Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Capital Markets

<ul>
<li>So far in 2023 TS Lines has sold off close to one quarter of its shipping capacity</li>
<li>In the company's core market, Intra-Asia, it appears rates have bottomed out here in Q323</li>
<li>We also review Q2 financial results from TS Lines' main comp, Wan Hai Lines (WHL)</li>
</ul>


So far in 2023 TS Lines has sold off close to one quarter of its shipping capacity
In the company's core market, Intra-Asia, it appears rates have bottomed out here in Q323
We also review Q2 financial results from TS Lines' main comp, Wan Hai Lines (WHL)


TS Lines Pre-IPO | Slimming Down Fleet | Intra-Asia Market Update | Latest From Key Comp Wan Hai

<ul>
<li>In terms of fleet characteristics, market exposure, and recent financial performance, we believe <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> and Taiwan's <a href="https://www.smartkarma.com/entities/wan-hai-lines-ltd" target="_blank" data-smartkarma-citation="entities:14262:1" rel="noopener">Wan Hai Lines (2615 TT)</a> are directly comparable</li>
<li>WHL has more exposure to the Transpacific, but still boasts a much larger Intra-Asia operation owing to its scale advantage (fleet and revenue about four times the size of TSL)</li>
<li>Given the similarities we outline in this insight, we believe TSL's shares should trade at EV/Fleet and EV/Revenue multiples in line with WHL's; no premium is justified, in our view</li>
</ul>


In terms of fleet characteristics, market exposure, and recent financial performance, we believe T.S. Lines (TSL HK) and Taiwan's Wan Hai Lines (2615 TT) are directly comparable
WHL has more exposure to the Transpacific, but still boasts a much larger Intra-Asia operation owing to its scale advantage (fleet and revenue about four times the size of TSL)
Given the similarities we outline in this insight, we believe TSL's shares should trade at EV/Fleet and EV/Revenue multiples in line with WHL's; no premium is justified, in our view


TS Lines Pre-IPO | Like Wan Hai Lines, but Smaller | Intra-Asia Update | Approaches to Valuation

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.

<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>As of Dec 22, its container shipping network covers a total of 24 countries and regions, 63 major ports and 42 services globally.</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.
As of Dec 22, its container shipping network covers a total of 24 countries and regions, 63 major ports and 42 services globally.


Equity Bottom-Up

<ul>
<li>Price momentum stagnant, but could North American volume surge be an inflection point?</li>
<li>Fuel price hasn't risen since outbreak of violence in mideast, but no longer a tailwind, either</li>
<li>Look to Maersk results on November 3 for guidance, US inventory de-stocking commentary</li>
</ul>


Price momentum stagnant, but could North American volume surge be an inflection point?
Fuel price hasn't risen since outbreak of violence in mideast, but no longer a tailwind, either
Look to Maersk results on November 3 for guidance, US inventory de-stocking commentary


Monthly Container Shipping Tracker | Rebound in NAM Volume Could Be Inflection Point (October 2023)

<ul>
<li>Our index suggests pricing momentum remains depressed, but stable in Q3; fuel prices have begun to rise from Q2 lows, but probably don't offer much lift to earnings now</li>
<li>We looked at intra-Asian carrier TS Lines (which applied to list its shares in Hong Kong in April) and provided a quick update on market conditions in the Intra-Asian trade</li>
<li>Shares of a few container shipping companies -- including Evergreen Marine of Taiwan -- have performed well YTD in 2023; we remain positive on the sector's medium-term outlook</li>
</ul>


Our index suggests pricing momentum remains depressed, but stable in Q3; fuel prices have begun to rise from Q2 lows, but probably don't offer much lift to earnings now
We looked at intra-Asian carrier TS Lines (which applied to list its shares in Hong Kong in April) and provided a quick update on market conditions in the Intra-Asian trade
Shares of a few container shipping companies -- including Evergreen Marine of Taiwan -- have performed well YTD in 2023; we remain positive on the sector's medium-term outlook


Monthly Container Shipping Tracker | Rates Stable | Fuel (Barely) Lower Y/Y | (September 2023)

China

T.S. Lines (TSL) is a container shipping firm primarily operating in the Asia Pacific (APAC) region.

T.S. Lines (TSL HK)

TS Lines Pre-IPO | Slimming Down Fleet | Intra-Asia Market Update | Latest From Key Comp Wan Hai

So far in 2023 TS Lines has exited trades and sold off a chunk of its fleet. Intra-Asian market conditions may have bottomed, and we will know soon...

Tracking Traffic

TS Lines Pre-IPO | Like Wan Hai Lines, but Smaller | Intra-Asia Update | Approaches to Valuation

The obvious, direct comparable for TS Lines is Wan Hai Lines of Taiwan. In this insight we compare the two, review market conditions, and suggest...

Tracking Traffic

T.S. Lines Pre-IPO Tearsheet

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...

Clarence Chu

Monthly Container Shipping Tracker | Rebound in NAM Volume Could Be Inflection Point (October 2023)

Pricing still appears stagnant, but a sharp rebound in container volumes moving into the ports along North America's Pacific coast in September...

Tracking Traffic

Monthly Container Shipping Tracker | Rates Stable | Fuel (Barely) Lower Y/Y | (September 2023)

According to our index, container shipping price momentum remains depressed, but stable. On the other hand, fuel prices -- a boon to earnings for...

Tracking Traffic