Tuesday, January 8, 2013

HPH Trust

HPHT: StanChart cited a likely recovery in 2013 for the container ports in China, noting the limited supply growth before 2014. The house expects volume growth in both 2012 and 2013 of 5-7%, from the market gain at HPHT's Yantian port. 2012 DPU of 8% at US$0.81/ share has been guaranteed with funds from planned capex, which the company now needs to borrow for 2013-2016 capex. StanChart forecasts dividend yields of 7% for 2013E, but notes share price upside may be limited given a rally of c. 30% in the last 12 months. The house downgrades the counter to MARKET-WEIGHT with a price target of US$0.81. Do note that container ports are a play on the GDP growth in the region, as the container volume growth is a factor of import/ export numbers.

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