Transport Sector, China and Asia-focused Research

Charles De Trenck

Equity Bottom-Up

The 2-day 7% correction in oil managed to slaughter many cyclicals, from RIG, which had just gotten a big buy send-off from Barron’s two weeks ago, to transport names across the board. Containers, of course have little to do with oil price directly.  A little over a month ago, I had updated my generally negative view of last year on Seaspan. <a href="https://www.smartkarma.com/entities/23596" target="_blank" data-smartkarma-citation="entities:23596:1">Seaspan Corp. (SSW US)</a> had been, and is still, a leader in its field. But the negatives were that it had massively outperformed the sector while having its…

The 2-day 7% correction in oil managed to slaughter many cyclicals, from RIG, which had just gotten a big buy send-off from Barron’s two weeks ago, to transport names across the board. Containers, of course have little to do with oil price directly.  A little over a month ago, I had updated my generally negative view of last year on Seaspan. Seaspan Corp. (SSW US) had been, and is still, a leader in its field. But the negatives were that it had massively outperformed the sector while having its…

Oil Correction Drags Down Commodity Plays, Transports… and Takes Seaspan Back to Lows

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.

Pacific Basin Shipping / Equity Bottom-Up

DFRS Dry Bulk Shipping - Street Catching up to the Rally Now, Driven Solely by Momentum We were early buyers on the Dry Bulk sector upgrading the sector middle of last year. In our last year updates, we had said that recovery in dry bulk stocks will be led by investors accepting that there is indeed a sector normalization in play and sheer dislike and under-ownership will see the stocks gain and also provide a floor for the rally to build. <a href="https://www.smartkarma.com/insights/dmer-dry-bulk-shipping-under-owned-normalization-leading-to-investor-sentiment-turning-bullish" target="_blank">https://www.smartkarma.com/insights/dmer-dry-bulk-shippi</a>…

DFRS Dry Bulk Shipping - Street Catching up to the Rally Now, Driven Solely by Momentum We were early buyers on the Dry Bulk sector upgrading the sector middle of last year. In our last year updates, we had said that recovery in dry bulk stocks will be led by investors accepting that there is indeed a sector normalization in play and sheer dislike and under-ownership will see the stocks gain and also provide a floor for the rally to build. https://www.smartkarma.com/insights/dmer-dry-bulk-shippi…

DFRS Dry Bulk Shipping - Street Catching up to the Rally Now, Driven Solely by Momentum

Orient Overseas International / Equity Bottom-Up

Don’t get me wrong. I still like <a href="https://www.smartkarma.com/entities/801" target="_blank" data-smartkarma-citation="entities:801:1">Orient Overseas Intl Ltd (316 HK)</a>, OOIL/OOCL, as an operator long term. Always have. And I may come back at another price or time. But there are a few issues worth drawing out, now that analysts have gone gaga over shipping – including notably <a href="https://www.smartkarma.com/entities/286" target="_blank" data-smartkarma-citation="entities:286:1">China COSCO Holdings (H) (1919 HK)</a> which is at some 3x OOIL on a P/B and which still is not fit for long term investing. I list my reasons in selling OOIL in easy bullets further below.OOIL was at HK$30 when I bought and…

Don’t get me wrong. I still like Orient Overseas Intl Ltd (316 HK), OOIL/OOCL, as an operator long term. Always have. And I may come back at another price or time. But there are a few issues worth drawing out, now that analysts have gone gaga over shipping – including notably China COSCO Holdings (H) (1919 HK) which is at some 3x OOIL on a P/B and which still is not fit for long term investing. I list my reasons in selling OOIL in easy bullets further below.OOIL was at HK$30 when I bought and…

Why I Just Sold Orient Overseas (OOIL) At HK$45

Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Thematic (Sector/Industry)

Extending my point about more demanding transportation frameworks going forward (see <a href="https://www.smartkarma.com/insights/comfortdelgro-fy16-results-an-era-where-competition-hits-a-higher-gear" target="_blank" data-smartkarma-citation="insights:8719">ComfortDelGro FY16 Results: An Era Where Competition Hits a Higher Gear</a> ), the recent fire-bomb attack on Hong Kong’s MTR that left 19 injured signals increasing costs for transport operators. This article presents another reason why investors should sell MTR Corp, on top of points already provided by fellow insight provider Sameer Taneja in an earlier piece <a href="https://www.smartkarma.com/insights/mtr-66-hk-conviction-sell-thesis" target="_blank" data-smartkarma-citation="insights:7982">MTR (66 HK): Conviction Sell Thesis</a><h2>Security Costs to</h2>…

Extending my point about more demanding transportation frameworks going forward (see ComfortDelGro FY16 Results: An Era Where Competition Hits a Higher Gear ), the recent fire-bomb attack on Hong Kong’s MTR that left 19 injured signals increasing costs for transport operators. This article presents another reason why investors should sell MTR Corp, on top of points already provided by fellow insight provider Sameer Taneja in an earlier piece MTR (66 HK): Conviction Sell ThesisSecurity Costs to…

66 HK and SBUS SP: Attack on HK Metro Signals Increases in Transport Operators' Costs

DFRS Trading Idea 2017 #1 - Pacific Basin (2343 HK) - Time to Play Catch UpWe have been strong buyers of Pacific basin since April last year and it remains one of our favored picks in the Asian shipping sector. <a href="https://www.smartkarma.com/insights/pacific-basin-2343-hk-rights-issue-settles-debt-concerns-upgrade-to-attractive" target="_blank">https://www.smartkarma.com/insights/pacific-basin-2343-hk-rights-issue-settles-debt-concerns-upgrade-to-attractive</a>, <a href="https://www.smartkarma.com/insights/pacific-basin-2343-hk-not-too-late-to-get-onboard" target="_blank">https://www.smartkarma.com/insights/pacific-basin-2343-hk-not-too-late-to-get-onboard</a> &amp; <a href="https://www.smartkarma.com/insights/pacific-basin-2343-hk-sequential-improvement-in-rates-continues-to-outperform-the-market-rates" target="_blank">https://www.smartkarma.com/insights/pacific-basin-2343-hk-sequential-improvement-in-r</a>…

DFRS Trading Idea 2017 #1 - Pacific Basin (2343 HK) - Time to Play Catch UpWe have been strong buyers of Pacific basin since April last year and it remains one of our favored picks in the Asian shipping sector. https://www.smartkarma.com/insights/pacific-basin-2343-hk-rights-issue-settles-debt-concerns-upgrade-to-attractive, https://www.smartkarma.com/insights/pacific-basin-2343-hk-not-too-late-to-get-onboard &amp; https://www.smartkarma.com/insights/pacific-basin-2343-hk-sequential-improvement-in-r…

DFRS Trading Idea 2017 #1 - Pacific Basin (2343 HK) - Time to Play Catch Up

Hong Kong

Pacific Basin Shipping Limited, through its subsidiaries, provides marine transportation services and logistical support to its customers through the commercial operation of a large, modern, and uniformly-sized fleet of shallow-draft Handysize dry bulk carriers.

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Pacific Basin Shipping (2343 HK)

Oil Correction Drags Down Commodity Plays, Transports… and Takes Seaspan Back to Lows

The 2-day 7% correction in oil managed to slaughter many cyclicals, from RIG, which had just gotten a big buy send-off from Barron’s two weeks ago,...

Charles De Trenck

DFRS Dry Bulk Shipping - Street Catching up to the Rally Now, Driven Solely by Momentum

DFRS Dry Bulk Shipping - Street Catching up to the Rally Now, Driven Solely by Momentum We were early buyers on the Dry Bulk sector upgrading...

Drewry Maritime Financial Research

Why I Just Sold Orient Overseas (OOIL) At HK$45

Don’t get me wrong. I still like Orient Overseas Intl Ltd (316 HK), OOIL/OOCL, as an operator long term. Always have. And I may come back at...

Charles De Trenck

66 HK and SBUS SP: Attack on HK Metro Signals Increases in Transport Operators' Costs

Extending my point about more demanding transportation frameworks going forward (see ComfortDelGro FY16 Results: An Era Where Competition Hits a...

Valerie Law, CFA

DFRS Trading Idea 2017 #1 - Pacific Basin (2343 HK) - Time to Play Catch Up

DFRS Trading Idea 2017 #1 - Pacific Basin (2343 HK) - Time to Play Catch UpWe have been strong buyers of Pacific basin since April last year and it...

Drewry Maritime Financial Research

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