Monday, February 01, 2021

Grindrod Shipping (GRIN)
Year Off to Positive Start

Grindrod Shipping, originated in South Africa with roots dating back to 1910. The company is based in Singapore, with offices around the world including, London, Durban, Cape Town, Tokyo and Rotterdam. Its primary listing is on Nasdaq and secondary listing on the JSE.

Grindrod Shipping owns and operates a diversified fleet of owned, long-term chartered and joint-venture dry-bulk and liquid-bulk vessels across the globe.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Dry bulk market thesis intact. While the past two years were negatively impacted by extreme factors, the supply/demand fundamentals appear favorable and the year has started on a better-than-expected note. The order book and supply growth remain historically low due to rate volatility, regulatory uncertainty and declining capital availability, while demand should rebound on the back of global stimulus packages and solid secular trends. Supramax rates averaged ~$10.8k/day in 4Q2020 and are close to $12.6k/day, which is counter to normal seasonality. While we expect some 1H2021 seasonality, the strong start to the year is positive.


Fine-tuning 2020 EBITDA estimate and introducing 2021 EBITDA estimate.  Given the firmer state of the dry bulk market, we are fine-tuning our 2020 EBITDA to $45.9 million from $46.0 million. There is limited visibility into this year, but the year is off to a good start and we are introducing a 2021 EBITDA estimate of $52.0 million, up ~13% over our 2020 estimate …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.