HPH Trust

HPH Trust: Post DB conference, DB hold a positive view on counter on expectations for China’s export to recover strongly ahead and the company is well positioned to benefit from the rising mega vessel trend. Throughput in 2014 should see some growth, although no specific guidance was given. Given the US/EU recovery ahead, the recovery trend of cargo to these two regions should carry on, which would be extremely positive for margins. Based on HK$40¢ dividend, investors should be able to receive 21.3¢ for 2H13 (HK$18.7¢ were paid out for 1H13), which would translate into 4.0% yield immediately. Even with some downside risk for DPU in 2014, investors should be able to capture 7% yield for the next two rounds of dividend. DB maintains BUY rating with US$0.83 TP.