HPH Trust

HPH Trust: CS upgrade to O/p with US$0.86 TP. House opines that Hutchison Port Holdings Trust (HPHT) 1H13's decline in throughput appears to have bottomed out and there are signs that Western consumption is poised to recover. House raise throughput assumptions for the balance of 2013 and 2014, reflecting better PRC export numbers in August and signs that throughput in Kwai Tsing and COSCO-HIT are recovering: August throughput numbers were uniformly positive for HPHT's Hong Kong terminals, which had previously flagged. With rising cash flows, house have increased its distribution estimates for both years, along with our rating from Neutral to OUTPERFORM. yield of 7%, which house believe is appropriate relative to its earnings growth and other SGX-listed yield plays.