atans1

Posts Tagged ‘Hutchinson Port’

HPH Trust: Cost of strike settlement

In Infrastructure on 08/05/2013 at 7:29 am

Port workers in HK agreed to a pay increase of 9.8%, after initially demanding a hike of more than 20%. This works out to an increase of 5.6% to the costs of HPH Trust.

Earlier post: http://atans1.wordpress.com/2013/04/25/hph-trust-time-to-buy/

Can now focus on analysing the revenue prospects. Watch this space.

HPH Trust: Time to buy?

In Infrastructure on 25/04/2013 at 6:27 am

Is it worth a buy? HPH Trust has fallen 4% since the strike in HK. Its handling capacity is back above 80%, having fallen to below 50% when the strike began. But the gap between oits wage offer (7%) and the strikers’ 20% demand, is big. And even its 7% offer adds 4% to total costs calculates CLSA.

And there is China’s slowdown and competition.

Nah let’s wait to see the terms of the settlement. Remember buy this for yield, not capital appreciation.

DBS bullish on Hutch Port at US$0.95

In China, Infrastructure on 02/06/2011 at 6:29 am

Find it difficult to poke holes in DBS’ analysis. But note DBS was one of the IPO mgr and that HPH is trading below its IPO price of US$1.01. DBS says:

Firm prospects over the short and medium term. We like HPH Trust for its stable and growing earnings profile, which we believe will be driven by continued rising trade volumes into and out of the Pearl River Delta region, translating into an annual growth of 10 per cent in distributions to unit-holders for the next few years.

HPH Trust is due to report its interim results by mid-August, and we are expecting a distribution per unit (DPU) of about 1.8 US cents to be declared.

Maintain ‘buy’ and US$1.15 TP. Given that HPH Trust seems to be well on its way to meeting our projections in FY2011 and FY2012, current FY2011 and FY2012 yields look very attractive at 6.6 per cent and 7.2 per cent, respectively; expect DPU compound annual growth rate of 10 per cent up to 2013.

Our target price implies a total return potential in excess of 30 per cent at current prices. Among Singapore-listed Reits, business trusts and high yield plays, HPH Trust offers one of the highest combinations of yield and DPU growth.
BUY

Hutch Port listing: I goofed

In Infrastructure on 08/03/2011 at 10:15 am

I blogged that I doubted it could happen because HK would change its rules and allow the listing there.

Funny HK allows a highly leveraged Russian co to list, but doesn’t allow “Superman” to list this trust. Buyer beware.

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