Hutchison Port Holdings Trust maintained at 'buy' with 78 US cents price target by DBS

Stock Name: HPH Trust USD
Company Name: HUTCHISON PORT HOLDINGS TRUST

Research House: DBS Vickers

Price Call: BUY

Target Price: 0.78

SINGAPORE (Oct 28): DBS Group Research is keeping its "buy" call on Hutchison Port Holdings Trust with a 78 US cents target price.

In an Oct 28 note, DBS believes HPH Trust should be able to maintain its FY14 DPU at levels similar to FY13, despite strong EPS growth.

In 3Q ended Sept, HPH Trust reported net profit of HK$491 million ($80.6 million), down 9% from a year ago. DBS says this was expected as effective tax rates in Yantian increased in FY14 as tax concessions had expired. More encouragingly, operating profit was up 3.5% and PBT was up about 5% as costs stabilised.