Hutchison Port Holdings Trust - OCBC Investment 2017-02-03: HK Kwai Tsing throughput recovery continues in Dec

Hutchison Port Holdings Trust - OCBC Investment 2017-02-03: HK Kwai Tsing throughput recovery continues in Dec HUTCHISON PORT HOLDINGS TRUST NS8U.SI

Hutchison Port Holdings Trust - HK Kwai Tsing throughput recovery continues in Dec

  • Hong Kong Kwai Tsing container throughput posted a +12.7% YoY gain to 1.4m TEU for the month of Dec 2016, a sign of continued recovery with YoY growth rates steadily improving since the 17.6% decline clocked in Feb 2016. 
  • On a yearly basis, HK Kwai Tsing container throughput fell 2.4% YoY to 15.2m TEU, close to 2009 levels or the lowest in the past ten years. 
  • For Hutchison Port Holdings Trust (HPHT), we keep to our assumptions for throughput growth of 2% in FY17 for now. 
  • Looking forward, we expect the alliances to negotiate contracts with terminals, a process which may introduce volatility in both throughput and tariff rates. 
  • Nonetheless, we believe HPHT is in a good stead to compete for contracts, especially after its Kwai Tsing comanagement agreement. 
  • We reiterate BUY on HPHT with a fair value of US$0.46.




Deborah Ong OCBC Investment | http://www.ocbcresearch.com/ 2017-02-03
OCBC Investment SGX Stock Analyst Report BUY Maintain BUY 0.460 Same 0.460



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