Hutchison Port Holdings Trust

LKS is a shrewd businessman. That' show he makes money I believe. If he is willing to list, we need to fully understand the motivation behind.

(10-06-2011, 04:05 PM)Musicwhiz Wrote: IPOs do not come cheap anymore. Not that IPOs generally come cheap anyway - they are priced usually to make money for the ones selling shares, and not for the retail investor who subscribes for these shares.

IPOs are not supposed to be cheap most of the time. IPOs = controlling / main shareholders selling out - and these are the people who've spent lots of time, effort on it and know everything about it. No reason why they should sell it to outsiders cheaply.
But at this stage of the market, the big IPOs are fairly decent quality - Hutchison Port, Mapletree Trusts, Glencore, Prada all have fairly good assets.

(11-06-2011, 11:26 AM)redcorolla95 Wrote: But at this stage of the market, the big IPOs are fairly decent quality - Hutchison Port, Mapletree Trusts, Glencore, Prada all have fairly good assets.

True, these IPOs do have decent assets. I guess the question now is how much one should pay for these assets in order to assure oneself of an adequate and consistent return!

nearing 7% yield if DPC is 6 cents (USD)

(12-06-2011, 04:03 AM)Drizzt Wrote: nearing 7% yield if DPC is 6 cents (USD)

It is 7.8% yield based on FY 12 DPU projection. FY 12 will be the first full year performance of the Trust since listing. Gearing is also pretty low. But I am not certain whether the assets are concession based and if so, what happens after it expires ?

(12-06-2011, 02:23 PM)Nick Wrote:

(12-06-2011, 04:03 AM)Drizzt Wrote: nearing 7% yield if DPC is 6 cents (USD)

It is 7.8% yield based on FY 12 DPU projection. FY 12 will be the first full year performance of the Trust since listing. Gearing is also pretty low. But I am not certain whether the assets are concession based and if so, what happens after it expires ?

I don't think gearing is low if net tangible assets are used instead of total equity. I'm not sure if banks will lend against goodwill.

first must make sure, chinese economy will not crash and import and export goes strong, otherwise, whatever port assets, also useless one.

"HPH Trust assets are structured as BOT concessions.
Concession agreements involve terminals that have been
developed by public funds and granted long-term to private
operators, which generally provide the terminal
superstructure, including the major equipment items. Build
Operate and Transfer (BOT) agreements also leave the
ownership of the terminal land in public hands, but grant a
long-term concession to an operator, which finances, builds,
equips and then operates the terminal. These agreements
can typically last from 25 to 50 years, when in theory the
facility is returned to the state. No BOT container terminal
agreements have yet reached their conclusion, so there is no
experience yet of a government taking back a terminal that
has been developed and run in this way." (DBSV 26 Apr 2011 Report)

Since in theory the ports will be handed over to the Govt, should a higher dividend yield be demanded by investors since it forms a return of capital as well ?

Is it normal for Govt to extend the concession period ? I noticed a lot of assets listed in business trust - toll roads, ports, water plants, utilities etc - are BOT in nature.

sounds like k green trust all over again

(12-06-2011, 08:17 PM)Drizzt Wrote: sounds like k green trust all over again

I am not sure how HPH Trust is related to K-Green Trust. Care to share your views?