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