Thanks Alex, interesting read! As supply chains have been increasingly moving away from China to countries like India, do you think this could affect SITC's business in the long-run?
Wondering how much does the chairman Yang Shaopeng still involves in running SITC, or he's retired fully? Chairman is now on the board of Hisense Group and one of the top 10 shareholder - do you think he only has financial interests in Hisense?
SITC's network covers the whole of Asia, so as long as supply chains are complex and require movements then it should be able to adapt. For example, even as companies shift final assembly from China to Vietnam, India etc, they might still need to ship materials, components or semi-finished goods between locations.
Fascinating about Yang Shaopeng's deep connection and ownership stake in Hisense Group. I did not previously know this, so thanks for the reference. It seems he controls a 27% stake in the unlisted Hisense Group, which in turn gives him valuable stakes in both Hisense listcos and other unlisted entities. One can also read about various strategic cooperation agreements signed between SITC and Hisense.
The economic value of his Hisense stake must be very significant, but in addition there is a strategic value. Only a deeply trusted and well connected individual could gain such a position.
To me, it reinforces that SITC is 100% a Chinese company. Those who are not comfortable with China and its government and business should not invest.
Thanks for this research. Nice to see that there are high quality [well managed] companies even in "no moat" industries like this one (and the parallel with Ryanair in Airlines seems particularly apt).
Thanks Alex, interesting read! As supply chains have been increasingly moving away from China to countries like India, do you think this could affect SITC's business in the long-run?
Wondering how much does the chairman Yang Shaopeng still involves in running SITC, or he's retired fully? Chairman is now on the board of Hisense Group and one of the top 10 shareholder - do you think he only has financial interests in Hisense?
Thanks for your comment.
SITC's network covers the whole of Asia, so as long as supply chains are complex and require movements then it should be able to adapt. For example, even as companies shift final assembly from China to Vietnam, India etc, they might still need to ship materials, components or semi-finished goods between locations.
Fascinating about Yang Shaopeng's deep connection and ownership stake in Hisense Group. I did not previously know this, so thanks for the reference. It seems he controls a 27% stake in the unlisted Hisense Group, which in turn gives him valuable stakes in both Hisense listcos and other unlisted entities. One can also read about various strategic cooperation agreements signed between SITC and Hisense.
The economic value of his Hisense stake must be very significant, but in addition there is a strategic value. Only a deeply trusted and well connected individual could gain such a position.
To me, it reinforces that SITC is 100% a Chinese company. Those who are not comfortable with China and its government and business should not invest.
I don't think I have come across this shipping stock before... I included your write-up in my Emerging Market Links + The Week Ahead (April 29, 2024) for today: https://emergingmarketskeptic.substack.com/p/emerging-markets-week-april-29-2024
Thanks for this research. Nice to see that there are high quality [well managed] companies even in "no moat" industries like this one (and the parallel with Ryanair in Airlines seems particularly apt).