HPH Trust

HPH Trust: Quick update from DB on the on-going strike at HPH Trust's port, that operations have returned to around 80% of pre-strike level from 50% at the early period of the strike. Previously, mgmt estimated that daily revenue loss would be around HK$5m. With operations gradually picking up, DB think the revenue loss currently should be a lot less vs. initial stage of the strike. Based on numbers from 2012, DB estimate that its terminals in Hong Kong generated a total of HK$5.4bn revenue. Even assuming HK$5m loss a day, the total revenue loss since strike would only account for 1% of total revenue generated in its HK terminals in 2012. Counter lost 4.1% since the demonstrations started, currently trading at 24.4x trailing P/E, vs its 22.5x historical mean, 24.6x +1 std dev.