HPH TRUST
HUTCHISON PORT HOLDINGS TRUST
NS8U.SI
HPH Trust - Final Dividend of HK 18.7cts in line, boosted by one-off gain.
Maintain BUY, TP US$0.61.
- Despite full year revenue for HPH Trust being c. 2.5% lower than our expectation at HK$12.6bn, gross profit was 1.9% higher than our forecast at HK$8,040m (+2.9% y-o-y), and including a one-off gain of HK$155m from the divestment of its stake in Zhuhai Jiuzhou International Containers, the net profit of HK$1,745m was above our expectations (core earnings was 6% above our expectation).
- A final dividend of HK 18.7cts (ex on 11 Feb) has been declared, bringing total dividends for 2015 to HK 34.4cts, in line with our expectations, but notably this was boosted by the divestment gain.
- Revenue was flat in-spite of overall throughput declining 1% y-o-y (4% growth for Yantian but 6% decline for HPHT’s HK terminals) as the Group enjoyed higher average tariff and along with cost improvements, managed to grow gross profit by c. 3% y-o-y.
- We expect DPU in 2016F to be c. HK 31cts, or lower by about 10% yo-y.
- Even with a lowered expected DPU, the stock is currently yielding an attractive prospective dividend yield of 8.5%.
- Maintain BUY, TP US$0.61.
Yeo Kee Yan
DBS Vickers
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Ling Lee Keng
DBS Vickers
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http://www.dbsvickers.com/
2016-02-03
DBS Vickers
SGX Stock
Analyst Report
0.61
Same
0.63
