HPH Trust

HPH Trust: UBS maintains Buy with TP US$1.10. Note that recent vol trend weak, but looking for peak season shipping routes in Jul which should help lift the vol. Long-term vol to grow 6-7%, plus ASP improvement each year as they move HKD-denominated tariff towards Rmb. A strong SGD may discourage SG investor to hold the stock as the company pays out in USD. Mgt also confirmed that they will think of coming to HK mkt if business trust is allowed in HK.