Singapore-listed Hutchison Port Holdings Trust (HPHT.SI), which owns port assets, rose on Thursday after financial results beat its own forecast as better cost savings offset softer revenue.
At 10:31 a.m., Hutchison Port was up 2.7% at US$0.755 ($0.934) on a volume of 19.6 million units, the top traded by volume so far. The broader Straits Times Index <.FTSTI> was down 0.1%.
Prior to the release of Hutchison Port’s results on Wednesday, its units had fallen around 3% since the start of the week, hurt by volume growth concerns, a weak U.S. dollar and cautious general market sentiment.
“The result beat the forecast, but there are still concerns about the weak U.S. dollar and the volumes,” said a local trader. “The shipping sector has also been hit recently.”
Hutchison Port announced net profit attributable to unitholders of HK$653.7 million ($101 million), around 13% higher than the company guidance, for the financial period from Feb 25 to June 30.
DBS Vickers said in a report that Hutchison Port’s lower-than-expected revenues were offset by decreased operating and interest expenses. It added that the firm’s yield of around 8% is attractive and maintained its buy call on the stock.
However, Citi said it expects weakened end-consumer demand in the U.S. and Europe through the year-end and cut its target price on Hutchison Port to US$0.63 from US$0.78.
Hutchison Port made its debut in the Singapore market in March with an offer price of US$1.01.
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