Investors support port operators with emerging market focus: Drewry IN a tough business environment, stock market investors like companies with strong financials and emerging market interests - and port operators appear to fit the bill, according to London's Drewry Maritime Equity Research.
But investors are shy of firms facing regulatory problems, having been scared away from otherwise sound firms like Santos Brasil and Hamburg's HHLA. Santos Brasil faces regulatory uncertainty over the extension of its concession and HHLA stock has cooled over Elbe dredging eco-concerns.
Drewry identified Dubai's DP World and Manila's ICTSI as possessing the most promising features.
DP World's stock price was up 31 per cent and ICTSI increased 18 per cent with their common emerging market focus. The Manila company has continued two acquire and develop new assets while DP World has been monetising non-core assets to focus on key regions and assets to expand in emerging markets.
"DP World's stock price this year was backed by strong operating results, and an attractive valuation. The company has managed its balance-sheet well and timely monetised port assets such as in Hong Kong considering the moderating port volumes at the port," said the report.
ICTSI stock had a bullish performance until the middle of May this year fuelled by its expansion plans. The company announced concession win at Honduras and disclosed plans to build a two million TEU container facility at Tagum, Gulf of Davao in the beginning of the year. The company continues to manage its balance sheet well through a mix of equity and bond issues. In May 2013, it raised US$200 million through an equity issuance following the $400 million notes issue in January 2013, said Drewry.
But investors are shy of firms facing regulatory problems, having been scared away from otherwise sound firms like Santos Brasil and Hamburg's HHLA. Santos Brasil faces regulatory uncertainty over the extension of its concession and HHLA stock has cooled over Elbe dredging eco-concerns.
Drewry identified Dubai's DP World and Manila's ICTSI as possessing the most promising features.
DP World's stock price was up 31 per cent and ICTSI increased 18 per cent with their common emerging market focus. The Manila company has continued two acquire and develop new assets while DP World has been monetising non-core assets to focus on key regions and assets to expand in emerging markets.
"DP World's stock price this year was backed by strong operating results, and an attractive valuation. The company has managed its balance-sheet well and timely monetised port assets such as in Hong Kong considering the moderating port volumes at the port," said the report.
ICTSI stock had a bullish performance until the middle of May this year fuelled by its expansion plans. The company announced concession win at Honduras and disclosed plans to build a two million TEU container facility at Tagum, Gulf of Davao in the beginning of the year. The company continues to manage its balance sheet well through a mix of equity and bond issues. In May 2013, it raised US$200 million through an equity issuance following the $400 million notes issue in January 2013, said Drewry.