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DBS Equity Research: Wired Daily 3 Feb 2016

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Publish date: Thu, 04 Feb 2016, 10:51 AM


HPH Trust - Final Dividend of HK 18.7cts in line, boosted by one-off gain. Maintain BUY, TP US$0.61.

Despite full year revenue for HPH Trust being c. 2.5% lower than our expectation at HK$12.6bn, gross profit was 1.9% higher than our forecast at HK$8,040m (+2.9% y-o-y), and including a one-off gain of HK$155m from the divestment of its stake in Zhuhai Jiuzhou International Containers, the net profit of HK$1,745m was above our expectations (core earnings was 6% above our expectation). A final dividend of HK 18.7cts (ex on 11 Feb) has been declared, bringing total dividends for 2015 to HK 34.4cts, in line with our expectations, but notably this was boosted by the divestment gain. Revenue was flat in-spite of overall throughput declining 1% y-o-y (4% growth for Yantian but 6% decline for HPHT's HK terminals) as the Group enjoyed higher average tariff and along with cost improvements, managed to grow gross profit by c. 3% y-o-y. We expect DPU in 2016F to be c. HK 31cts, or lower by about 10% yo-y. Even with a lowered expected DPU, the stock is currently yielding an attractive prospective dividend yield of 8.5%. Maintain BUY, TP US$0.61.

COSCO Corphas secured a contract from a European buyer to build one 15,000m3 Trailing Suction Hopper Dredger. COSCO Guangdong and the buyer have agreed to keep the contract price confidential. The vessel is scheduled for delivery in the second quarter of 2018.

Genting Hong Kongis expected to record a net profit of not less than US$2bn for FY Dec 15, excluding the share of results of Travellers, as compared with a net profit, excluding the share of results of Travellers, of approximately US$331.7m for FY Dec 14. The increase in net profit is mainly attributable to a total gain of approximately US$658.6m arising from disposals of certain stakes in Norwegian Cruise Line Holdings (NCLH) and one-off accounting gain of US$1,567.4m recognized upon completion of a secondary offering of NCLH's shares.

Technics Oil & Gas is expected to report an operating net loss for Q1 FY2016.

January's purchasing managers' index (PMI) data by the Singapore Institute of Purchasing and Materials Management (SIPMM) went down by 0.5 to reach 49.0, mainly due to a decline in new orders, a drop in factory output and lower employment. On top of that, new export orders have continued to contract since January last year, whereas stocks of finished goods have been accumulating since April last year.

Source: DBS 
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