Hutchison Port Holdings Trust

[Nick]

Wow dual currency trading soon. This will be welcomed by most local retail unit-holders I guess.

(Not Vested)

[Nick]

Kim Eng has initiated coverage on HPH Trust with a very comprehensive report. Despite the price run up this week, it still trades at a forecast yield of 8.3%.

www.kimengresearch.com.sg/Download.aspx?rPID=10&rN=HPH%20Trust%20Initiation%20041012.pdf [Report]

(Not Vested)

[BeDisciplined]

How come Hitchison 1H 2011 EPS only 11.98 cts but can give 24.05 cts as DPU? Its NTA after DPU dropped.

[Nick]

How come Hitchison 1H 2011 EPS only 11.98 cts but can give 24.05 cts as DPU? Its NTA after DPU dropped.

A business trust payout ability is not limited by its accounting earnings but rather by its cash-flow (or operating earnings). Hence non-cash 'expenses' such as depreciation of PPE and amortization of goodwill are not retained but paid to unit-holders.

[Nick]

Kim Eng has initiated coverage on HPH Trust with a very comprehensive report. Despite the price run up this week, it still trades at a forecast yield of 8.3%.

www.kimengresearch.com.sg/Download.aspx?rPID=10&rN=HPH%20Trust%20Initiation%20041012.pdf [Report]

(Not Vested)

Since this report has been released, HPH Trust share price has appreciated significantly reducing its guided dividend yield from 9.0% on 1st October 2012 to 7.8% currently.

DBSV has written a report yesterday highlighting the double digit growth in Yantian Port volume and expects the Trust to meet its guided FY 2012 DPU of 6.6 US cents per unit.

http://www.remisiers.org/cms_images/rese...sh_buy.pdf [Report]

(Not Vested)

[Nick]

HPH Trust has acquired 2 neighboring berths in HK for S$0.507 billion.

http://info.sgx.com/webcoranncatth.nsf/V...70005F238/$file/HPHTrust_Acquisition_ACTHL.pdf?openelement [Announcement]

DBSV has written a fairly upbeat report with much needed details on this acquisition - https://docs.google.com/viewer?a=v&pid=f...lKATQBAXYy - quite curious whether are any buddies vested in this business trust ?

(Not Vested)

[greengiraffe]

Hi Nick,

I had a narrow escape during the fatal IPO stage.

From experience, when superman sells, its better to stay aside as he seldom leave anything on the table.

HPH is an attractive infrastructure play - port assets - certainly the type of stocks that Macquarie Bank before the GFC is salivating.

Interestingly for HPH to acquire from DP World certainly speaks of certain value for HPH. DP as we know has been in some sort of trouble after free money came to a sudden halt post GFC.

Yesterday, DP also sold another HK logistic operations to ASX Listed Goodman Group:

http://income.com.sg/insurance/MPP/index.asp

Clearly DP is in an exit mode and bargain hunters are swooping in.

The main thing facing HPH appears to be the decline in DPU in 2013 post the firm guidance that came with the IPO for 2011 and 2012.

So far, HPH appears to have fell short of projections according to the IPO prospectus if not for costs cutting and other financial engineering.

I think the street believe that it is an acrretive acquisition. However, if you note the acquisition announcement that is short of details except noting that it is going to accretive speaks of the lack of transparency in outlook for 2013.

I think 2013 being the first year that HPH is no longer bounded by listing prospectus projections contributed to the "muddy waters".

The share price performance post the lifting of trading halt yesterday to today also indicated the lukewarm reception of market participants.

On a macro basis with China restructuring from an export based to domestic consumption model may also result in structural changes to how ports run their business.

I have already glance through most houses reports post the proposed acquisitions. Everyone appears positive. I think HPH is only likely to perform once the first distribution for 2013 is announced.

At the moment, anaylsts are heding their bets projecting a yield of between 7 - 8% for HPH. the 1% range for low growth yield stocks appear to be a big band for the comfort of defensive yield seekers.

Appreciate inputs from any buddies.

GG

HPH Trust has acquired 2 neighboring berths in HK for S$0.507 billion.

http://info.sgx.com/webcoranncatth.nsf/V...70005F238/$file/HPHTrust_Acquisition_ACTHL.pdf?openelement [Announcement]

DBSV has written a fairly upbeat report with much needed details on this acquisition - https://docs.google.com/viewer?a=v&pid=f...lKATQBAXYy - quite curious whether are any buddies vested in this business trust ?

(Not Vested)

[Drizzt]

hi gg, i was one of those who didnt heed the advice that when lks sell you better steer clear and i was burn in the ipo (out of 11 lots bidded i got 8.....)

still it makes me relook this if the market remains low growth if this is a good 7-8% yielder.

Nick mentions to me about the Pearl Delta dying. I wonder if you have explored that.

[greengiraffe]

Hi Drizzt,

I have always been very skeptical about China. Increasingly with wealth disappearing into "smart" hands, those reports about China hollowing is putting me on high alert.

Nevertheless, China remains a big domestic market and hence it is one that must be monitored. The only savings grace here lies in its lack of total free market economy to foreigners. This lack of access is good in a way as its low integration with the rest of the world means its impact at least the negative ones will have less effect on the rest of the world.

One things is however clear - costs is rising and quite rapidly. If we look at Singapore incorporated manufacturers such as Broadway, Hi-P and possibly even YHI, everyone is citing rising costs of labour in China. Hence manufacturing is definitely getting tougher in mainland and hence there must be some structural impact on port operators as well.

Inputs from buddies deeply appreciated.

GG

hi gg, i was one of those who didnt heed the advice that when lks sell you better steer clear and i was burn in the ipo (out of 11 lots bidded i got 8.....)

still it makes me relook this if the market remains low growth if this is a good 7-8% yielder.

Nick mentions to me about the Pearl Delta dying. I wonder if you have explored that.

[Drizzt]

hi gg thanks for the input. there is also much talk about the northern provinces being more vibrant and cheaper.

the way i see it, it will moderate terminallly over time. but by then there will be some damage to revenues.