Hutchison Port Holdings Trust - DBS Research 2023-02-08: Dividend Upside To Drive Re-rating

Hutchison Port Holdings Trust - Dividend Upside To Drive Re-rating

Published:
HUTCHISON PORT HOLDINGS TRUST (SGX:NS8U) | SGinvestors.ioHUTCHISON PORT HOLDINGS TRUST (SGX:NS8U)
  • Hutchison Port Holdings Trust (SGX:NS8U) reported FY22 net profit of HK$1,099m, which is 8% below our forecast, representing a 37% decline y-o-y. Revenue fell by 8% y-o-y to HK$12.2bn in FY22 from HK$13.2m in FY21, due to:
    1. - Read this at SGinvestors.io -
    2. lower storage income at Yantian, although partially offset by higher storage income at HK ports;
    3. a change in cargo mix; and
    4. RMB depreciation.
  • Other operating income declined by 65% y-o-y to HK$146.2m as a result of lower government subsidies.
  • As interest rates have spiked, Hutchison Port Holdings Trust’s interest costs rose by 9.2% y-o-y to HK$673.3m in FY22. However, going forward, this will be mitigated by continual debt repayment and interest rate hedges on ~71% of its long-term debt as at 31 December 2022 - See Hutchison Port Holdings Trust's announcements dated 07 Feb 2022.
  • - Read this at SGinvestors.io -
  • Management guided for DPU of HK$0.14 to HK$0.15 in FY23F, but we expect DPU to come in at the top end of the guidance, at HK$0.15 in FY23F. Further, we believe that that there is room for Hutchison Port Holdings Trust's DPU to be raised to HK$0.20 in FY24F as the Trust deleverages to an all-time low and the Fed rate hike cycle ends. See Hutchison Port Holdings Trust's dividend history.

Well positioned to benefit from China’s reopening.

  • Read more at SGinvestors.io.



Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.



Paul YONG DBS Group Research | Tabitha FOO DBS Research | https://www.dbs.com/insightsdirect/ 2023-02-08



Read also DBS's most recent report:
2025-04-30 Hutchison Port Holdings Trust - Front-loading Supports 1Q25, Trade Risks Remain..

Previous report by DBS:
2025-02-10 Hutchison Port Holdings Trust - FY24 DPU Misses But Yield Stays Appealing.

Price targets by other brokers at Hutchison Port Holdings Trust Target Prices.

Listing of research reports at Hutchison Port Holdings Trust Analyst Reports.

Relevant links:
Hutchison Port Holdings Trust Share Price History,
Hutchison Port Holdings Trust Announcements,
Hutchison Port Holdings Trust Dividend Payout Dates & Corporate Actions,
Hutchison Port Holdings Trust News






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