Report

Dalian Port (PDA) Development Company Limited

We rate the stock as ‘Attractive’ with a target price of HKD 0.81 (an upside of 18%). The company is the biggest port operator in the three north-eastern provinces of China (Heilongjiang, Jilin and Liaoning). Since 2018, the company’s stock price has been trending downwards, reflecting its toughening local competitive landscape and tensions led by the US-China trade war in 2019. The stock is down by 27% on YTD basis and is trading in an undervalued zone with a P/E ratio of 10.1x (vs industry average 10.5x). Moving forward, with COVID-19-led uncertainties, difficulties in reopening of the economies and the upcoming US election, we believe investors are underestimating the potential benefits of provincial port consolidation efforts.
Underlying
Provider
Drewry Maritime Equity Research
Drewry Maritime Equity Research

Drewry, since 1970, has been providing research and advisory services on the global Maritime and Shipping industries and has established itself as a firm with long history of credibility and expertise on various aspects of the maritime industry. Leveraging this in-depth market knowledge and understanding, we have extended our offering to deliver a unique, independent investment research service on globally listed companies operating in the maritime industry. Under the brand Drewry Maritime Equity Research and in accordance with the FCA, DMER led by Rahul Kapoor and his team, offers fundamental analysis on listed companies. DMER analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. By combining these market-leading resources with seasoned sector expertise and commercial awareness, we are able to offer a highly differentiated and comprehensive investment research service to prospective investors in listed maritime companies. 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.

Analysts
Ankush Kathuria

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