China Merchants Port (144 HK): Attractive Stub Value Ex-SIPG (600018 CH)

China Merchants Port (144 HK): Weak 1H2019 but Stub Value Stays Attractive

China Merchants Port (144 HK): Extending Outperformance Against SIPG (600018 CH)

China Merchants Port Holdings (HK:0144): Resilient Performer in the Face of Multiple Headwinds

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

<p>China Merchants Ports Holdings (CMPH) is valued attractively, on a PE basis, CMPH is valued at 14.0x on 12-month forward PE compared with the <a href="https://www.smartkarma.com/companies/180" target="_blank" data-smartkarma-citation="companies:180">Drewry Maritime Financial Research</a> Port Index (DPI) trading at 18.3x. The company has been hit by strings of headwinds including US-China trade talks and government mandated tariff cuts at some of its domestic ports. The port operating behemoth is now contending with consolidating assets to create synergies. We believe CMPH will be prudent in acquisitions given the appetite for port-related acquisitions is fading because of an increasingly challenging global growth outlook.</p>

China Merchants Ports Holdings (CMPH) is valued attractively, on a PE basis, CMPH is valued at 14.0x on 12-month forward PE compared with the Drewry Maritime Financial Research Port Index (DPI) trading at 18.3x. The company has been hit by strings of headwinds including US-China trade talks and government mandated tariff cuts at some of its domestic ports. The port operating behemoth is now contending with consolidating assets to create synergies. We believe CMPH will be prudent in acquisitions given the appetite for port-related acquisitions is fading because of an increasingly challenging global growth outlook.

CMPH: Age Cannot Wither CMPH, nor Custom Stale Its Variety