Hutchison Port Holdings Trust - OCBC Investment 2021-02-09: FY20 Better Than Expected

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

Hutchison Port Holdings Trust - FY20 Better Than Expected

  • Hutchison Port Holdings Trust's FY20 DPU was HK$0.12.
  • Outbound cargoes to the US and Europe grew 5% y-o-y.
  • Likely to benefit from strong e-commerce and PPE demand.



Hutchison Port Holdings Trust's FY20 results above expectations

  • Hutchison Port Holdings Trust (HPHT, SGX:NS8U)’s FY20 results came in above our expectations on higher throughput volumes and lower finance costs.
  • Hutchison Port Holdings Trust’s revenue and other income fell 3.7% y-o-y to HK$10.7b due to lower average revenue per TEU, albeit higher container throughput volumes (+2% y-o-y). Operating profit increased by 2.2% y-o-y to HK$3.5b on lower operating expenses (-6% y-o-y) while PATMI grew 57.4% y-o-y to HK$831.4m.
  • FY20 DPU was HK$0.12 which is above management’s previous guidance of HK$0.08 to HK$0.11 and our forecast of HK$0.09..


FY20 throughput rose 2% y-o-y

  • The container throughput of Hutchison Port Holdings Trust rose 2.0% y-o-y in FY20, with the throughput of YICT increasing by 2.1% y-o-y while the combined throughput of HPHT Kwai Tsing grew 0.6% y-o-y. The growth of throughput of HPHT Kwai Tsing was mainly due to higher transshipment cargoes, but partially offset by the decrease in intra-Asia and US cargoes.
  • Separately, the growth of throughput of YICT was mainly attributable to an increase in US and EU and transshipment cargoes, but partially offset by a decline in empty cargoes.

Higher Fair Value Estimate of US$0.26






Chu Peng OCBC Investment Research | https://www.iocbc.com/ 2021-02-09
SGX Stock Analyst Report BUY UPGRADE HOLD 0.26 UP 0.180



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