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.

Equity Bottom-Up

Pacific Basin Shipping / Equity Bottom-Up

Pacific Basin (2343 HK) - Can Under-Ownership Lead to Stock Out-performance ?There are many things wrong with dry bulk Shipping but we are asking investors to move from “What’s broken” to “What’s working”. It is certainly not an easy task for investors, but we see a very favorable risk-reward, which can prove to be fruitful in the years ahead. Back in 2008, when I covered Pacific Basin (2343 HK), there were 15+ analysts covering the stock as dry bulk bubble frenzy was at its peak. It was a…

Pacific Basin (2343 HK) - Can Under-Ownership Lead to Stock Out-performance ?There are many things wrong with dry bulk Shipping but we are asking investors to move from “What’s broken” to “What’s working”. It is certainly not an easy task for investors, but we see a very favorable risk-reward, which can prove to be fruitful in the years ahead. Back in 2008, when I covered Pacific Basin (2343 HK), there were 15+ analysts covering the stock as dry bulk bubble frenzy was at its peak. It was a…

Pacific Basin (2343 HK) - Can Under-Ownership Lead to Stock Out-Performance ?

Pacific Basin (2343 HK) - Not Too Late to Get On-boardPacific Basin (2343 HK) has been one of our key conviction buys in embattled dry bulk space. PB is within kissing distance of our TP and since our recommendation the stock is up 43%. We expect further gains to come and believe its not too late to take a fresh exposure. We believe the rally in Dry Bulk stocks has just started and provides a short-medium opportunity to accumulate gains. We had upgraded the stock in April as the rights issue in…

Pacific Basin (2343 HK) - Not Too Late to Get On-boardPacific Basin (2343 HK) has been one of our key conviction buys in embattled dry bulk space. PB is within kissing distance of our TP and since our recommendation the stock is up 43%. We expect further gains to come and believe its not too late to take a fresh exposure. We believe the rally in Dry Bulk stocks has just started and provides a short-medium opportunity to accumulate gains. We had upgraded the stock in April as the rights issue in…

Pacific Basin (2343 HK) - Not Too Late to Get Onboard

Pacific Basin (2343 HK) - Rights issue settles debt concerns; upgrade to Attractive<figure class="editor-figure"><img src="https://static-prod.smartkarma.com/images/media/000/007/523/original/PB1.jpg?1461549842" class="editor-image img-responsive" data-smartkarma-image-id="7523"></figure>Rights issue settles debt concerns; upgrade to Attractive: On April 18 Pacific Basin (PB) announced 1.9bn right shares at a subscription price of HKD 0.60 per share, offering a discount of 58.3% to the closing price of HKD 1.44 on the day. The company aims to utilise ~USD 143m of net proceeds mainly to repay convertible bonds worth USD 123.8m due in 2018, but with a put option that can be exercised as early as…

Pacific Basin (2343 HK) - Rights issue settles debt concerns; upgrade to AttractiveRights issue settles debt concerns; upgrade to Attractive: On April 18 Pacific Basin (PB) announced 1.9bn right shares at a subscription price of HKD 0.60 per share, offering a discount of 58.3% to the closing price of HKD 1.44 on the day. The company aims to utilise ~USD 143m of net proceeds mainly to repay convertible bonds worth USD 123.8m due in 2018, but with a put option that can be exercised as early as…

Pacific Basin (2343 HK) - Rights Issue Settles Debt Concerns; Upgrade to Attractive

Transport Sector, China and Asia-focused Research

Charles De Trenck

Pacific Basin <a href="https://www.smartkarma.com/entities/929" target="_blank" data-smartkarma-citation="entities:929">Pacific Basin Shipping Ltd</a>  had a nice pop early in the week following heartening 2015 results which showed a respectable underlying loss of $28m against a $56m loss in 2014, and dry bulk losses of $34m, up from $39m in losses in 2014. 2H15 handy losses were substantially higher than 1H15 — however. … And the Supramax time charters (TCEs) in 2016YTD appear to be lower than levels attained in 2015…Cashflow was essentially flat in 2015 just below the $90m mark, while net gearing…

Pacific Basin Pacific Basin Shipping Ltd  had a nice pop early in the week following heartening 2015 results which showed a respectable underlying loss of $28m against a $56m loss in 2014, and dry bulk losses of $34m, up from $39m in losses in 2014. 2H15 handy losses were substantially higher than 1H15 — however. … And the Supramax time charters (TCEs) in 2016YTD appear to be lower than levels attained in 2015…Cashflow was essentially flat in 2015 just below the $90m mark, while net gearing…

Stock Popping Sounds at Pacific Basin…Nice but Still Early

Thematic (Sector/Industry)

Reasonable port valuation supports M&amp;A activities<figure class="editor-figure"><img src="https://static-prod.smartkarma.com/images/media/000/005/443/original/ports5.JPG?1454570524" class="editor-image img-responsive" data-smartkarma-image-id="5443"></figure>Note: Market-weighted EV/EBITDA ticked higher from FY14 level of 14.8x to 15.0x Source: Bloomberg, DMER<figure class="editor-figure"><img src="https://static-prod.smartkarma.com/images/media/000/005/444/original/ports6.JPG?1454570793" class="editor-image img-responsive" data-smartkarma-image-id="5444"></figure> Source: Company, DMER• As the global trade growth moderates, we expect significant volatility to persist in the year ahead. Port companies with sturdy balance sheet will be favoured over growth companies. Debt servicing ratio is expected to trend lower on higher interest and faltering earnings. Therefore, we look for terminal operators with…

Reasonable port valuation supports M&amp;A activitiesNote: Market-weighted EV/EBITDA ticked higher from FY14 level of 14.8x to 15.0x Source: Bloomberg, DMER Source: Company, DMER• As the global trade growth moderates, we expect significant volatility to persist in the year ahead. Port companies with sturdy balance sheet will be favoured over growth companies. Debt servicing ratio is expected to trend lower on higher interest and faltering earnings. Therefore, we look for terminal operators with…

Global Port Operators - Reasonable Valuation Supports M&A Activities

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)

Pacific Basin (2343 HK) - Can Under-Ownership Lead to Stock Out-Performance ?

Pacific Basin (2343 HK) - Can Under-Ownership Lead to Stock Out-performance ?There are many things wrong with dry bulk Shipping but we are asking...

Drewry Maritime Financial Research

Pacific Basin (2343 HK) - Not Too Late to Get Onboard

Pacific Basin (2343 HK) - Not Too Late to Get On-boardPacific Basin (2343 HK) has been one of our key conviction buys in embattled dry bulk space....

Drewry Maritime Financial Research

Pacific Basin (2343 HK) - Rights Issue Settles Debt Concerns; Upgrade to Attractive

Pacific Basin (2343 HK) - Rights issue settles debt concerns; upgrade to AttractiveRights issue settles debt concerns; upgrade to Attractive: On...

Drewry Maritime Financial Research

Stock Popping Sounds at Pacific Basin…Nice but Still Early

Pacific Basin Pacific Basin Shipping Ltd had a nice pop early in the week following heartening 2015 results which showed a respectable underlying...

Charles De Trenck

Global Port Operators - Reasonable Valuation Supports M&A Activities

Reasonable port valuation supports M&A activitiesNote: Market-weighted EV/EBITDA ticked higher from FY14 level of 14.8x to 15.0xSource:...

Drewry Maritime Financial Research

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