Tuesday, April 26, 2011

Hutchison Port Holdings

Hutchison Port Holdings: JP Morgan initiate at O/W with $1.15 TP. Note payout is well-supported by steady cash flows from mature ports, with substantial part of growth capex pre-funded. Add that grp has a premium container ports capable of delivering consistent performance despite concerns over moderating outlook for the captive hinterland.

Hutchison Port Holdings: Morgan Stanley Initiates at E/W with $0.98 TP. Note that Trust is an attractive Yield Play with limited near-term upside. Add that HPH Trust’s 100% DPU payout policy offers an attractive yield of 6%, but e find the stock fairly valued vs peers. Based on house 2011 annualized DPU of US$0.06/share, Trust offers a 6.2% yield, similar to 2011E yields for REITS listed on SGX, while its FY11E EV/EBITDA of 16.3x exceeds those of such shipping peers as COSCO Pacific.

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