Friday, July 22, 2011
Hutchinson Port: Credit Suisse highlighted that Asian ports are seeing softening volume growth & mixed leading indicators noting Shenzhen only achieved 2% yoy volume growth in 1H11, while Shanghai & Ningbo also saw May & Jun container volume growth slowed to 7-8% & low single-digit. China PMI new export orders further slowed to 50.5 in Jun while US ISM improved, suggesting a possible stronger 3Q11 demand, heading into traditional high season. House rates Cosco Pacific (1199 HK) as its top pick in the port sector for its resilient volume & earnings growth. HPHT is expected to release its 2Q results on 12 Aug. The port trust offers a FY11 yield of 6.2% & trades at 0.8x P/B.