HPH Trust

HPH Trust: Contract workers of HK International Terminals (HIT) were offered a 7% raise by their employers, compared with the workers’ demand for a 23% increase. Unhappy at the offer, more than 200 workers gathered outside Cheung Kong Center, demanding better pay. About 450 workers, mostly crane operators and stevedores, walked out on Mar 28, seeking higher wages and better working conditions as rising living costs and record home prices spur discontent in the city. Nevertheless, the daily financial loss caused by the strike narrowed to HK$2.4m on Apr 5 from HK$5m earlier as an “increasing number” of workers returned to the port after the strike began. HIT is operated by HPH Trust, along with partner Cosco Pacific, and dominates half of the capacity at HK. The strike in Hong Kong prompted shipping lines to divert vessels to Shenzhen. Terminals controlled by Hutchison Port have a 46% market share in that port. HPH Trust shares have dropped from an early Apr high of US$0.86 to US$0.82 at yday’s close. It trades at 0.8x P/B, offers 8.1% yield.