New York, NY – A few weeks ago, London-based shipping consultant, Drewry, launched a new equity research division called Drewry Maritime Equity Research. Drewry’s new equity research business will leverage over 40 years of expertise and knowledge of the shipping industry to produce independent investment research reports on public companies in the maritime industry, including companies in the Global Port and Liner sectors.
Background on Drewry
Drewry, originally founded in London in 1970, became the world’s authoritative provider of data, information, and analysis to the global maritime industry. Over the years Drewry added various services to its portfolio, including single client advisory work, as well as coverage of new sectors such as containers, ports, logistics and shipbuilding.
In the wake of establishing its new equity research group, Drewry now operates four distinct divisions, including Drewry Maritime Research; Drewry Supply Chain Advisors; Drewry Maritime Advisors; and Drewry Maritime Equity Research.
The company expanded from its base in London to add offices in India, Singapore, and China. These resources, in addition to Drewry’s network of associates across the world, enable the firm to operate on a global basis.
New Equity Research Division
A few weeks ago, Drewry announced the establishment of its new equity research division, called Drewry Maritime Equity Research (DMER), which has been authorized by the Financial Services Authority to provide investment advice.
DMER is initially focused on providing equity research on 24 of the leading companies in the Global Port and Liner sectors. Each of the firm’s investment reports will cover the company’s operational and strategic position.
The reports are prepared by Drewry’s dedicated team of equity analysts all of whom are grounded in a thorough knowledge of each company’s history combined with Drewry’s own expertise in the sector which has developed over the last 40 years.
These reports will cover the key valuation drivers for each company, a SWOT analysis for each firm; a traditional financial analysis of the companies; an analysis of the industries they play in; and a proprietary risk/reward matrix which positions each company based on Drewry’s view of its short-term valuation and long-term risk perspective.
DMER plans to release coverage on 12 companies in the Global Port sector through the end of 2012, with coverage on 12 companies in the Liner sector expected in 2013. Click the following link for DMER’s planned coverage for the next few months (http://dmer.drewry.co.uk/global-ports.php).
DMER expects to charge clients either on a subscription or ad hoc basis of £12,000 per sector or £1,500 per company. Click the following link to find out more about what is included in each of these packages (http://dmer.drewry.co.uk/report-packages.php).
First Report – DP World
To coincide with the announcement of DMER, the group initiated coverage on its first public company in the Global Port sector – DP World. This is the first of 12 companies that DMER expects to cover in this sector by the end of the year. Drewry also plans to publish research reports on companies including International Container Terminal Services, Cosco Pacific, and Huchison Port Holdings Trust.
DMER projects that DP World’s revenues will increase at a CAGR of 8.6% (adjusted for deconsolidation of Australian assets) to reach $3.66 billion in 2014, up from $2.98 billion in 2011. The throughput growth would be driven by high exposure to emerging markets as they contribute more than 80% of cargo. New developments such as London Gateway and expansion at Jebel Ali will further benefit volume growth. DMER expects that adjusted earnings will increase at an average annual rate of 8% during Fiscal Years 2011-14.
Based on these factors, and combined with recent debt reduction, DMER gives DP World a green light on both value and risk according to their proprietary value/risk ranking, which indicates an attractive valuation and a positive outlook.