HPH Trust

HPH Trust: DB reduced 2013E DPU to HKD40¢ after cutting earnings due to HPH Trust's lower-than-expected volume year-to-date. Management has also toned down its guidance to flat y/y volume growth in 2013 (vs. 5% growth previously). However, on the back of the acceleration of G3 growth and the strong recovery of the US housing sector, we expect China’s exports to improve 2H onward. The US housing recovery bodes particularly well for container volume since furniture is the largest containerized cargo. As mega-sized ships offer huge cost advantages, DB foresee that there will be a round of ordering of these mega-sized ships, which would greatly benefit HPH Trust. At the current USD0.76, HPH Trust trades at an attractive 6.8% 2013e yield. DB maintains its BUY rating with TP of USD0.83.