Global Ports - A Pearl in the Silt

We update our projections for Global Ports to incorporate recent developments. The company's two big container business competitors in the Baltic and Far East basins are approaching their capacity limits, so we expect it to benefit from a tailwind in terms of port utilization, though it still faces some pressure on tariffs from the service mix. Meanwhile, the non-container businesses have been growing rapidly and now account for more than 25% of total revenues. More positives on this front are set to emerge this year, as Global Ports has launched coal handling capacity at Ust-Luga. Recent asset disposals and managerial changes mean that we now expect a greater focus on the core segments, which we think will boost the group's performance. We retain our BUY on the stock, though we have cut our target price to $4.75 per GDR due to now using a blended valuation approach.