The unit price of this business trust is so low you might as well paint a target on it

SINGAPORE (Dec 8): DBS Group Research is maintaining its “buy” recommendation for Hutchison Port Holdings Trust (HPHT) with a target price of 48 US cents, even as the trust’s unit price fell to historic lows.

In a Thursday note, DBS analyst Paul Yong said the stock appears to be “oversold at the current price level” trading at 0.6 times its book value and offering a yield of over 8% for FY17.

In fact, Yong believes the group could be “attractive as an acquisition target given its strategic assets” at these levels, and added that HPHT’s major shareholder CK Hutchison is “no stranger to privatisations”.

---

Related Stories

• Brokers’ Digest: CDL, PropNex, PLife REIT, KIT, SingPost, Grand Banks Yachts, Nio, Frencken, ST Engineering, UOB
• Prospects of better FY2025 earnings inspire new ideas for ThaiBev
• Lim & Tan Securities maintains ‘buy’ on Grand Banks Yachts; almost doubles TP to $1.05

---