In a Wednesday report, analyst Deborah Ong notes that while HPHT has been trading at a historical P/B value of 0.66 times based on its 12 Feb closing price of 26 US cents, she no longer finds its unit levels attractive considering ongoing uncertainties on the macro level.
SINGAPORE (Feb 13): OCBC Investment Research is downgrading its call on Hutchison Port Holdings Trust (HPHT) to “sell” from “hold” while lowering its fair value to 22 US cents as at the close of Feb 12.
The move comes on the back of a large goodwill write-down as reflected in HPHT’s latest set of 2H18 results; its manager’s low DPU guidance of 11-17 HK cents for FY19; as well as “diminishing prospects” of an early termination of a voluntary debt program, in the research house’s view.
