HPH Trust

HPH Trust: Yantian Throughput +1.1% YoY in June, COSCO-HIT -1.9%. Citi estimates 2Q12 throughput growth of ~7% at HIT and 4% at Yantian, with combined throughput at HPH improving 5.4% during the quarter (modest accln vs 4.3% growth in 1Q12). Notes, following 1Q12 results, mgt reaffirmed its FY12 throughput growth guidance in the 5-7% range. Nevertheless the house keeps its Sell rating with US$0.66 TP, reflecting an avg of the 2012 consensus 12x P/E for its closest listed comparables (COSCO Pacific - 1199.HK and China Merchants - 144.HK) as well as the value implied by its DDM.