Singapore Company Guide Hutchison Port Holdings Trust Version 5 | Bloomberg: HPHT SP | Reuters: HPHT.SI Refer to important disclosures at the end of this report DBS Group Research . Equity 8 Dec 2016 BUY Acquire or be acquired Last Traded Price ( 7 Dec 2016): US$0.42 (STI : 2,959.84) Price Target 12-mth: US$0.48 (14% upside) (Prev US$0.56) Unexciting outlook but stock looks oversold – BUY. Hutchison Port Holdings Trust (HPHT) offers investors an attractive 8.3% Potential Catalyst: Recovery in throughput volumes prospective yield even after our DPU forecast cut, and looks Where we differ: We have higher than consensus EPS and DPU forecasts oversold at the current price level. Further upside could come from Analyst a stronger-than-expected recovery in China’s exports, acquisition- Paul YONG CFA +65 6682 3712
[email protected] driven growth or privatisation by its major shareholders. Singapore Research Team Potential for acquisition-driven growth as organic growth stalls. What’s New Aside from the acquisition of ACT in 2013, which was partially HPHT stands at a crossroads given its sluggish sold down soon after, and declining to acquire a 50% equity outlook, declining DPU and depressed stock price interest in Zhuhai International Container Terminals, all has been quiet on the inorganic front for HPH Trust since 2011. Given that Acquisitions could help boost longer-term growth DPU is a critical factor for share price, we opine that HPH Trust should look out for acquisitions to boost longer-term DPU, taking Privatisation by major shareholders cannot be ruled into account its relatively benign gearing level.