HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sitc-international-holdings" target="_blank" data-smartkarma-citation="entities:15301:1" rel="noopener">SITC International (1308 HK)</a>'s positive profit alert beat the FY24 forecast by 12%. It also suggests an acceleration in growth to 1.9-2.1x in 2H24, from +13% in 1H24. </li>
<li>The muted share price performance reflects concerns about an influx of capacity, intra-Asia demand outlook, and freight rate prospects. We refute such worries.</li>
<li>It stands on an attractive dividend yield of 11.1% for FY24. Even under conservative earnings forecasts, its 8.1% and 6.6% yields for FY25 and FY26 are appealing.</li>
</ul>



SITC International (1308 HK)'s positive profit alert beat the FY24 forecast by 12%. It also suggests an acceleration in growth to 1.9-2.1x in 2H24, from +13% in 1H24. 
The muted share price performance reflects concerns about an influx of capacity, intra-Asia demand outlook, and freight rate prospects. We refute such worries.
It stands on an attractive dividend yield of 11.1% for FY24. Even under conservative earnings forecasts, its 8.1% and 6.6% yields for FY25 and FY26 are appealing.


SITC International (1308 HK): Beating Expectations Again

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/t-s-lines" target="_blank" data-smartkarma-citation="entities:39795:1" rel="noopener">T.S. Lines (TSL HK)</a> is looking to raise US$145m in its Hong Kong IPO.</li>
<li>T.S. Lines (TSL) is a container shipping firm primarily operating in the Asia Pacific (APAC) region.</li>
<li>In a previous note, we looked at the firm’s past performance. In this note, we discuss peers and share our thoughts on valuation. </li>
</ul>



T.S. Lines (TSL HK) is looking to raise US$145m in its Hong Kong IPO.
T.S. Lines (TSL) is a container shipping firm primarily operating in the Asia Pacific (APAC) region.
In a previous note, we looked at the firm’s past performance. In this note, we discuss peers and share our thoughts on valuation. 


TS Lines IPO - Smaller than Peers, Although Valuation Seems Attractive

<ul>
<li>
<a href="https://www.smartkarma.com/entities/t-s-lines" target="_blank" data-smartkarma-citation="entities:39795:1" rel="noopener">T.S. Lines (TSL HK)</a> is looking to raise at least US$100m in its upcoming Hong Kong IPO.</li>
<li>T.S. Lines (TSL) is a container shipping firm primarily operating in the Asia Pacific (APAC) region.</li>
<li>In a previous note, we looked at the firm’s past performance. In this note, we talk about the recent updates from its filings.</li>
</ul>



T.S. Lines (TSL HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
T.S. Lines (TSL) is a container shipping firm primarily operating in the Asia Pacific (APAC) region.
In a previous note, we looked at the firm’s past performance. In this note, we talk about the recent updates from its filings.


T.S. Lines Pre-IPO - PHIP Updates - Shipping Volumes Improved, However Paid Another Large Dividend

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sitc-international-holdings" target="_blank" data-smartkarma-citation="entities:15301:1" rel="noopener">SITC International (1308 HK)</a>'s management guided for a promising outlook for 2H24, with strong load performance in Jul-Aug, and better long-term contract rates YoY.  </li>
<li>Gross margin expanded 4.5pp in 1H24 despite a 5.3% drop in average freight rate, thanks to good cost control with lower chartered-in costs and more self-owned vessels.</li>
<li>Net cash increased 195% from end-FY23, and we are confident that its 70% payout ratio can be maintained. Its P/B is still below the 5-year average.</li>
</ul>



SITC International (1308 HK)'s management guided for a promising outlook for 2H24, with strong load performance in Jul-Aug, and better long-term contract rates YoY.  
Gross margin expanded 4.5pp in 1H24 despite a 5.3% drop in average freight rate, thanks to good cost control with lower chartered-in costs and more self-owned vessels.
Net cash increased 195% from end-FY23, and we are confident that its 70% payout ratio can be maintained. Its P/B is still below the 5-year average.


SITC International (1308 HK): Advancing Amid the Challenging Time

<ul>
<li>
<a href="https://www.smartkarma.com/entities/t-s-lines" target="_blank" data-smartkarma-citation="entities:39795:1" rel="noopener">T.S. Lines (TSL HK)</a> is looking to raise about US$300m in its upcoming Hong Kong IPO.</li>
<li>T.S. Lines (TSL) is a container shipping firm primarily operating in the Asia Pacific (APAC) region.</li>
<li>In this note, we look at the firm’s past performance.</li>
</ul>



T.S. Lines (TSL HK) is looking to raise about US$300m in its upcoming Hong Kong IPO.
T.S. Lines (TSL) is a container shipping firm primarily operating in the Asia Pacific (APAC) region.
In this note, we look at the firm’s past performance.


T.S. Lines Pre-IPO - Looks like an Opportunistic Listing

Hong Kong

SITC International Holdings Co., Ltd. is a leading shipping logistics company in the intra-Asia area. It provides integrated transportation and logistics solutions, including container liner shipping, freight forwarding, shipping agency, and warehousing services. The company was founded in 1991 and is headquartered in Hong Kong.

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SITC International (1308 HK)