Hutchison Port Holdings Trust - DBS Research 2020-11-17: Poised For Further Re-Rating; FY22F Dividends To Jump

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

Hutchison Port Holdings Trust - Poised For Further Re-Rating; FY22F Dividends To Jump




Brighter outlook on firm Oct volumes and Biden win

  • Yantian’s October throughput jumped 27% y-o-y to 1.148m TEUs, continuing the strong rebound in volumes we’ve seen since June. In the first half of 2020, volumes at Yantian dropped 12.2% y-o-y but increased by 16.1% from July to October 2020.
  • Kwai-Tsing’s October throughput increased 3% y-o-y to 1.249m TEUs, continuing the rebound in volumes seen since June. In 2019, Hutchison Port Holdings Trust (SGX:NS8U)’s volumes in Hong Kong accounted for 70% of Kwai-Tsing volumes.


Raising Hutchison Port Holdings Trust's FY20F and FY21F earnings forecast and longer-term outlook.

  • Even assuming moderating throughput volumes for November and December due to the resurgence of COVID-19 in the U.S. and Europe, we can expect Hutchison Port Holdings Trust’s results to be much better in 2H20 than 1H20 and hence raised our earnings forecasts for FY21F and FY22F by 10.3% and 3.4% respectively by adjusting our throughput assumptions.
  • At the same time, we believe that a Biden win should also ease US-China trade tensions in the medium term, and help China’s export volumes to the U.S. to stabilise.

More confident of higher dividends from FY22F onwards.






Paul YONG CFA DBS Group Research | https://www.dbsvickers.com/ 2020-11-17
SGX Stock Analyst Report BUY MAINTAIN BUY 0.22 UP 0.140



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