HPH Trust

HPH Trust: CS cut earnings by 12% for both 2013 and 2014 as a consequence of the poor YTD performance and crimped expectations for the balance of the year. The decline in throughput, evident in 1Q13 numbers, has accelerated in Hong Kong (reflecting the impact of the dockworkers’ strike), but also appears to be infecting the formerly growing Shenzhen terminals, where April volumes shrank. CS now forecasts a distribution of HK$0.41/unit in 2013 (down from HK$0.44), which implies a yield of 6.2% based on last closing price of $0.8050. CS maintains UNDERPERFORM, reduces TP to S$0.72 (previously S$0.74), based on a target yield of 7.5%.