Strong Financial Performance and Strategic Expansion Drive Buy Rating for Hutchison Port Holdings Trust

DBS analyst Paul Yong maintained a Buy rating on Hutchison Port Holdings (HCTPF – Research Report) today and set a price target of $0.20.

Paul Yong has given his Buy rating due to a combination of factors that highlight the potential for Hutchison Port Holdings Trust (HPH Trust) to deliver strong returns. The company has shown a significant increase in earnings for FY24, surpassing expectations by a wide margin, which indicates a robust financial performance. Additionally, despite a slight decrease in the full-year dividend per unit (DPU), the company’s net profit is expected to remain stable in FY25, supported by revenue growth and effective cost control measures.
HPH Trust is a leading port operator in Hong Kong and Shenzhen, with strategic long-term operating rights that position it well for future expansion. The anticipated new capacity from Yantian East Port is expected to support long-term growth from 2025 onwards. Furthermore, the company has a strong cash flow and improving balance sheet, which suggests the potential for higher dividend payouts in the future. These factors, combined with the attractive dividend yield and the expectation of a more promising second half of 2023, contribute to the Buy rating.