HPH Trust

HPH Trust: UBS maintains Neutral with TP US$0.67. Notes that there could be possibility for the Pearl River Delta ports to raise tariffs , and mgt is already negotiating with liners for a potential tariff hike in 2015 to cover additional costs. Already, some other Chinese ports (Shanghai, Qingdao, Ningbo and Xiamen ) have already raised tariffs for 2014. However, this is balanced by concern on dividend downside in 2015. With the company on 100% floating rate, a potential interest rate hike in 2015 is a major risk that could lead to potential dividend payout ratio reduction.