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