Hutchison Port Holdings Trust - OCBC Investment 2020-07-28: Cargo Volume Weighed By COVID-19

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

Hutchison Port Holdings Trust - Cargo Volume Weighed By COVID-19

  • Hutchison Port Holdings Trust's 1H20 DPU fell 28% y-o-y.
  • Impact of Covid-19 on YICT was greater.
  • Expecting volumes recovery in 3Q as countries exit from lockdowns.



Hutchison Port Holdings Trust's 1H20 results above expectations due to government supportive measures

  • Hutchison Port Holdings Trust (SGX:NS8U)’s 1H20 revenue and other income fell 12% y-o-y to HK$4.8b due to lower container throughput volumes (-8% y-o-y).
  • Total operating expenses fell 11% y-o-y to HK$3.4b due to more cost control initiatives, supportive measures from PRC government, RMB depreciation and wages subsidies from the Hong Kong Employment Support Scheme. As such, operating profit decreased by 15% y-o-y to HK$1.4b while PATMI declined 9% y-o-y to HK$212.4m.


YTD June throughput dropped 8% y-o-y

  • The container throughput of Hutchison Port Holdings Trust fell 8% y-o-y, with the throughput of YICT decreasing by 12% y-o-y while the combined throughput of HPHT Kwai Tsing dropped 3% y-o-y. The decline of throughput of HPHT Kwai Tsing was less significant than that of YICT as HPHT Kwai Tsing was positioned as a transshipment hub while YICT was an export hub which saw greater impact from weak export demand due to country lockdowns and U.S.-China trade tensions.


Maintained DPU guidance of 8 -11 HK cents for FY20






Chu Peng OCBC Investment Research | https://www.iocbc.com/ 2020-07-28
SGX Stock Analyst Report HOLD UPGRADE SELL 0.101 DOWN 0.140



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