HPH Trust

HPH Trust: Our house initiates coverage of co with a Buy and TP US$0.95. Sustainable distribution yield of 8.4–9.1% is far too attractive to ignore. The trust’s ports have shown strong historical throughput CAGR of ~10% p.a from 1993 to 2011. Volume declines even in crisis times 08 and 09 were marginal at -1% and -4%. Depressed share price is also likely affected by economic growth in China and HK and a mispriced IPO. HPHT remains one of the largest holders of container port assets and yield is attractive compared to regional peers, REITs and business trusts.