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
- Hutchison Port Holdings Trust saw strong performance in 2H20, boosted by higher volumes of outbound cargoes to the US (+24% y-o-y) and Europe (18% y-o-y) on the back of strong demand from household, hospital personal protective equipment (PPE), catch-up orders due to COVID-19.
- 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.
- While outlook remains uncertain, we expect Hutchison Port Holdings Trust's 1H21 to be stronger than 2H21, supported by e-commerce, PPE, pent-up demand and reopening of economy. We raise our forecasted growth rate for overall throughput volume in FY21 to +1.5% y-o-y and reduce our cost of equity assumption to 8.3%.
- After adjustments, our fair value estimate for Hutchison Port Holdings Trust increases from US$0.18 to US$0.26.
Chu Peng
OCBC Investment Research
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https://www.iocbc.com/
2021-02-09
SGX Stock
Analyst Report
0.26
UP
0.180
