Analyst Paul Yong of DBS maintained a Buy rating on Hutchison Port Holdings (HCTPF – Research Report), with a price target of $0.32.
Paul Yong’s Buy rating for Hutchison Port Holdings Trust (HCTPF) is influenced by a range of strategic and financial considerations. The company is a leading port operator in both Hong Kong and Shenzhen, possessing long-term operating rights and demonstrating market leadership. With existing berths operating at full capacity, the introduction of new capacity from Yantian East Port in 2025 is expected to bolster the Trust’s long-term growth prospects.
Moreover, despite a challenging first half of 2023, Yong anticipates an upswing in the latter half of the year as trade momentum recovers. The Trust’s strong cash flow generation and improved balance sheet suggest potential for maintaining or increasing dividend payouts, with a forecasted dividend yield of 9.6% and 10.6% for the fiscal years 2023 and 2024, respectively. This, combined with a downward trend in gearing, positions the stock favorably in Yong’s assessment, warranting a Buy recommendation despite a reduced target price.
HCTPF’s price has also changed moderately for the past six months – from $0.185 to $0.160, which is a -13.51% drop .
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Hutchison Port Holdings (HCTPF) Company Description:
Hutchison Port Holdings Trust engages in the investment, development, and management of container ports. It also offers port ancillary services. The company was founded on February 25, 2011 and is headquartered in Singapore.
