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Business summary
Hutchison Port Holdings Trust is the market leader in the world's largest trading hub by
throughput, the Pearl River Delta. It is mainly engaged in operating two of the world's largest
container ports--Hong Kong and Shenzhen. The trust's sponsor is Hutchison Port Holdings
Limited, the leader in the global container port sector by throughput, and a subsidiary of
Hutchison Whampoa Limited.
Investment case
We believe the major advantage HPH Trust has over its peers is its 100% focus on container ports. It
also has stronger control of its cash flow as more than 90% of its earnings are from the consolidated
business, compared with China Merchants Holdings International and COSCO Pacific that are
heavily reliant on associates’ dividends. HPH Trust has committed to pay out 100% of its
distributable income as dividends, which is well supported by its mature container assets and small
capex requirement in future. Given the incentive system, we believe management is also motivated
to generate higher dividends. We believe Hong Kong and Yantian will continue to be the two most
profitable ports in China, as they have strong pricing power and are able to charge the highest tariffs
in the Pearl River Delta. We like the company for its strong cash flow, high payout, stable asset base
and potential asset injection from Hutchison Port Holdings.
I am pretty sure this one going to push up by BBs soon.....
will today price at bottom line aldy.. tonight if dow up... tomolo u wont get 0.770
from UBS:
First interim result on 3 August to be followed by an investor call
HPH Trust is scheduled to announce its first interim result after market close on 3
August. Senior management (including CEO, CFO and Deputy CFO) is organising
an analyst/investor conference call at 6:30pm HKT on 3 August. We expect exdividend
date to be in mid-August and payable date before end September,
following normal practise.
We are confident on the HK$0.13/unit dividend
Although YTD volume missed guidance, we are confident of management’s
HK$0.13/unit interim dividend guidance. We attribute the reason to better than
expected cost savings (especially from interest expense), as we believe
management is very prudent on its cost budget early this year.
Valuation – Buy with price target of US$1.10
Our price target is DCF based (WACC of 8.3%). We find current yield attractive at
> 8% in 2012E, while we believe it is not likely for dividends to miss although
volume missed.
Highlights
the best counter i had made profit was from STXOSV. bought few at 0.85 then another bought at 0.79. hahahaha now 1.56
upnowhere ( Date: 01-Aug-2011 10:05) Posted:
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just bought few at 0.78.. i should wait a while. hahaha.. anyway few lots dont make much difference.
i wonder did any one wonder that the currency of profits are in HKD or chinese ren min bi. if that is the case shouldnt they take in more profits then normal to equate things?
seems usd has been sustain very well at 1.2.
going lower than this will hurt export industries and more industries...
US$ will keep dropping one. Even if in the next 3 month, the price move up to 0.80. Just based on currency depreciation, you still make nothing.
My personal opinion. Stocks going to be volatile a while. Especially with current megatrends being topsy turvy. But I like some of the reits, purely for the steady distribution rates. Look at K-Reit, Ascott Reit, etc. Even K-Green. Seems like steady 6-8% returns. Even if mother price is flat lined, the distribution is good enough for me in times like these.
edchai ( Date: 31-Jul-2011 20:50) Posted:
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If you don't mind, pleae name a few stocks here. It's time for me to consider to re-shape my portfolio also.
jamesng ( Date: 31-Jul-2011 19:42) Posted:
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why not invest in a stock that its NAV or RNAV is much higher than current price and it dividend yield is also high..there are quite a lot to begin with......
Personally I won't touch this stock. Too many factors out of your control.
US$, China based operation, controlled mainly by LKS with no say by other investors, dividend return in HK$...
There are so many other safer, more transparent stocks to buy with my cash.
stockmarketmind ( Date: 31-Jul-2011 16:07) Posted:
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edchai, most important is you trust yourself and this stock that it will perform!
edchai ( Date: 31-Jul-2011 14:18) Posted:
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Actually, I still think this stock is a safe investment.
With the current SGD-USD exchange rates, I intend to collect some more stock as the prices also low as compared to my initial investment. Any capital gain will be a plus but I anticipated its dividend yield.
I always believe a fraction on my portfolio should be in high dividend yield stocks.
stockmarketmind .... yes, you are right. I have to hold on to it for a much longer time than I initially anticipated.
For those of you who collected this stock at 0.8 or 0.9, I believe there is still further downside. If you can hold, good. If can't then don't touch it at all until you see buying starting to creep in again. I believe it wont touch 0.6 edchai, don't worry. The TP is 0.7 - 0.72
http://stockmarketmindgames.blogspot.com/2011/07/hph-trust-when-is-selling-over.html
2 reason why this counter keeps moving low:
1) USD keeps falling at slow pace.
2) Port business still under pressure to perform.
However, given that USD will somehow stop dropping to some point. This part should be the main reason for HPH to keep dropping. This earning report shall shed some light on its performance. With share price dropping to current level. If they are able to maintain their forecasted DPU payout, maybe it will look interesting to buy some soon.
edchai ( Date: 30-Jul-2011 10:21) Posted:
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At first I thought I got it at discounded price at 0.90, then collect more stock at 0.80 and now wordless ...... Actually, I still intend to collect more stock but prefer wait after 02-Aug.
Just pray hard it won't go down to 0.60 :-)
today looks like a good buy, but i prefer to wait for the perfect entry so my risk is reduced.
bennykusman ( Date: 28-Jul-2011 18:07) Posted:
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Yup I bought a lot @ 0.765~0.77. It's a steep discount from it's IPO price. Rebound is highly likely....