Hutchison Port Holdings Trust - OCBC Investment 2019-02-25: Recent Selldown; Unchanged Fair Value

HUTCHISON PORT HOLDINGS TRUST (SGX:NS8U) | SGinvestors.io HUTCHISON PORT HOLDINGS TRUST (SGX:NS8U)

Hutchison Port Holdings Trust - Recent Selldown; Unchanged Fair Value




Underperformed STI by 7.7 ppt since our downgrade



Trade deal in the works?

  • Trade negotiations between China and the US are ongoing with a deal looking increasingly likely. President Trump announced on Sunday that he will delay the tariffs that were scheduled to begin on 1 March, citing “substantial progress” in trade talks.
  • Going forward, while a trade deal would
    1. boost investor sentiment for port stocks like Hutchison Port Holdings Trust, and
    2. help to reduce the probability (or the extent) of a decline in throughput volumes for US in the near-term,
  • there still remains other structural challenges for Hutchison Port Holdings Trust, especially for its Kwai Tsing ports.
  • Under our coverage, we prefer COSCO SHIPPING Ports (1199 HK) as well as China Merchants Port Holdings.
  • Our fair value remains at US$0.22. Given the recent Hutchison Port Holdings Trust’s share price decline, we upgrade Hutchison Port Holdings Trust from Sell to HOLD.





Deborah Ong OCBC Investment Research | https://www.iocbc.com/ 2019-02-25
SGX Stock Analyst Report HOLD UPGRADE SELL 0.220 SAME 0.220



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