Hutchison Port Holdings Trust

[Greenrookie]

After Hong Kong, now yantian in shenzhen:

China's Shenzhen Docks 'Paralyzed' by Strike Over Benefits

http://www.hellenicshippingnews.com/News...27a232d96b

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Not sure if Yantian International Container Port Co is the same as the Yantian International Container terminal, which is owned by HPHT, looking at the TEU throughput figures, it looks like the same.

Then look at HIT

Hong Kong strikes impact Maersk Line reliability in Q2

http://www.hellenicshippingnews.com/News...c23f40c04a

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It will still be a cash cow for years to come, I have no doubt, but at what yield? There is another buy call from analysis for HPHT.

(Not vested)

[felixleong]

pardon me for being a noob, I somehow don't quite understand how HPH earnings work
I realize the yield is quite high at 7%, but how come the PE ratio for HPH is over 20 times earnings?
How can they earn so little yet pay out so much?

sorry I'm quite new to evaluating stocks such as trusts

[AlphaQuant]

How can they earn so little yet pay out so much?

sorry I'm quite new to evaluating stocks such as trusts

well trusts pay dividends out of operating cashflow, not out of earnings (which includes reval of assets, depreciation etc).

so the question to ask is: given that eps differs so much from the dpu, how sustainable is the payout or is this just going to end up as a self-liquidating vehicle returning capital in the disguise of dividends?

[Greenrookie]

pardon me for being a noob, I somehow don't quite understand how HPH earnings work
I realize the yield is quite high at 7%

Actually the yield of 7 % is derived assuming 2H is a stronger half and more DPu will be paid out. I agree 2H will be a stronger half due to seasonale factors. But given margin at 2 ports are falling, and I don't expect strong growth, how are they going to pay more with capex of about 1 billion in 2H? Of course, if there is a will to pay more, they can postphone capex again when they say they won't or use other means such as retained earnings perhaps? But how will that be sustainable? I would rather calculate yield based on FCF, which to me is more sustainable. And it sucks, because Capex should remain high over the next few years due to Yantian phase 3 expansion

[felixleong]

thanks for the replies, yeah I think its a big question mark on whether the yield is sustainable or not
a rights issue will be a big hit to shareholders

[specuvestor]

30% wage hike

http://www.aastocks.com/en/news/HK6/now....ount3.html

[CityFarmer]

30% wage hike

http://www.aastocks.com/en/news/HK6/now....ount3.html

30% increment is RMB 1700, so the average salary is ~ RMB 7400 after the increment... Hmm... isn't too high?

(not vested)

[Greenrookie]

China cabotage rules benefit Hong Kong: HIT

http://www.hellenicshippingnews.com/News...f98f65cace

(NOt vested)

[mkmk]

Financial Statement: http://infopub.sgx.com/FileOpen/HPHTrust...eID=260397

Presentation: http://infopub.sgx.com/FileOpen/HPHTrust...eID=260403

3Q13 Results Summary
• YTD September 2013 throughput of HPH Trust’s deep-water ports was 2% below last year. Combined throughput of HIT, COSCO-HIT and ACT was down by 4% yoy and YICT’s throughput was about the same as last year
• There are some signs of improvement on the horizon for the US-bound trade, but the cargo traffic to EU remains soft. Throughput growth of YICT was mainly driven by transshipment cargoes but offset by lower empty volume. HIT’s throughput drop was mainly due to weaker transshipment, intra-Asia and US/EU cargoes
• Revenue and other income was about the same as last year. NPAT and NPAT attributable to unitholders was 8% and 17% below last year respectively after payments of performance fee and acquisition related costs of ACT
• US$3.6 billion Term Loan Facility Agreement for the refinancing of the existing facilities was signed in late September 2013
• The normalised NPAT was 5% below last year due to higher profit from YICT but partially offset by lower profit in HIT. Normalised NPAT attributable to unitholders was 13% below last year as Trust has 100% interests in HIT but only has 52% to 56% interests in YICT

(Not vested)

[Greenrookie]

Look likes they are holding off capex for yet another year when they say they won't. That is about 700 million to 1 billion for yantian expansion.

Hold it off till the economic tide improve? Sound like a great idea except that the concessions while is for 30- 55 years, is up for review every 3 years, the capex cannot be pushed back indefinitely ...
(Not vested)