Hutchison Port forecast: Cloudy with little earnings visibility

SINGAPORE (Oct 26): Hutchison Port Holdings Trust’s (HPHT) is maintaining a “hold” call with fair value at 46 US cents after the port operator reported a 18.2% fall in 3Q earnings to HK$430.2 million ($77.1 million) on the back of a 7% drop in revenue despite lower cost of services.

(See also: HPH Trust’s 3Q earnings plunge 18.2% amid weak transshipment demand)

In a Monday report, lead analyst Deborah Ong says HPHT’s throughput fell more than forecast 8% although the decline has slowed to a single digit following the 12% drop in 1H16. This was mainly due to the decrease in empty and transshipment cargoes outweighing the rebound in US trade.

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