CREATING SHAREHOLDERS’ VALUE
We seek to provide the investment community and other stakeholders with
relevant regular news about Pacific Basin so they have comprehensive
information about our business, strategy and performance with which to
assess the value of the Group.
In 2016, we received four awards for investor relations and corporate governance. Our 2015 Annual Report was ranked 19th
globally and rated “A” by e.com (Report Watch). We received a Gold Award at HKICPA’s Best Corporate Governance Awards
for a second consecutive year. Our Online Annual Report also received a Gold Award at the 2015 LACP Vision Awards (in
the transportation & logistics category). Last but not least, we were awarded the Platinum Award – the highest recognition –
at the Asset Corporate Awards 2016 for the third consecutive year for our excellent performance in corporate governance,
social and environmental responsibility and investor relations.
Social media communications continue to be an important communications
channel for the Group. The development of different social media platforms
facilitates communications between the Company and investors, as well
as enhances our corporate brand and provides updated dry bulk market
information to our global stakeholders. Our WeChat account set up last
year enables us to reach out in China to more investors, customers as well
as our crew members.
STAKEHOLDER ENGAGEMENT
We proactively engage with a broad range of institutional and retail investors as well as media and other interest groups.
Communication Channels
– 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:
Financial Reporting
- 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
e-mail: ir@pacificbasin.com
Investor Perception Studies
We conducted 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
Vessel Tours
Ship visits for analysts, investors, press and guests are
organised during vessel port calls or at ship naming
ceremonies
Roadshows
– Roadshows are conducted following
earnings announcements and trading updates. In 2016,
we met investors in 8 cities in North America, Europe and
Asia-Pacific.
Investor Meetings
– In 2016, we met 607 (2015: 594)
shareholders and investors
Company Website
– www.pacificbasin.com
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
- Careers
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
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.
In the interest of saving costs, we changed our Annual Results briefing to a live webcast conference format, which
enables overseas investors unable to physically attend our briefing to listen in to our presentation and ask questions.
KPIs MEASURING INVESTOR RELATIONS PERFORMANCE
Investor Engagement
– 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 an annual written, online and verbal investor study.
Our 2016 Investor Perception Study shows that 87% of respondents consider Pacific Basin management to be good at
articulating strategy, and 92% say we have a very high transparency in our disclosures.
Number of Investors We Met
11 analysts covered Pacific Basin in 2016 (2015: 13)
42 research reports on Pacific Basin in 2016 (2015: 84)
2016 Investor Perception Feedback
Compelling Factors for Investing in Pacific Basin
KEY INVESTOR CONCERNS IN 2016
- Dry bulk market outlook – any further downside market risk especially on demand side
- Bottom of the dry bulk cycle
- Impact of the US presidential election on dry bulk shipping and global trade
- Group’s funding activities and vessel commitments
- Repurchase of Convertible Bonds
- Rights issue and any further share issues or fundraising activities
- Chartered-in days and margins, vessel breakeven cost
- Any further cost saving initiatives
- M&A opportunities
SHARE AND CONVERTIBLE BOND INFORMATION
The Company’s Shares and Convertible Bonds at 31 December 2016:
- 4,015,313,275 ordinary shares in issue, each with a par value of US$0.01
- 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 2016
Convertible Bonds Price
Performance in 2016
Total Shareholders’ Return
Net Profit and Dividend
vs Payout Ratio since 2005
DIVIDEND
Our dividend policy is to pay out at least 50% of our annual attributable profit (excluding disposal gains).
OUR SHAREHOLDERS
As at 31 December 2016, Nasdaq OMX was able to analyse the ownership of about
99.0% of the Company’s share capital. Institutional Investors still accounted for the
largest portion of the Company’s shareholder base, owning nearly 2.4 billion shares
or 60.8% of our share capital.
We identified 2,596 shareholders as at 31 December 2016. 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.
Shareholding |
No. of Shareholders |
% of Shareholders |
Total Holding |
% of ISC |
<=500 |
164 |
6.32% |
6,255 |
0.00% |
501-1,000 |
32 |
1.23% |
30,318 |
0.00% |
1,001-100,000 |
732 |
28.20% |
37,087,094 |
0.92% |
100,001-500,000 |
1,099 |
42.33% |
248,969,653 |
6.20% |
>=500,001 |
569 |
21.92% |
3,729,219,955 |
92.87% |
Total |
2,596 |
100.00% |
4,015,313,275 |
100.00% |
Ownership by Type of Shareholders
Geographical Distribution of our Institutional Investors
OUR BONDHOLDERS
Terms and details of the Convertible Bond
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 61% of
our shareholders are institutional
investors, while 23% 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.
Investors calls after the results
announcement are available to
both institutional investors and the
public.