HPH Trust

HPH Trust: HPH Trust monthly container throughput volumes are running below CLSA expectations with Yantian underperforming the Shenzhen market (2.2% vs 2.6% y/y year-to-date) and Hong Kong port volumes down 6.4% through April from the strike. House reduces its forecast on throughput growth, and maintains SELL with TP of US$0.74. CLSA trim its total throughput forecast to 3.5% (from 5.2%) which results in 1.4-1.6% cuts to revenue. With the Hong Kong strike over, house raise labour costs by 1.7% in FY13 due to one-off bonus of HK$9,000 per employee and 9.8% wage increase for Hong Kong contractors. Consequently, CLSA's DPU estimates are cut by 3.4% y/y due to reduced revenue and increased costs, resulting in DPU of HK$0.416/unit and implying 6.8% dividend yield.