汇丰银行-台湾海运业-taiwan container shipping 2q17 results point to a stronger 2h recovery-20170814-hsbc

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1、14August2017TaiwanContainerShippingEQUITIESMARINE2Q17resultspointtoastronger2HrecoveryTaiwanEvergreenrecordedaq-o-qhigherprofitin2Q17;YangMingParashJain*remainedloss-makingbutturnedprofitableatEBITlevelHeadofTransportResearch,Asia-PacificTheHongkongandShan

2、ghaiBankingCorporationLimitedparashjain@hsbc.com.hkWeexpectastrongpeakseasonandgradualrecoveryforthe+85229966717sector,substantiallyraiseourprofitforecastsforbothLouisPang*AssociateTheHongkongandShanghaiBankingCorporationLimitedUpgradeEvergreentoBuyfromHoldon

3、higherTWD21.10TPlouis.w.h.pang@hsbc.com.hk+85229149934andYangMingtoHoldfromReduceonhigherTWD12.80TPDeepakMaurya*AssociateEvergreenrecordedarecurringprofitofTWD2.1bn(16.3%annualisedROE)in2Q17vsalossofTWD2.4bnin2Q16andprofitofTWD487min1Q17,drivenby*Employedbyanon

4、-USaffiliateofHSBCSecurities(USA)Inc,andisnotregistered/qualifiedpursuanttoFINRAregulationshigheroperatingprofitandahigherprofitcontributionfromassociatesandJVs.Ledbymarketsharegain(thankstotheHanjinShippingbankruptcy)andfreightrateincrease,itsrevenuegrew27%y-o

5、-ygrowth(highestsince1Q13)in2Q17.ThisledtoEBITmarginof4.7%(+14ppty-o-yand+3pptq-o-q).AhigherprofitcontributionfromassociatesandJVswaspartlydrivenbyEvaAir(2618TT,NR)inwhichEvergreenholdsa16.31%stake.EvaAirreportedprofitofTWD1.6bnin2Q17,comparedtoalossofTWD739min

6、1Q17andaprofitofTWD1.2bnin2Q16.YangMingseesasignificantimprovementandturnsprofitableatEBITlevel:YangMinghadarecurringlossofTWD506m(-12.6%annualisedROE)vsalossofTWD5.0bnin2Q16andalossofTWD1.7bnin1Q17.YangMingregistered20%y-o-yrevenuegrowthin2Q17drivenbyareboundi

7、nfreightratesandmarketsharegainwhileoperatingcostswerelargelyflat,reflectingcontinuedimprovementincostefficiencies.Asaresult,operatingmarginturnedpositiveat0.4%in2Q17(+18ppty-o-yand+4pptq-o-q)buthigherleverageremainsadragonthebottomline.Weincrease2017eEvergreen

8、ROEto11.0%(from1.3%)andYMMto-7.8%(from-31.1%).WeincreaseourearningsforecastsforbothEvergreenandYangMing,drivenbytheexpectationofastrongpeakseasonaheadandthefullimpactofhighe