Hutchison Port Holdings Trust - OCBC Investment 2020-02-11: Headwinds Persist

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

Hutchison Port Holdings Trust - Headwinds Persist

  • Weak throughput volume.
  • FY19 DPU was 11 HK cents.
  • Lower Fair Value estimate of US$0.14.



FY19 results were broadly in-line with expectations

  • Hutchison Port Holdings Trust (SGX:NS8U)’s 4QFY19 revenue and other income fell 11% y-o-y to HK$2.7b due to lower container throughput volumes. See Hutchison Port Holdings Trust Announcements.
  • Operating profit decreased by 17% y-o-y to HK$750.7m while PATMI turned from a loss of HK$12.1b in 4QFY18 to HK$62.3m in 4QFY19, mainly due to the absence of impairment loss recorded in 4QFY18. Stripping off the impact of impairment loss of HK$12.3b, PATMI would have been 25% y-o-y lower as compared to 4QFY18.
  • Full-year PATMI was HK$528m, HK$12.1b or 117.8% y-o-y higher than last year. However, if we were to exclude the impact of impairment loss, FY19 PATMI would have dropped 28% y-o-y.


Full-year throughput dropped 3% YoY

  • For FY19, the container throughput of HPHT fell 3% y-o-y, with the throughput of YICT decreasing by 1% y-o-y while the combined throughput of HPHT Kwai Tsing dropped 6% y-o-y, weighed by U.S-China trade tensions and a competitive environment.
  • As expected, US cargo volumes remained weak in 4QFY19, which fell 19% y-o-y due to high base volume in 4QFY18, resulting in an overall decline of 9% y-o-y in FY19. Cargo volumes to Europe, however, rose 4% y-o-y in FY19.


DPU guidance of 8-11 HK cents for FY20






Chu Peng OCBC Investment Research | https://www.iocbc.com/ 2020-02-11
SGX Stock Analyst Report SELL DOWNGRADE HOLD 0.14 DOWN 0.155



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