic

Monthly Container Shipping Tracker | March Price Weak, April Spot Rates, Too | Fuel Starting to Bite

March price momentum remained weak, and now in mid-April spot rates are beginning to fall. Fuel costs have risen sharply, and Q1-Q2 carrier margins...

Tracking Traffic

EUROZONE: Weak Industrial Production Poses Risk to GDP Growth

Industrial production in Eurozone continues to struggle to gain momentum and came in weaker than expected in June which poses a risk to our GDP...

Rajan Govil

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