HPHT

HPHT: 2H14 DPU of HK$0.223 maintained, bringing full year DPU to HK$0.41, in line with guidance.

4Q14 swung to a net loss of HK$18.6b, due to a massive HK$19b goodwill impairment allocated to a cash generating unit in HK, as it is adversely impacted by uncertainties in global outlook, challenging trade environment, and rising labor costs.
Excluding the impairment charge, profit would have been 16.5% y/y higher at HK$390m.

Revenue rose 2.2%, mainly from volume growth. Container throughput at Hong Kong decreased 1% due to weaker intra-Asia cargoes, offset by higher transshipment volume. Yantian Terminals throughput increased 9.2% due to US and empty cargoes transshipment growth.

Average revenue/TEU for HK grew due to fewer concessions granted and favourable throughput mix, at Yantian, rates were lower due to a higher proportion of transshipment throughput handled.
The impairment charge, though it is a one-off and non-cash item, does flag that the mid-long term outlook at the HK ops is anything but rosy.

For FY15, management is guiding DPU of HK$0.33-0.36.

Assuming the upper end of guided FY15 DPU of HK$0.36, HPHT is currently trading at FY15e 6.9% yield.