HPHT

HPHT: Barclays lowers EPS for 2015/16E, lowered TP to $.78 (from $0.80) while maintaining Neutral on the counter.

HPHT is set to benefit from container volume growth from continued economic recovery in US and Europe. Interest rates risk exposure is lower after having refined US$1b floating rate debt with 3- and 5-year fixed rate notes at 100bps below expectations.

However, volume growth is likely to be mostly from lower-tariff trans-shipment volumes, and with higher tax rate expected, EPS is lowered by 10% to imply annual growth rate of 6% in FY15/16E.

Upside catalysts include: increased economic activity in Europe and larger tariff growth in Yantian and Hong Kong ports. Downside risks include: high gearing and high sensitivity to interest rate changes, slowdown and stagnate in developed market consumption.