Hutchison Port Holdings Trust unit price flat as it reports a 19.7% decline for Q2 net profit

HPH Trust’s net profit for the second quarter fell by 19.7% to HK$136.5 million, from HK$170.0 million a year ago.

Units of Hutchison Port Holdings (HPH) Trust were flat as investors stand pat on the expected weak second quarter results affected by challenges from the global trade environment.

HPH Trust’s net profit for the second quarter fell by 19.7% to HK$136.5 million, from HK$170.0 million a year ago. Earnings per unit was at 1.57 Hong Kong cents, down from 1.95 Hong Kong cents a year ago.

Revenue fell by 1.4% to HK$2.74 billion, from HK$2.79 billion a year ago.

HPH Trust units were unchanged on Thursday morning, at US$0.225, following the trust's second quarter results release which was put out on the Singapore Exchange after the market closed on Wednesday.

Challenging external environment threatens recovery of global trade

In its results announcement, HPH Trust said that the external global environment continues to be challenging. The trade tensions between the United States (US) and China have heightened in recent months, with new tit-for-tat tariffs imposed in the second quarter of 2019, it said.

‘Trade protectionism, macro-economic and political uncertainties, including the slowing Chinese and European Union (EU) economies and the yet-to-be-resolved Brexit from the EU, threaten the recovery of global trade,’ HPH Trust added.

HPH Trust said the outbound cargoes to the US remained weak in the second quarter of 2019 and it is expected to be volatile in the second half of 2019 as the US-China trade dispute continues.

Given the uncertainties in the global trade outlook, the manager of HPH Trust said that they remain cautious about future cargo trends and will continue to adhere to cost discipline and efficiency improvements in order to face the challenges ahead.

US-China trade negotiations expected to continue to impact HPH Trust

Experts have previously cautioned on the impact of the US-China trade war on the container port business.

‘Despite a decent prospective yield of 7.4% on offer, we remain neutral on HPH Trust as it remains vulnerable to the on-going trade dispute between the US and China as its key port assets in Shenzhen and Hong Kong are heavily exposed to China’s export sector,’ DBS Bank had said in an April report.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.