After Hong Kong, now yantian in shenzhen:
China's Shenzhen Docks 'Paralyzed' by Strike Over Benefits
http://www.hellenicshippingnews.com/News...27a232d96b
----------
Not sure if Yantian International Container Port Co is the same as the Yantian International Container terminal, which is owned by HPHT, looking at the TEU throughput figures, it looks like the same.
Then look at HIT
Hong Kong strikes impact Maersk Line reliability in Q2
http://www.hellenicshippingnews.com/News...c23f40c04a
---------------------
It will still be a cash cow for years to come, I have no doubt, but at what yield? There is another buy call from analysis for HPHT.
(Not vested)
pardon me for being a noob, I somehow don't quite understand how HPH earnings work
I realize the yield is quite high at 7%, but how come the PE ratio for HPH is over 20 times earnings?
How can they earn so little yet pay out so much?
sorry I'm quite new to evaluating stocks such as trusts
(04-09-2013, 05:02 PM)felixleong Wrote: [ -> ]How can they earn so little yet pay out so much?
sorry I'm quite new to evaluating stocks such as trusts
well trusts pay dividends out of operating cashflow, not out of earnings (which includes reval of assets, depreciation etc).
so the question to ask is: given that eps differs so much from the dpu, how sustainable is the payout or is this just going to end up as a self-liquidating vehicle returning capital in the disguise of dividends?
(04-09-2013, 05:02 PM)felixleong Wrote: [ -> ]pardon me for being a noob, I somehow don't quite understand how HPH earnings work
I realize the yield is quite high at 7%
Actually the yield of 7 % is derived assuming 2H is a stronger half and more DPu will be paid out. I agree 2H will be a stronger half due to seasonale factors. But given margin at 2 ports are falling, and I don't expect strong growth, how are they going to pay more with capex of about 1 billion in 2H? Of course, if there is a will to pay more, they can postphone capex again when they say they won't or use other means such as retained earnings perhaps? But how will that be sustainable? I would rather calculate yield based on FCF, which to me is more sustainable. And it sucks, because Capex should remain high over the next few years due to Yantian phase 3 expansion
thanks for the replies, yeah I think its a big question mark on whether the yield is sustainable or not
a rights issue will be a big hit to shareholders
Look likes they are holding off capex for yet another year when they say they won't. That is about 700 million to 1 billion for yantian expansion.
Hold it off till the economic tide improve? Sound like a great idea except that the concessions while is for 30- 55 years, is up for review every 3 years, the capex cannot be pushed back indefinitely ...
(Not vested)