HPH Trust

HPH Trust: Daiwa maintains o/p but cuts TP to $0.84 from $0.90. Note that dividend growth may come under pressure. Mgt stated that the 1st berth of West Port phase II at Yantian Port should be finished by the beginning of 2014 (deferred from 2013), with the 2nd berth completed by 2015 and the 3rd berth by 2016. Mgt expects interest costs to be higher from 2014 due to the refinancing of a HKD3bn loan that expires in February 2014. Mgt believes 2012 capex should not exceed HKD1.0bn, and expects capex of about HKD1.0bn for each of 2013 and 2014. Sees a challenging outlook in 4Q12 due to slow throughput growth in southern China. reduce 2012-14 EPS forecasts by 1-8% to take into account the recent slowdown in throughput growth in southern China and higher anticipated interest costs for 2014. forecast a flat DPU of close to HKD0.50 for 2013-14.