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
- An interim dividend of 4.30 HK cents was declared as compared to 6 HK cents in 1H19. Management maintained their DPU guidance of 8 -11 HK cents for FY20. See Hutchison Port Holdings Trust Dividend History.
- Throughput volumes started to pick up from second half of May after resumption of economic activities in most of the countries. We could see further recovery in 3Q but we remain cautious on throughput volumes given global economic weakness and continued headwinds from U.S-China trade tensions and Covid-19.
- We trim our forecasted growth rate for overall throughput volume to -7% y-o-y and factor in lower total operating expenses for FY20. After adjustments, our fair value estimate decreases from US$0.14 to US$0.101.
- See Hutchison Port Holdings Trust Share Price; Hutchison Port Holdings Trust Target Price; Hutchison Port Holdings Trust Analyst Reports; Hutchison Port Holdings Trust Dividend History; Hutchison Port Holdings Trust Announcements; Hutchison Port Holdings Trust Latest News.
Chu Peng
OCBC Investment Research
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https://www.iocbc.com/
2020-07-28
SGX Stock
Analyst Report
0.101
DOWN
0.140
