The Group seeks to provide the investment community and its other stakeholders with relevant and regular news about Pacific Basin so that they have comprehensive information of our business, strategy and performance with which to assess the value of the Group.
In 2015, we received 8 investor relations and corporate governance awards from related publications and organisations. Our 2014 Annual Report was ranked 17th globally, rated “A” by e.com (Report Watch) and received a Gold Award at HKICPA’s Best Corporate Governance Awards. Our Online Annual Report also received a Gold Award at the ARC Awards (in the shipping services category) for a second consecutive year.
We launched our WeChat social media corporate account to connect more closely with Mainland Chinese investors and customers, as well as our Chinese crews. This additional channel enhances the stakeholder engagement we already enjoy through our existing Facebook, Linkedln and Twitter accounts as well as through traditional channels.
We proactively engage with a broad range of institutional and retail investors as well as media and other interest groups.
- We believe that the transparency stimulated by active stakeholder engagement builds recognition of our brand and ultimately enhances shareholder value.
- We facilitate engagement through the following channels:
- Annual and Interim Reports
- Online Annual Report
- Voluntary quarterly trading updates
- Presentations and press releases on business activities
Shareholder Meetings and Hotlines
- Group and one-on-one meetings
- Shareholder hotline and e-mail
Tel: +852 2233 7000
Investor Perception Studies
We consulted an annual consultation of investors and analysts for views on our group strategy, executive management, Annual Report and our corporate communications, investor relations and CSR programmes by way of telephone and online surveys
Ship visits for analysts, investors, press and guests are organised during vessel port calls or at ship naming ceremonies
Our corporate website is considered a key marketing medium which comprehensively covers Pacific Basin’s activities and competences. English, Chinese (traditional and simplified Chinese) and Japanese versions of the site are available, covering:
- Group profile
- Strategic and business models
- Fleet profile
- Board and senior management biographical data
- Corporate Governance, Risk Management and CSR
- Board Committees’ Terms of Reference
- Financial reports and company news
- Financial information excel downloads
- Press kits
We have recently restructured the website which includes more detailed information and easier navigation
Social Media Communications – Facebook, Twitter, Linkedln, Youtube and WeChat
Company news, video clips, photos and events are published through our social media sites
Roadshows are conducted every quarter following earnings announcements and trading updates. In 2015, we met investors in 20 cities in North America, Europe and Asia-Pacific.
In 2015, we met 594 (2014: 691) shareholders and investors
Type of Investor Meetings
Communications with Sell-Side Analysts
Pacific Basin encourages active analyst coverage to help investors evaluate the Group and its opportunities and challenges. Analysts’ briefings, meetings and conference calls are arranged with management from time to time, especially after results announcements. A significant number of key brokers publish reports on the Group. We held our 2015 Analyst Day in October at our Hong Kong headquarters. In an open dialogue between analysts and management, we shared our views on the industry, presented important accounting considerations, and reviewed Group developments described in the 2015 Interim Report and 2015 Third Quarter Trading Update. Divisional managers provided further insight into our daily business operations.
Our share capital is held by a diverse range of institutional, private and corporate investors, so we consider it important to make ourselves accessible to a wide spectrum of shareholders and members of the investment community to enhance their understanding of our business. The number of investor contacts during a year is the key measure of our engagement with investors.
Sell-Side Analyst Engagement
Analyst coverage (as measured by the number of active research reports covering Pacific Basin) in the period is a key measure of our profile in the shipping sector.
Investor Perception Studies
We gauge feedback on our Annual Report, Investor Relations programme, corporate governance and group strategy through annual written, online and verbal investor strategy.
As we found in 2013 and 2014, investors still consider the quality of our management team, valuation of our stock and the investment opportunity in the Handysize and Supramax sectors to be the most compelling reasons to invest in Pacific Basin.
Number of Investors We Met
- 13 analysts covered Pacific Basin in 2015 (2014: 17)
- >84 research reports on Pacific Basin in 2015 (2014: >125)
- 13 analysts attended our 2015 Analyst Day (2014: 22)
2015 Investor Perception Feedback Compelling Factors for Investing in Pacific Basin
Key Investor Concerns in 2015
- Dry bulk market outlook (especially the demand side)
- Impact of bankruptcies on the market, supply, values and banking
- Impact of El Nino on the demand and supply of agricultural commodities and related shipping
- Group’s funding activities and vessel commitments
- Repurchase of Convertible Bonds
- Chartered-in days and margins, breakeven vessel cost
- Potential M&A opportunities
The Company’s Shares and Convertible Bonds at 31 December 2015:
- 1,946,823,119 ordinary shares in issue, each with a par value of US$0.10
- US$106 million of 1.75% coupon Convertible Bonds due 2016
- US$124 million of 1.875% coupon Convertible Bonds due 2018
- US$125 million of 3.25% coupon Convertible Bonds due 2021
The Company’s Shares are a constituent member of the Hang Seng sub index series and the MSCI Index series.
Our Share Price Performance vs Hang Seng Index in 2015
Convertible Bonds Price Performance in 2015
Total Shareholders’ Return
Net Profit and Dividend Payout Ratio since 2005
Our dividend policy is to pay out at least 50% of our annual attributable profit (excluding disposal gains).
As at 31 December 2015, Nasdaq OMX was able to analyse the ownership of about 98.4% of the Company’s share capital. Institutional Investors still accounted for the largest portion of the Company’s shareholder base, owning nearly 1.1 billion shares or 54% of our share capital.
We identified 1,958 shareholders as at 31 December 2015. The actual number of investors interested in our shares is likely to be greater, as some of the shares are held through nominees, investment funds, custodians, etc. Each custodian or nominee or broker is considered as a single shareholder as below.
Our bondholders comprise a range of institutional investors including portfolio fund managers, fixed income, mutual and equal fund holders, as well as private investors.
NO DISTINCTION BETWEEN INSTITUTIONAL INVESTORS AND RETAIL INVESTORS
We listen carefully to the views and feedback we receive from all investors. More than 54% of our shareholders are institutional investors, while 26% are private or retail investors who hold our shares through brokers and custodians. A separate Q&A and dialogue with our Board of Directors is arranged at our Annual General Meeting.