Hutchison Port Holdings Trust - OCBC Investment 2016-05-27: Kwai Tsing container throughput down 9.0% YoY in April

Hutchison Port Holdings Trust - OCBC Investment 2016-05-27: Kwai Tsing container throughput down 9.0% YoY in April HUTCHISON PORT HOLDINGS TRUST NS8U.SI 

HPH Trust: Kwai Tsing container throughput down 9.0% YoY in April

  • April figures continue to indicate weakness for Hong Kong Kwai Tsing Container Terminals. Throughput came in at 1.2m TEU, which represented a 9.0% YoY decline. 
  • For Shenzhen, monthly throughput came in at 1.9m TEU, or a 4% YoY increase. 
  • YTD, container throughput at Kwai Tsing is down 11.1%, while that at Shenzhen is flat at 0.1% lower than the corresponding period last year. 
  • Smaller Asian and European container-shipping operators, including the world’s No. 6 player by capacity – Hapag-Lloyd, have banded together to form a new alliance in response to the recent wave of consolidation by dominant players. 
  • Given the continued weakness in container throughput at Kwai Tsing and the ongoing consolidation, we remain concerned that the management-guided improvement in Hutchison Port Holdings Trust’s (HPH Trust) 2H operating results will not realize. 
  • Maintain HOLD with US$0.46 fair value estimate.




Deborah Ong OCBC Securities | http://www.ocbcresearch.com/ 2016-05-27
OCBC Securities SGX Stock Analyst Report HOLD Maintain HOLD 0.46 Same 0.46


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