HPH Trust: DMG initiates with Buy rating and US$0.75 TP. The house says it likes HPH Trust given its three deep-water container ports are strategically located in the Pearl Delta River with dominant market share, collectively accounting for 38% of container throughput vol in the PRD in 2010. Note that the sell-down in shares has more than reflected the slowdown in throughput volumes and FY12F yield at 9.0% is attractive.
Add that HPH Trust has committed to pay out 100% of distributable income, and tips a FY11F (annualised) and F12F DPU of 5.34 US cents and 5.57 US cents respectively; at the current share price, HPH Trust offers 8.6% and 9.0% dividend yield for FY11F (annualised) and FY12F respectively. The yield is higher than the average yield for SG-listed REITs and business trusts.
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