Quote | Super Quote
Super Quote   |   Detail Quote   |   Interactive Chart   |   Real-Time Chart   |   Transaction   |   Related News   |   Related Securities   |   Company Information   |   Dividend Records   |   Short Sell
01199 COSCO SHIP PORT
RTNominal down3.900 -0.160 (-3.941%)
Research Report

11/02/2020 17:57

Container port operators to weather coronavirus outbreak

[ET Net News Agency, 11 February 2020] Moody's Investors Service explains in a newly
published report that the coronavirus outbreak is credit negative for port operators in
the Asia Pacific because it is disrupting domestic and global supply chains and lowering
discretionary consumer spending, which will reduce the throughput growth of these ports in
2020.
"Nevertheless, while rated container port operators in the Asia Pacific will face some
short-term throughput and revenue reductions, they are likely to weather the negative
credit effects because of their business scale, competitive market positions and financial
buffers," said Ralph Ng, a Moody's Assistant Vice President and Analyst.
"Moreover, capital expenditure related to expansions will likely be postponed until the
situation stabilizes," added Ng.
For Chinese ports, in particular, Moody's expects that they will receive timely support
from the government, including announced measures to improve access to funding for
companies.
With rated Indian ports, the share of China-linked container cargo is less than 5% by
volume. Furthermore, it is likely that manufacturers will seek alternative sources of
supply for components to the extent that supply chain disruptions in China persist.
However, port operators that have directly entered into contracts with China-based
commodity off-takers could face liquidity shortfalls if the latter seeks payment relief
under a force majeure clause, which relieves a company of its contractual obligations.
Moody's explains that while China announced last week that it would offer support to
companies that sought to declare force majeure on international contracts, the actual
exposure and financial impact will depend on the contracts between the off-takers and the
port. (KL)

Remark: Real time quote last updated: 22/05/2020 17:58
  Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service
A Member of HKET Holdings
Customer Service Hotline:(852) 2880 7004     Customer Service Email:cs@etnet.com.hk
Copyright 2020 ET Net Limited. http://www.etnet.com.hk ET Net Limited, HKEx Information Services Limited, its Holding Companies and/or any Subsidiaries of such holding companies, and Third Party Information Providers endeavour to ensure the availability, completeness, timeliness, accuracy and reliability of the information provided but do not guarantee its availability, completeness, timeliness, accuracy or reliability and accept no liability (whether in tort or contract or otherwise) any loss or damage arising directly or indirectly from any inaccuracies, interruption, incompleteness, delay, omissions, or any decision made or action taken by you or any third party in reliance upon the information provided. The quotes, charts, commentaries and buy/sell ratings on this website should be used as references only with your own discretion. ET Net Limited is not soliciting any subscriber or site visitor to execute any trade. Any trades executed following the commentaries and buy/sell ratings on this website are taken at your own risk for your own account.