Hutchinson Port Holdings

Hutchinson Port Holdings: HSBC Initiates at U/W with $0.81 TP, calling Port an OverPriced CashCow. Note that Trust ports’ which operate in the Pearl River Delta (PRD), saw 1Q11 throughput growth +11% yoy, a notable slowdown from 18% for FY10, vs rival ports in Bohai Rim and Yangtze River Delta ports which grew strongly……

Believe rising labour and other operating costs will pose a challenge to the PRD’s near-term growth. In addition, the movement of low-end manufacturing further inland could threaten the region’s long-term growth.