SINGAPORE (June 7): OCBC Investment Research is maintaining its “buy” call on Hutchison Port Holdings Trust (HPHT) with a lower fair value of 37.5 US cents compared to 43 US cents previously after updating beta assumptions, which has resulted a higher cost of equity of 10% from 8.8% before.

In a Thursday report, lead analyst Deborah Ong says the continued “buy” rating comes in view of the significant value she sees at HPHT’s current unit price, especially given the 22.4% upside to her fair value estimate with an 8.8% FY18F yield as at the trust’s Wednesday close of 30.5 US cents.  

Despite HPHT’s 26.5% unit price underperformance YTD, Ong notes that it has rallied 10.9% in less than a week since June 1 and 7% on June 6 alone, with still more room to go... (Click here to read the full story)