Hutchison Port Holdings (NS8U) AI Stock Analysis

• Market Cap: $1.83B
• Dividend Yield: 7.13%
• Average Volume (3M): 6.41M
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.65
• Revenue Growth: 11.85%
• EPS Growth: 154.55%
• Country: SG
• Employees: 3,384
• Sector: Industrials
• Sector Strength: 76
• Industry: Marine Shipping
• EPS (TTM): <0.01
• Shares Outstanding: 8,711,101,000
• 10 Day Avg. Volume: 4,799,613
• 30 Day Avg. Volume: 6,412,521
• PEG Ratio: 0.10
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 2.76
• Enterprise Value/Market Cap: 3.12
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 1.26
• Enterprise Value/Ebitda: 0.81
• 1Y Price Target: $0.22
• Price Target Upside: 0.00%
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: $0.00 ▼(-100.00% Downside)

The stock score is primarily driven by strong financial performance, particularly profitability and cash flow generation, despite revenue challenges. Technical indicators show potential overbought conditions, suggesting caution. Valuation is reasonable, supported by a high dividend yield, although growth prospects may be limited. Earnings call and corporate events data were not available for analysis.

Positive Factors

Dividends

DPU is revised to 11.0 HKcts in FY25F and 12.0 HKcts in FY26F, implying attractive yields of 10% and 11%, the highest among listed port peers.

Financial Performance

HPHT reported net profit of HKD265.1mn, up 68% year-on-year, beating expectations due to strong Yantian volume and improved cost control.

Trade Relations

The stock has rebounded by 14% from its recent low, reflecting market expectations of a potential deescalation in the US-China trade conflict.

Negative Factors

Earnings Forecast

FY25/FY26 earnings are cut on lower throughput assumptions amid US trade uncertainties.

Interest Rates

Slower-than-expected Fed rate cuts are influencing the stock negatively.

Trade Tensions

There is a concern about Yantian Port's exposure to US-China trade tensions, which may weigh on volumes.

Hutchison Port Holdings Business Overview & Revenue Model

Company Description

Hutchison Port Holdings Trust invests in, develops, operates, and manages deep-water container ports in Guangdong Province of the People's Republic of China, Hong Kong, and Macau. It also invests in other types of port assets, including river ports; and undertakes various port ancillary services, such as trucking, feedering, freight forwarding, supply chain management, warehousing, and distribution services. Hutchison Port Holdings Trust was incorporated in 2011 and is based in Singapore.

How the Company Makes Money

Hutchison Port Holdings generates revenue primarily through the operation of its extensive network of ports. The company's key revenue streams include container handling fees, berthage and wharfage charges, and other port-related services. The company also earns income from ancillary services such as logistics solutions, transportation, and warehousing. Additionally, Hutchison Port Holdings benefits from strategic partnerships and joint ventures with local port authorities and shipping companies, which enhance its market position and operational efficiency. These collaborations, along with its global operational scale, contribute significantly to its earnings.

Hutchison Port Holdings Financial Statement Overview

Summary

The company exhibits strong profitability and cash flow management, with high EBIT, EBITDA, and net profit margins. However, revenue fluctuations pose a challenge to future earnings growth.

Income Statement

Hutchison Port Holdings demonstrates strong profitability with a notable EBIT margin of 39.0% and EBITDA margin of 62.7% for 2024. The gross profit margin is solid at 40.4%, and the net profit margin shows improvement, rising to 5.8% from 2.2% in 2023, indicating better cost control and efficiency. However, the company faces revenue fluctuation, with a decline in total revenue observed over recent years, which could affect future earnings potential.

Balance Sheet

The company maintains a healthy equity ratio of 30.6% in 2024, which indicates a stable capital structure. The debt-to-equity ratio stands at 1.01, suggesting moderate leverage. The return on equity has improved significantly to 2.6% from 0.9% in 2023, reflecting enhanced profitability relative to equity. Nonetheless, the total liabilities remain substantial, indicating potential risk if revenue generation does not improve.

Cash Flow

Hutchison Port Holdings exhibits strong cash flow management, with a growing free cash flow of 19.5% year-over-year. The operating cash flow to net income ratio is robust at 6.8, highlighting efficient conversion of earnings to cash. The free cash flow to net income ratio is exceptionally high at 6.2, indicating excellent cash generation capabilities relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.22B	10.64B	11.99B	13.18B	10.63B
Gross Profit	4.54B	6.75B	4.55B	5.40B	3.75B
EBITDA	7.03B	6.06B	7.23B	8.42B	6.51B
Net Income	649.98M	233.46M	2.52B	3.53B	2.01B
Balance Sheet
Total Assets	81.75B	84.08B	88.65B	92.96B	90.67B
Cash, Cash Equivalents and Short-Term Investments	8.14B	8.19B	10.40B	11.05B	7.77B
Total Debt	25.25B	25.77B	27.18B	29.05B	29.50B
Total Liabilities	39.75B	40.73B	42.37B	45.56B	45.06B
Stockholders Equity	25.03B	25.63B	26.81B	27.11B	26.00B
Cash Flow
Free Cash Flow	4.02B	3.37B	5.34B	6.50B	4.12B
Operating Cash Flow	4.39B	3.86B	5.85B	6.73B	4.58B
Investing Cash Flow	-583.22M	-488.59M	-1.29B	-538.03M	-233.92M
Financing Cash Flow	-3.87B	-5.57B	-5.21B	-2.92B	-3.58B

Hutchison Port Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:NS8U, the sentiment is Positive. The current price of 0.22 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.18, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 71.03 is Negative, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:NS8U.

Hutchison Port Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NS8U	67 Neutral	$1.83B	18.75	3.06%	7.13%	11.85%	154.55%
Sector *	64 Neutral	$10.71B	16.03	7.42%	2.02%	2.57%	-16.39%
W1M	―	€78.08M	6.94	8.97%	―	―	―
5UL	79 Outperform	S$41.36M	0.88	5.32%	263.33%	-86.29%	20.88%
S61	75 Outperform	S$1.00B	14.77	9.82%	8.71%	-2.55%	-0.55%
S56	69 Neutral	S$524.59M	4.31	16.35%	1.53%	16.82%	62.71%
F83	51 Neutral	S$537.42M	46.15	1.18%	―	6.34%	160.00%

Hutchison Port Holdings Corporate Events

Hutchison Port Holdings Issues US$500 Million Notes for Debt Refinancing

Hutchison Port Holdings Management Pte. Limited has announced the issuance of US$500 million in guaranteed notes due in 2030, through its subsidiary HPHT Finance (25) Limited. The proceeds from this issuance are intended to refinance existing debts and support general corporate purposes, potentially impacting the company’s financial stability and operational capabilities in the logistics sector.