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)

Since the GFC, the global port operators have been under-performing the MSCI world index. The divergence has increased in the last 18 months and is now reaching an extreme. Does this make the sector a buy? We believe the industry dynamics are changing and the sector is pricing in  a structural slowdown in global trade. The growth industry has matured and is now more akin to valuations given to a utilities business i.e. P/E compression is in play despite still strong margins and earnings. We believe that ports sector on a macro basis is moving from a growth stock to a value stock which commands stable but lower P/E.  Wider implications for this would be the investor profile for the ports will change as more value investors get in and growth investors move away. We expect Chinese operators to get aggressive on M&amp;A and cheapest valuation in the sector in years on account of structural weakness to drive M&amp;A.

Since the GFC, the global port operators have been under-performing the MSCI world index. The divergence has increased in the last 18 months and is now reaching an extreme. Does this make the sector a buy? We believe the industry dynamics are changing and the sector is pricing in  a structural slowdown in global trade. The growth industry has matured and is now more akin to valuations given to a utilities business i.e. P/E compression is in play despite still strong margins and earnings. We believe that ports sector on a macro basis is moving from a growth stock to a value stock which commands stable but lower P/E.  Wider implications for this would be the investor profile for the ports will change as more value investors get in and growth investors move away. We expect Chinese operators to get aggressive on M&amp;A and cheapest valuation in the sector in years on account of structural weakness to drive M&amp;A. 

Port Operators - Valuations Downshift on Structural Changes

Co-founder & Managing Director, Marketnomix 

Rajan Govil

Co-founder & Managing Director

Marketnomix 

Macroeconomics

Singapore’s GDP grew by 1.8% y-o-y in 1Q2016 similar to the growth experienced in the previous two quarters. Private consumption expenditure contributed about one-percentage points while government expenditure contributed 0.7 percentage points to the growth. Net exports detracted 3.8% from GDP growth the in quarter ended March 2016.While services sector remains a major contributor to overall GDP, 1Q2016 saw its contribution decelerate from 2.8% in 1Q2015 to 0.9% in 1Q2016 while that of goods…

Singapore’s GDP grew by 1.8% y-o-y in 1Q2016 similar to the growth experienced in the previous two quarters. Private consumption expenditure contributed about one-percentage points while government expenditure contributed 0.7 percentage points to the growth. Net exports detracted 3.8% from GDP growth the in quarter ended March 2016.While services sector remains a major contributor to overall GDP, 1Q2016 saw its contribution decelerate from 2.8% in 1Q2015 to 0.9% in 1Q2016 while that of goods…

Singapore: GDP Grows by 1.8% in 1Q2016 Driven by Consumption Expenditure

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

Following my insight dated Jan 7 on Sete Brasil's potential bankruptcy ( <a href="https://www.smartkarma.com/insights/sembcorp-marine-major-customer-sete-brasil-may-file-for-bankruptcy" target="_blank" data-smartkarma-citation="insights:2275">Sembcorp Marine: Major Customer Sete Brasil May File for Bankruptcy</a>  ), Bloomberg reported that its shareholders approves plan to file for bankruptcy on Wednesday. ( <a href="http://www.bloomberg.com/news/articles/2016-04-20/sete-brasil-shareholders-said-to-approve-plan-to-file-bankruptcy" target="_blank">Sete Brasil Shareholders Approve Plan to File for Bankruptcy</a>)The whole saga started when Sete Brasil's single customer, <a href="https://www.smartkarma.com/entities/22692" target="_blank" data-smartkarma-citation="entities:22692">Petrobras Sa (Adr)</a> , slashed its rig leasing plan from 28 deepwater rigs to 10 which is forcing the shareholders of Sete Brasil to inject…

Following my insight dated Jan 7 on Sete Brasil's potential bankruptcy ( Sembcorp Marine: Major Customer Sete Brasil May File for Bankruptcy  ), Bloomberg reported that its shareholders approves plan to file for bankruptcy on Wednesday. ( Sete Brasil Shareholders Approve Plan to File for Bankruptcy)The whole saga started when Sete Brasil's single customer, Petrobras Sa (Adr) , slashed its rig leasing plan from 28 deepwater rigs to 10 which is forcing the shareholders of Sete Brasil to inject…

Sembcorp Marine: Sete Brasil a Step Closer to Bankruptcy & Contract Cancellation?

<figure class="editor-figure"><figure class="editor-figure">Keppel Corp reported its 1Q16 results this evening (<a href="http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&amp;B=AnnouncementTodaySecurity&amp;F=Z1DZYBNJEO3AG7CB&amp;H=5e3c4e34eb24a102960d6bcad8f6c7cf1abd43c067c522f6098b4de93af52250&amp;fileId=KCL1Q%202016%20results.pdf" target="_blank">here is the url to the announcement and presentation</a>). Overall it is a set of disappointing results as compared to expectations (with 1Q revenue and net profit representing 19.2% and 17% consensus full year estimates respectiely), however, there are still silver lining as the group is taking disciplined action to optimize its operation in a tough environment. The company has detailed explanation of financials in its announcement. In this</figure></figure>…

Keppel Corp reported its 1Q16 results this evening (here is the url to the announcement and presentation). Overall it is a set of disappointing results as compared to expectations (with 1Q revenue and net profit representing 19.2% and 17% consensus full year estimates respectiely), however, there are still silver lining as the group is taking disciplined action to optimize its operation in a tough environment. The company has detailed explanation of financials in its announcement. In this…

Keppel Corp 1Q16 Results: Property Come to Save Offshore? What Awaits SMM?

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New Street Research

Research is provided by our team of experienced analysts. Our work is idea driven, based on independence of thought, sector expertise, and firmly focused on fundamentals and valuation of telecoms and internet names globally. New Street is headquartered in London with offices in New York, Singapore and Australia. 

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

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We also provide debt research on:
Pan European Telecom Services and Cable

<a href="https://www.smartkarma.com/entities/412" target="_blank" data-smartkarma-citation="entities:412">M1 Ltd</a> (M1)'s results were not particularly strong as <a href="https://www.smartkarma.com/profiles/433" target="_blank" data-smartkarma-citation="accounts:433">Ashish Saxena</a> pointed out earlier today. The questions around the CEO's ESOP share transactions is indeed intriguing. Whether <a href="https://www.smartkarma.com/entities/12" target="_blank" data-smartkarma-citation="entities:12">Keppel Corp Ltd</a>  would sell to <a href="https://www.smartkarma.com/entities/944" target="_blank" data-smartkarma-citation="entities:944">Axiata Group Berhad</a> is also interesting. We doubt that Axiata has any interest in 100% control but they are on record as saying they would like to increase their stake. I wonder if there might be a waiver on a mandatory offer in some circumstances? Our main focus is on M1's operations and…

M1 Ltd (M1)'s results were not particularly strong as Ashish Saxena pointed out earlier today. The questions around the CEO's ESOP share transactions is indeed intriguing. Whether Keppel Corp Ltd  would sell to Axiata Group Berhad is also interesting. We doubt that Axiata has any interest in 100% control but they are on record as saying they would like to increase their stake. I wonder if there might be a waiver on a mandatory offer in some circumstances? Our main focus is on M1's operations and…

Singapore

Keppel Corporation Limited's core businesses are offshore and marine, infrastructure, property investment and development, telecommunications and transportation, energy, and engineering.

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Keppel Corp (KEP SP)

Port Operators - Valuations Downshift on Structural Changes

Since the GFC, the global port operators have been under-performing the MSCI world index. The divergence has increased in the last 18 months and is...

Drewry Maritime Financial Research

Singapore: GDP Grows by 1.8% in 1Q2016 Driven by Consumption Expenditure

Singapore’s GDP grew by 1.8% y-o-y in 1Q2016 similar to the growth experienced in the previous two quarters. Private consumption expenditure...

Rajan Govil

Sembcorp Marine: Sete Brasil a Step Closer to Bankruptcy & Contract Cancellation?

Following my insight dated Jan 7 on Sete Brasil's potential bankruptcy ( Sembcorp Marine: Major Customer Sete Brasil May File for Bankruptcy ),...

Ke Yan, CFA, FRM

Keppel Corp 1Q16 Results: Property Come to Save Offshore? What Awaits SMM?

Keppel Corp reported its 1Q16 results this evening (here is the url to the announcement and presentation). Overall it is a set of disappointing...

Ke Yan, CFA, FRM

M1 Is Priced for a New Entrant.

M1 Ltd (M1)'s results were not particularly strong as Ashish Saxena pointed out earlier today. The questions around the CEO's ESOP share...

New Street Research

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