HUTCHISON PORT HOLDINGS TRUST (SGX:NS8U)
Hutchison Port Holdings Trust - Good Set Of Results
- FY21 throughput rose 3.5% y-o-y.
- Full year DPU of 14.5 HK cents.
- DPU guidance of no less than 14.5 HK cents for FY22.
Hutchison Port Holdings Trust's FY21 results above expectations
- Hutchison Port Holdings Trust (SGX:NS8U)’s FY21 results came in above our expectations on higher-than-expected throughput volumes and storage income. HPHT’s revenue and other income rose 23.7% y-o-y to HKD13.2b while PATMI jumped 110.1% y-o-y to HKD1.7b, driven by higher average revenue per TEU and container throughput volumes (+3.5% y-o-y), as well as lower finance costs.
- Hutchison Port Holdings Trust's FY21 DPU was 14.5 HK cents which is above management’s previous guidance of 11-13 HK cents and our forecast of 13 HK cents.
Throughput of YICT rose 6.3% y-o-y; Kwai Tsing’s throughput fell 0.1% y-o-y
- The container throughput of Hutchison Port Holdings Trust rose 3.5% y-o-y in FY21, with the throughput of YICT increasing by 6.3% y-o-y while the combined throughput of HPHT Kwai Tsing was marginally down by 0.1% y-o-y. The decline of throughput of HPHT Kwai Tsing was mainly due to port congestion in 2H21 causing delays in moving containers, as a large portion of volume from YICT was diverted to Kwai Tsing after the temporary closure of YICT in May 2021.
- Separately, the growth of throughput of YICT was mainly attributable to an increase in US and EU and empty cargoes
Higher fair value estimate of US$0.28
- Management expects a flattish throughput volume growth in FY22, impacted by global port congestions which is likely to persist in 1H22 due to COVID-19, but could improve in 2H22, notwithstanding another wave of COVID-19 infections. However, we expect storage income (typically accounts for 4-5% of total revenue but raised to over 10% in FY21) to remain strong in FY22 and could provide some buffer to the revenue.
- In terms of DPU, Hutchison Port Holdings Trust's management guided for full-year DPU of no less than 14.5 HK cents for FY22. After adjustments, our fair value estimate for Hutchison Port Holdings Trust increases from US$0.25 to US$0.28.
- See
Chu Peng
OCBC Investment Research
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https://www.iocbc.com/
2022-02-14
SGX Stock
Analyst Report
0.28
UP
0.260
