HPH Trust

HPH Trust: good set of 1H12 results, largely in line with consensus. Net profit at HK$1.04b, flat yoy. Importantly, an interim dividend of HK$0.2405 was declared. Mgt reiterated full year target of HK$0.51 despite a weaker outlook. Deutsche notes the risk of missing its 8%+ payout in 2012 is extremely low, given HPHT’s satisfactory throughput growth of 5% ytd, and its flexibility to defer capex to ensure its div commitment to sh/h. HPHT throughput has risen 5% ytd with HK Int’l Terminal (HIT) up 8% mainly driven by transshipment cargo. Yantian’s ytd throughput growth is at 2% inline with Shenzhen’s ytd 2% growth. Ytd ASP has risen 1.5%. The co maintains throughput guidance of 5% and ASP growth of 1-2% for 2012. Nevertheless, mgt cites a challenging 2H12 operating environment, with the US showing signs of improvement but still fragile, and Europe to remain weak. Deutsche reiterates Buy with TP US$0.87, recommends to investors looking for a low risk, high-yield equity in times of uncertainty like today. HSBC however downgrades to Neutral, says the stock has rallied 25% ytd and is one of the best performing marine stocks. Keeps TP at US$0.76.