• BUY Entry – 0.38 Target –0.43 Stop Loss – 0.36
  • Samudera Shipping Line is primarily engaged  in container shipping transportation of cargo in the Asia region. The company’s vessels and services currently ply trade routes connecting various ports in Southeast Asia, the Indian Subcontinent, the Far East and the Middle East
  • As of end-2020, Samudera’s operating fleet, which comprises vessels owned by the group as well as those on leases, currently stands at 30. This consists of 27 container vessels, 2 chemical tankers and 1 gas tanker.
  • Fast and furious on the high seas. The WCI Composite Container Freight Benchmark rate, which tracks eight major trade routes, surged to US$8,796, a 333% increase from the same period last year. Drewry expects rates to increase further in the coming week. (See the chart below). 
  • Upcoming semi-annual results is a key catalyst. The company is likely due to report its first half results in the last week of July. A better-than-expected performance may provide another booster shot to its share price.

WCI Composite Container Freight Benchmark Rates per 40 Foot Box

SAMU SP (Source: Bloomberg)