Transport Sector, China and Asia-focused Research

Charles De Trenck

Thematic (Sector/Industry)

My updates back in December to reiterate the negative in containers (and bulk) and anticipated a weak 2016, to be sure. But in recent weeks it appears the market has gotten even weaker. I am sure our friends from Drewry have experienced this as well. A few key details below on rates that have gone even further south than 2009.In recent weeks we understand from friends that some markets in Intra-Asia have gone into negative pricing.This means that lines have to try to recoup some of their losses…

My updates back in December to reiterate the negative in containers (and bulk) and anticipated a weak 2016, to be sure. But in recent weeks it appears the market has gotten even weaker. I am sure our friends from Drewry have experienced this as well. A few key details below on rates that have gone even further south than 2009.In recent weeks we understand from friends that some markets in Intra-Asia have gone into negative pricing.This means that lines have to try to recoup some of their losses…

Container Shipping Industry Last Few Weeks Factoring in Doomsday

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyse the changes of A-H premium on 181 stocks over the last week. The average A-H premium was 70.1% as of Apr 3rd.</li>
<li>The average A-H premium changed by 0.7ppt week-on-week, led by energy, financials, health care and offset by industrials, consumer discretionary.</li>
<li>We highlight weekly changes in A-H premium for Great Wall Motor, China Coal Energy, China Minsheng Banking, China Everbright Bank, CHALCO, Crrc.</li>
</ul>


We analyse the changes of A-H premium on 181 stocks over the last week. The average A-H premium was 70.1% as of Apr 3rd.
The average A-H premium changed by 0.7ppt week-on-week, led by energy, financials, health care and offset by industrials, consumer discretionary.
We highlight weekly changes in A-H premium for Great Wall Motor, China Coal Energy, China Minsheng Banking, China Everbright Bank, CHALCO, Crrc.


A-H Premium Weekly (Apr 3rd): Great Wall Motor, China Coal Energy, China Minsheng Banking

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.

Reading everyday of depressed shipping should one make one anxious. When I joined my 1st ship in early 2002...shipping was boring. Frankly it was not the top choice for a job but it did pay in dollars. The sole motive for me was the money and maybe I didn't want to be another software engineer from India. Tankers were the good ships (solely because they paid more). Dry bulk gave more leisure time..they stayed on ports longer, with job at Bergesen touted as the prized catch..they used to carry…

Reading everyday of depressed shipping should one make one anxious.   When I joined my 1st ship in early 2002...shipping was boring. Frankly it was not the top choice for a job but it did pay in dollars. The sole motive for me was the money and maybe I didn't want to be another software engineer from India.   Tankers were the good ships (solely because they paid more). Dry bulk gave more leisure time..they stayed on ports longer, with job at Bergesen touted as the prized catch..they used to carry…

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>Despite a 15.4% post-result rally, <a href="https://www.smartkarma.com/entities/lonking-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3944:1" rel="noopener">Lonking Holdings (3339 HK)</a> remains inexpensive at 8.4x FY26F PER, with net cash equaling 68.8% of the share price.</li>
<li>Its exposure to higher oil prices and the Middle East war is limited, as sales are on an FOB basis, and none of these countries is among its top 10.</li>
<li>It targets a 15% revenue growth for FY26, and the 1Q26 trend is in line. Industry sales are encouraging in 2M26, with excavators grew 13.1% and loaders 27.9%.</li>
</ul>


Despite a 15.4% post-result rally, Lonking Holdings (3339 HK) remains inexpensive at 8.4x FY26F PER, with net cash equaling 68.8% of the share price.
Its exposure to higher oil prices and the Middle East war is limited, as sales are on an FOB basis, and none of these countries is among its top 10.
It targets a 15% revenue growth for FY26, and the 1Q26 trend is in line. Industry sales are encouraging in 2M26, with excavators grew 13.1% and loaders 27.9%.


Lonking (3339 HK): A Real Gem, Net Cash = 69% Market Cap

<ul>
<li>We analyse the changes of A-H premium on 181 stocks over the last week. The average A-H premium was 69.4% as of Mar 27th.</li>
<li>The average A-H premium changed by 0.4ppt week-on-week, led by industrials, utilities, energy and offset by real estate, communication services, information technology.</li>
<li>We highlight weekly changes in A-H premium for Hans Cnc, Air China, CATL, Chongqing Rural Commercial Bank, Cgn Power, ABC.</li>
</ul>


We analyse the changes of A-H premium on 181 stocks over the last week. The average A-H premium was 69.4% as of Mar 27th.
The average A-H premium changed by 0.4ppt week-on-week, led by industrials, utilities, energy and offset by real estate, communication services, information technology.
We highlight weekly changes in A-H premium for Hans Cnc, Air China, CATL, Chongqing Rural Commercial Bank, Cgn Power, ABC.


A-H Premium Weekly (Mar 27th): Hans Cnc, Air China, CATL, Chongqing Rural Commercial Bank, Cgn Power

China

SANY Heavy Industry Co., Ltd manufactures and markets construction and engineering machinery and related parts. The Company produces and sells concrete pumps, concrete pump vehicles, road rollers, pavers, and other related products. Sany Heavy Industry markets its products worldwide.

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Sany Heavy Industry (600031 CH)

Container Shipping Industry Last Few Weeks Factoring in Doomsday

My updates back in December to reiterate the negative in containers (and bulk) and anticipated a weak 2016, to be sure. But in recent weeks it...

Charles De Trenck

A-H Premium Weekly (Apr 3rd): Great Wall Motor, China Coal Energy, China Minsheng Banking

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Great Wall Motor, China Coal Energy, China Minsheng Banking,...

Ke Yan, CFA, FRM

"Shipping Has to Become BORING Again"

Reading everyday of depressed shipping should one make one anxious. When I joined my 1st ship in early 2002...shipping was boring. Frankly it was...

Drewry Maritime Financial Research

Lonking (3339 HK): A Real Gem, Net Cash = 69% Market Cap

Lonking remains undervalued at 8.4x FY26F PER with strong revenue growth targets and limited exposure to higher oil prices and Middle East...

Osbert Tang, CFA

A-H Premium Weekly (Mar 27th): Hans Cnc, Air China, CATL, Chongqing Rural Commercial Bank, Cgn Power

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Hans Cnc, Air China, CATL, Chongqing Rural Commercial Bank,...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Container Shipping Industry Last Few Weeks Factoring in Doomsday

My updates back in December to reiterate the negative in containers (and bulk) and anticipated a weak 2016, to be sure. But in recent weeks it...

Charles De Trenck

A-H Premium Weekly (Apr 3rd): Great Wall Motor, China Coal Energy, China Minsheng Banking

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Great Wall Motor, China Coal Energy, China Minsheng Banking,...

Ke Yan, CFA, FRM

"Shipping Has to Become BORING Again"

Reading everyday of depressed shipping should one make one anxious. When I joined my 1st ship in early 2002...shipping was boring. Frankly it was...

Drewry Maritime Financial Research

Lonking (3339 HK): A Real Gem, Net Cash = 69% Market Cap

​Lonking remains undervalued at 8.4x FY26F PER with strong revenue growth targets and limited exposure to higher oil prices and Middle East...

Osbert Tang, CFA

A-H Premium Weekly (Mar 27th): Hans Cnc, Air China, CATL, Chongqing Rural Commercial Bank, Cgn Power

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Hans Cnc, Air China, CATL, Chongqing Rural Commercial Bank,...

Ke Yan, CFA, FRM

Lonking remains undervalued at 8.4x FY26F PER with strong revenue growth targets and limited exposure to higher oil prices and Middle East...