COSCO Pacific: Potential Qingdao Port IPO could

l Equity Research l
China l Industrial Transportation
16 April 2014
COSCO Pacific
Potential Qingdao Port IPO could crystallise value
 COSCO Pacific’s (CP) valuation at 11x 2014E PER is  OUTPERFORM (unchanged)
compelling, in our view. Both forward PER and PBR are
PRICE as of 15 Apr 2014
PRICE TARGET
lower than 1SD below the five-year average.
 1Q14 ended with the closure of CP’s USD 212mn acquisition
of a stake in Asia Container Terminal (ACT). We think CP is
back in the acquisition mode, which should drive nonorganic growth higher.
 A potential IPO in the China port sector in 2014 could be a
catalyst.
ACT acquisition to facilitate mega vessel calls. In March 2014,
CP acquired a 40% stake in ACT from Hutchison Port (HPHT SP,
OP, PT SGD 0.75) at a USD 212mn consideration. The deal
valuation appears inexpensive from an assets perspective, but
expensive from an earnings perspective. Previously, ACT sourced
almost all cargo from HPHT at a low transaction price; hence
earnings were downward biased. We believe CP is likely to
improve ACT’s EBITDA margin to the level of COSCO-HIT
Terminals, as joint operations allow them to serve mega container
vessels more efficiently.
Potential Qingdao Port IPO could crystallise value. According
to a Bloomberg report on 31 March, Qingdao Port Group plans to
raise c.USD 500mn through an IPO in HK in 2Q14. CP has two
JVs with Qingdao Port Group – Qiangdao Qianwan Container
Terminal (CP owns 20%) and Dongjiakou Iron Ore Terminal (CP
owns 25%). We think a potential IPO will partially crystallise the
value of CP’s stakes in the two JVs and serve as a catalyst.
Leasing yields should improve. We expect leasing yields to
recover to 10% in 2014 from 9.3% in 2013, as container inventory
has been digested after global leasing firms slowed expansion in
2H13. While container liners will continue to receive mega vessels
in 2014-16 and have sharply cut their capex for boxes, they will
source boxes mainly from leasing firms. CP has a more aggressive
container purchase plan in 2014 for satisfying COSCO Container
Lines’ demand and thus revenue should increase with fleet
expansion of 12%, in our estimates.
Valuations. We lower our 2014/15E earnings by 25%/26% due to
slower than expected recovery in global trade. We roll over our
SOTP-based valuation to 2014 and trim our PT to HKD 12.5 from
HKD 13.0.
Claire Teng, CFA
Ai Lin Kuo, CFA
+852 3983 8525
Equity Research
Standard Chartered Bank (HK) Limited
+852 3983 8506
Equity Research
Standard Chartered Bank (HK) Limited
HKD 10.58
HKD 12.50
Bloomberg code
Reuters code
1199 HK
1199.HK
Market cap
12-month range
HKD 28,690mn (USD 3,700mn)
HKD 9.27 - 12.44
EPS adj. est. change
2014E
Year-end: December
Sales (USD mn)
EBITDA (USD mn)
EBIT (USD mn)
Pre-tax profit (USD mn)
Net profit adj. (USD mn)
FCF (USD mn)
EPS adj. (USD)
DPS (USD)
Book value/share (USD)
EPS growth adj. (%)
DPS growth (%)
EBITDA margin (%)
EBIT margin (%)
Net margin adj. (%)
Div. payout (%)
Net gearing (%)
ROE (%)
ROCE (%)
EV/sales (x)
EV/EBITDA (x)
PBR (x)
PER adj. (x)
Dividend yield (%)
-25.2%
2013
799
429
239
751
309
(157)
0.11
0.10
1.61
-10.7
96.3
53.7
29.9
38.7
40.2
16.7
16.5
3.7
9.4
17.5
0.8
13.2
6.9
2015E
2014E
920
476
272
386
353
(899)
0.13
0.05
1.69
14.1
-50.2
51.7
29.6
38.3
40.0
34.9
7.6
4.0
8.1
15.7
0.8
10.9
3.7
2015E
1,017
560
320
443
400
(10)
0.14
0.06
1.77
13.5
13.6
55.1
31.5
39.4
40.0
34.7
8.2
4.5
7.5
13.7
0.8
9.6
4.2
-26.1%
2016E
1,110
620
368
509
460
7
0.16
0.07
1.87
14.8
14.9
55.9
33.1
41.4
40.0
34.2
8.9
5.0
7.1
12.7
0.7
8.3
4.8
Source: Company, Standard Chartered Research estimates
Share price performance
COSCO Pacific
HANG SENG INDEX (rebased)
13.0
11.0
9.0
Apr-13
Jul-13
Share price (%)
Ordinary shares
Relative to index
Relative to sector
Major shareholder
Free float
Average turnover (USD)
Oct-13
Jan-14
Apr-14
-1 mth
-3 mth -12 mth
1
5
3
-4
6
-1
China COSCO (42.7%)
57%
6,326,404
Source: Company, FactSet
Important disclosures can be found in the Disclosures Appendix
All rights reserved. Standard Chartered Bank 2014
1199 HK
HKD 10.5 8
HKD 12.5 0
http://research.standardchartered.com
Equity Research l COSCO Pacific
Valuations
Figure 1: CP – Sum-of-the-parts (SOTP) model
Valuation
method
Base year
Earnings
contributions
Equity
value
PER
Holdings
NAV
contribution
% of NAV
COSCO-HIT
DCF
2014
16.1
ACT
DCF
2014
1.2
359
11.1
50%
180
3.6%
228
174.2
40%
212
4.2%
Yantian Phs I-III
DCF
2014
Guangzhou Nansha Phase II
DCF
2014
58.0
3,667
13.0
21%
754
15.0%
8.9
490
21.6
39%
191
Quanzhou Pacific
DCF
3.8%
2014
8.3
114
9.8
71%
81
Jinjiang Pacific
1.6%
DCF
2014
2.1
25
9.3
80%
20
0.4%
Xieman Haicang
DCF
2014
(11.2)
162
(10.1)
70%
113
2.3%
Kao Ming
DCF
2014
0.3
153
52.3
10%
15
0.3%
SCT
DCF
2014
-
-
na
10%
-
0.0%
Waigaoqiao/ Yanshan
DCF
2014
20.1
600
8.9
30%
180
3.6%
Ningbo Beilun IV
DCF
2014
17.8
1,703
19.1
20%
341
6.8%
Zhangjiagang Wing Hanverky
DCF
2014
3.4
100
15.1
51%
51
1.0%
Yangzhou
DCF
2014
1.7
27
8.7
56%
15
0.3%
Nanjin
DCF
2014
2.2
226
20.2
20%
45
0.9%
Taicang
DCF
2014
1.2
183
57.4
39%
71
1.4%
Qingdao Qianwan
DCF
2014
31.2
3,278
21.0
20%
656
13.0%
DPCM
DCF
2014
1.5
304
39.6
20%
61
1.2%
Tianjin Five Continents
DCF
2014
2.0
216
15.3
14%
30
0.6%
Euroasia
DCF
2014
1.7
98
17.0
30%
29
0.6%
Yingkou Port
DCF
2014
1.2
62
25.2
50%
31
0.6%
COSCO PSA
DCF
2014
1.1
38
16.6
49%
19
0.4%
Antwerp
DCF
2014
(0.9)
84
(19.4)
20%
17
0.3%
Suez Canal
DCF
2014
11.5
833
14.5
20%
167
3.3%
Piraeus Port
DCF
2014
100%
Port
Total Ports
Container leasing
Total
Adjusted net debt (corporate debt)
NAV
PER
2014
26.0
516
19.9
205.6
13,467
18.5
145
1,161
8.0
100%
516
10.3%
3,795
75.4%
1,161
23.1%
4,956
98.4%
79
1.6%
5,035
100.0%
NAV per share in HK$
13.9
Discount for SOTP
12.5
Source: Standard Chartered Research
16 April 2014
2
Equity Research l COSCO Pacific
Figure 2: CP – Forward PE standard deviation
Current valuation is lower than 1SD below the average
CP’s five-year average PER is 12.3x
18
17
16
+2 SD
15
+SD
PER
14
13
Mean
12
11
-1 SD
10
9
8
May-09
-2 SD
Jan-10
Sep-10
Jun-11
Feb-12
Oct-12
Jul-13
Mar-14
Source: FactSet, Standard Chartered Research
Figure 3: CP – Forward PB standard deviation
Current valuation is lower than 1SD below the average
CP’s five-year average PBR is 1.1x
1.9
1.7
+2 SD
PBR
1.5
+SD
1.3
Mean
1.1
-1 SD
0.9
0.7
May-09
-2 SD
Jan-10
Sep-10
Jun-11
Feb-12
Oct-12
Jul-13
Mar-14
Source: FactSet, Standard Chartered Research
16 April 2014
3
Equity Research l COSCO Pacific
Figure 4: CP – Historical dividend yield range
Current yield is slightly below the historical average
CP’s five-year average dividend
yield is 4.5%
10%
9%
8%
7%
+2 STD
6%
+1 STD
5%
Mean
4%
-1 STD
3%
-2 STD
2%
1%
0%
May-09
Nov-09
May-10
Nov-10
May-11
Nov-11
May-12
Nov-12
May-13
Nov-13
Source: FactSet, Standard Chartered Research
16 April 2014
4
Equity Research l COSCO Pacific
Potential Qingdao Port Group IPO could
crystallise value
 According to a Bloomberg report on 31 March 2014, Qingdao Port Group plans to
raise c.USD 500mn through an IPO in Hong Kong in 2Q14.
 CP has two joint ventures with Qingdao Port Group – Qingdao Qianwan Container
Terminal (QQCT, 20% owned by CP) and Dongjiakou Iron Ore Terminal (DJK
Terminal, 25% owned by CP).
 We think Qingdao Port is the best quality port in North China. Qingdao Port is the
largest container port in Northern China and its strong growth is supported by
competitive industries in Shangdong Province. Qingdao is also one of the largest
ore ports in China and should benefit from China’s increasing dependence on
imported ores.
 Given high utilisation and limited space for expansion in the existing port area, the
Qingdao municipal government has chosen Dongjiakou, 80km away from the
existing port area, to expand. A doubling of capacity in Dongjiakou should facilitate
Qiangdao Port’s long-term growth.
 We think a potential IPO of Qingdao Port Group will partially crystallise the value of
CP’s stake in the QQCT and DJK Terminals and serve as a share price catalyst.
Qingdao Port: In a sweet spot
Qingdao Port was the sixth-largest container port, the largest iron ore port and the
largest oil port in China in 2013. Qingdao Port and Guangzhou Port are the only two
unlisted ports among the top ten ports in China.
Figure 6: China’s busiest port by freight throughput (2013)
Qingdao is the sixth busiest port in China
40
35
25
mn tonnes
mn TEU
30
20
15
10
Shanghai
Shenzhen
Hong Kong
Ningbo
Guangzhou
Qingdao
Tianjin
Dalian
Xiamen
Lianyunga…
Yingkou
Yantai
Rizhao
Fuzhou
Quanzhou
Dandong
Zhongshan
Shantou
Haikou
Jiaxing
5
-
Source: Ministry of Transport of China, Census and Statistics Department of HKSAR,
Standard Chartered Research
900
800
700
600
500
400
300
200
100
-
Ningbo
Shanghai
Tianjin
Guangzhou
Tangshan
Qingdao
Dalian
Yingkou
Rizhao
Hong Kong
…
Shenzhen
Yantai
Lianyungang
Zhanjiang
Xiamen
Huanghua
Fuzhou
Dandong
Quanzhou
Figure 5: China’s busiest container ports (2013)
Qingdao is the sixth-largest container port in China
Source: Ministry of Transport of China, Census and Statistics Department of HKSAR,
Standard Chartered Research
Throughput
In 2013, Qingdao Port handled 450mt of cargo (up 10.6 % YoY), including 15.5mn
TEU of containers (up 6.8% YoY) and 110mt of iron ore.
Port areas
The broader Qingdao Port consists of four areas – Qianwan Port Area, Dongkiakou
Port Area (DJK Port Area), Qingdao Old Port Area and Huangdao Oil Port Area.
16 April 2014
5
Equity Research l COSCO Pacific
16 April 2014
1)
Qianwan Port Area is a major operating area and accounts for 80% of the total
throughput of Qingdao Port. There are a total of 29 berths in four phases of
Qianwan Port area. QQCT owns and operates all 21 container berths (including 15
that are operational and 6 to be developed) in Qianwan Port Area directly or via
joint ventures, and handles 100% container throughput of the Qingdao Port. After
the Qingado municipal government approved the Qingdao Dongjiakou Port Area
Development Plan in 2008, Qianwan Port Area is positioned to focus on
international container handling, and its bulk cargos and domestic containers will
be gradually diverted to DKJ Port Area.
2)
DJK Port Area is a newly developed port area with an aim to double Qingdao
Port’s capacity in the long run. It has a total of 112 berths and designed capacity of
370mt. Currently, it has 20 berths in 6 terminals that are operational, with a total
handling capacity of 220mt. Given the port area is relatively new, utilisation was
only 32% in 2013. It is located 80km south-west of Qianwan Port Area and covers
a land area of 150 sqkm.
3)
Qingdao Old Port Area is the closet to the city centre of Qingdao and is being
redeveloped to operate as a cruise terminal. The cruise terminal building is under
construction and will likely start operations in 2015.
4)
Huangdao Oil Port Area is engaged in oil and LNG handling, representing 40% of
the crude oil handled in Qingdao Port. After the deadly oil pipe explosion accident
in November 2013, the Qingdao municipal governmnet decided to relocate crude
oil terminals to DJK Port Area.
6
Equity Research l COSCO Pacific
CP’s presence in Qingdao Port
Qianwan Port Area – QQCT
Container handling in Qianwan Port Area, including 21 berths, are run and owned by
QQCT directly or via its subsidiaries and joint ventures. A four-party joint venture,
including CP (20%), Dubai World (29%), Maersk (20%) and Qingdao Port Group
(31%) own QQCT.
Some of QQCT’s berths are owned and run by joint ventures formed by QQCT or its
subsidiaries and other companies, including China Merchants Holdings (CMH),
Neptune Orient Lines (NOL) and SITC International Holdings.
Figure 7: Shareholding structure of Qingdao Port’s container handling business
If Qingdao Port Group is listed, it could partially crystallise the value of CP’s stake in QQCT
COSCO Pacific
Dubai World
20%
29%
Maersk
Qingdao Port Group
31%
20%
Qingdao Qianwan Container Terminal (QQCT)
Operates 11 berths directly and owns 10 berths via QQCTN; handled 15mn TEU in 2013
80%
China Merchants Holdings
(CMH)
Pan Asia
International
Shipping Ltd
20%
Qingdao New Qianwan Container Terminal (QQCTN)
Owns 10 berths, of which 6 are not developed yet and 4 are operated by JV QQCTU
50%
50%
Qingdao Qianwan United Container Terminal (QQCTU)
Operates 4 berths owned by QQCTN and 5 berths owned by CMH; handled 5mn TEU in 2013
APL-SITC
A JV between
NOL and SITC
Of the 9 berths that are operational, 7 are run directly and 2 are run by JV QQCTUA
70%
30%
Qingdao Qianwan United Advance Container Terminal (QQCTUA)
Operates 2 berths owned by QQCTU, handled 2mn TEU in 2013
Source: Respective companies, Standard Chartered Research
DJK Port Area – DJK Terminal
 DJK Port Area was designed to accommodate all iron ore throughput diverted from
Qianwan Area, in the long term. Currently, there are two iron ore berths that are
operational (one 300k dwt and one 200k dwt). Both are operated by DJK Terminal.
The throughput of the two berths represented c.26% of total iron ore throughput of
Qingdao Port in 2013.
 In May 2013, a joint venture was formed by CP (owns a 25% stake in the JV),
CMH (25%), Qingdao Port Group (30%) and IMC Group (20%) to acquire DJK
Terminal from Qingdao Port Group at a consideration of RMB 1.4bn. The capital
was injected in February 2014 and CP and CMH should start booking joint-venture
profits from 2Q14.
 The designed handling capacity of DJK Terminal is 29mt currently and could be
expanded to 59mt. It was running at close to full utilisation in 2013.
16 April 2014
7
Equity Research l COSCO Pacific
Figure 8: Shareholding structure of Dongjiakou Iron Ore Terminal
If Qingdao Port Group is listed, it could partially crystallise the value of CP’s stake in DJK Terminal
COSCO Pacific
25%
China Merchants Holdings
25%
Qingdao Port Group
IMC Group
30%
20%
Dongjiakou Iron Ore Terminal
Source: Respective companies, Standard Chartered Research
DJK Port Area – other projects
 A total of six terminals in DJK Port Area are operational. Besides DJK Terminal,
other terminals that are operational include Huaneng Multi-purpose Terminal
Project and Expansion Projects (51% invested by Huaneng Power International
and 49% by Qingdao Port Group).
 Terminal projects under construction in DJK Port Area include Shandong LNG
Terminal Phase I and Datang Multi-purpose Terminal.
 Many petrochemical companies have signed joint ventures with Qingdao Port
Group to develop terminals in DJK Port Area, including Sinopec and Vopak.
16 April 2014
8
Equity Research l COSCO Pacific
Income statement (USD mn)
Year-end: Dec
Sales
Gross profit
SG&A
Other income
Other expenses
EBIT
Net interest
Associates
Other non-operational
Exceptional items
Pre-tax profit
Taxation
Minority interests
Exceptional items after tax
Net profit
Cash flow statement (USD mn)
2012
736
315
(92)
2
0
225
(68)
223
0
2
382
(28)
(12)
0
342
2013
799
318
(90)
11
0
239
(66)
177
7
394
751
(33)
(15)
0
703
2014E
920
371
(101)
2
0
272
(59)
166
6
0
386
(27)
(7)
0
352
2015E
1,017
429
(112)
3
0
320
(69)
187
5
0
443
(35)
(8)
0
399
2016E
1,110
487
(122)
3
0
368
(69)
206
5
0
509
(41)
(10)
0
459
333
393
309
429
353
476
400
560
460
620
0.13
0.12
0.05
2,712
0.25
0.11
0.10
2,816
0.12
0.13
0.05
2,816
0.14
0.14
0.06
2,816
0.16
0.16
0.07
2,816
Year-end: Dec
Cash
Short-term investments
Accounts receivable
Inventory
Other current assets
Total current assets
2012
849
0
222
13
9
1,092
2013
1,238
0
224
19
0
1,481
2014E
281
0
259
22
0
562
2015E
205
0
286
24
0
515
2016E
132
0
312
26
0
469
PP&E
Intangible assets
Associates and JVs
Other long-term assets
Total long-term assets
3,718
10
2,206
338
6,271
4,168
10
1,498
395
6,070
5,289
10
1,581
395
7,274
5,528
10
1,674
395
7,607
5,789
10
1,777
395
7,971
Total assets
7,364
7,551
7,836
8,122
8,440
Short-term debt
Accounts payable
Other current liabilities
Total current liabilities
775
358
7
1,141
276
465
90
830
276
531
90
896
276
569
90
935
276
603
90
968
Long-term debt
Convertible bonds
Deferred tax
Other long-term liabilities
Total long-term liabilities
1,827
0
0
179
2,006
1,770
0
0
107
1,878
1,770
0
0
107
1,878
1,770
0
0
107
1,878
1,770
0
0
107
1,878
Total liabilities
3,146
2,708
2,774
2,812
2,846
Shareholders’ funds
Minority interests
3,954
263
4,546
297
4,757
305
4,997
313
5,272
323
Total equity
4,217
4,843
5,062
5,310
5,595
Total liabilities and equity
7,364
7,551
7,836
8,122
8,440
Net debt (cash)
Year-end shares (mn)
1,752
2,712
809
2,816
1,765
2,816
1,841
2,816
1,914
2,816
Net profit adj.
EBITDA
EPS (USD)
EPS adj. (USD)
DPS (USD)
Avg fully diluted shares (mn)
Balance sheet (USD mn)
Year-end: Dec
EBIT
Depreciation & amortisation
Net interest
Tax paid
Changes in working capital
Others
Cash flow from operations
2012
225
168
(83)
(18)
192
(153)
331
2013
239
190
(86)
(21)
98
(46)
374
2014E
272
203
(59)
(27)
29
6
425
2015E
320
240
(69)
(35)
9
5
470
2016E
368
252
(69)
(41)
6
5
520
Capex
Acquisitions & Investments
Disposals
Others
Cash flow from investing
(710)
(21)
6
218
(507)
(532)
1,169
51
71
759
(1,324)
0
0
83
(1,241)
(480)
0
0
93
(387)
(513)
0
0
103
(410)
Dividends
Issue of shares
Change in debt
Other financing cash flow
Cash flow from financing
(45)
0
486
0
442
(113)
2
(621)
(5)
(737)
(141)
0
0
0
(141)
(160)
0
0
0
(160)
(184)
0
0
0
(184)
266
(379)
397
(157)
(957)
(899)
(76)
(10)
(73)
7
Change in cash
Exchange rate effect
Free cash flow
Financial ratios and other
Year-end: Dec
Operating ratios
Gross margin (%)
EBITDA margin (%)
EBIT margin (%)
Net margin adj. (%)
Effective tax rate (%)
Sales growth (%)
Net income growth (%)
EPS growth (%)
EPS growth adj. (%)
DPS growth (%)
2012
2013
2014E
2015E
2016E
42.9
53.4
30.6
45.3
7.3
22.8
-12.0
-12.0
-6.3
-10.9
39.8
53.7
29.9
38.7
4.5
8.6
105.3
97.7
-10.7
96.3
40.4
51.7
29.6
38.3
7.0
15.2
-49.9
-49.9
14.1
-50.2
42.2
55.1
31.5
39.4
8.0
10.5
13.6
13.6
13.5
13.6
43.9
55.9
33.1
41.4
8.0
9.1
14.9
14.9
14.8
14.9
Efficiency ratios
ROE (%)
ROCE (%)
Asset turnover (x)
Op. cash/EBIT (x)
Depreciation/capex (x)
Inventory days
Accounts receivable days
Accounts payable days
9.0
3.8
0.1
1.5
0.2
9.6
119.5
243.1
16.5
3.7
0.1
1.6
0.4
12.1
102.0
312.6
7.6
4.0
0.1
1.6
0.2
13.7
95.8
331.0
8.2
4.5
0.1
1.5
0.5
14.2
97.7
341.2
8.9
5.0
0.1
1.4
0.5
14.4
98.3
343.3
Leverage ratios
Net gearing (%)
Debt/capital (%)
Interest cover (x)
Debt/EBITDA (x)
Current ratio (x)
41.6
41.8
2.9
6.1
1.0
16.7
30.4
2.8
5.4
1.8
34.9
29.5
3.8
4.3
0.6
34.7
28.5
4.5
3.7
0.6
34.2
27.4
5.1
3.3
0.5
Valuation
EV/sales (x)
EV/EBITDA (x)
EV/EBIT (x)
PER (x)
PER adj. (x)
PBR (x)
Dividend yield (%)
10.7
20.0
34.9
11.0
11.3
1.0
3.7
9.4
17.5
31.4
5.8
13.2
0.8
6.9
8.1
15.7
27.5
10.9
10.9
0.8
3.7
7.5
13.7
23.9
9.6
9.6
0.8
4.2
7.1
12.7
21.3
8.3
8.3
0.7
4.8
Source: Company, Standard Chartered Research estimates
16 April 2014
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Equity Research l COSCO Pacific
Disclosures appendix
The information and opinions in this report were prepared by Standard Chartered Bank (Hong Kong) Limited, Standard Chartered Bank Singapore Branch, Standard
Chartered Securities (India) Limited, Standard Chartered Securities Korea Limited and/or one or more of its affiliates (together with its group of companies, ”SCB”)
and the research analyst(s) named in this report. THIS RESEARCH HAS NOT BEEN PRODUCED IN THE UNITED STATES.
Analyst Certification Disclosure: The research analyst or analysts responsible for the content of this research report certify that: (1) the views expressed and
attributed to the research analyst or analysts in the research report accurately reflect their personal opinion(s) about the subject securities and issuers and/or other
subject matter as appropriate; and (2) no part of his or her compensation was, is or will be directly or indirectly related to the specific recommendations or views
contained in this research report. On a general basis, the efficacy of recommendations is a factor in the performance appraisals of analysts.
Where “disclosure date” appears below, this means the day prior to the report date. All share prices quoted are the closing price for the business day prior to the
date of the report, unless otherwise stated.
Recommendation and price target history for COSCO Pacific
HKD
16.74
14.97
2
3
13.21
1
11.44
9.68
7.91
May-11
Date
Aug-11
Nov-11
Recommendation
Feb-12
May-12
Price target
Aug-12
Date
Nov-12
Feb-13
Recommendation
1 25 Aug 11 IN-LINE
11.00 2 8 Jan 13
Source: FactSet prices, SCB recommendations and price targets
May-13
Price target
OUTPERFORM
14.00
Aug-13
Date
Nov-13
Feb-14
Recommendation
May-14
Price target
3 26 Mar 13 OUTPERFORM
13.00
Recommendation and price target history for Hutchison Port Holdings Trust
USD
0.96
0.88
3
0.80
4
2
5
0.73
6
1
0.65
0.58
May-11
Date
1 4 Oct 11
Aug-11
Nov-11
Recommendation
OUTPERFORM
Feb-12
May-12
Price target
0.69
Aug-12
Date
3 25 Oct 12
2 18 Jan 12 OUTPERFORM
0.78 4 8 Jan 13
Source: FactSet prices, SCB recommendations and price targets
Nov-12
Recommendation
Feb-13
May-13
Price target
Aug-13
Date
Nov-13
Recommendation
OUTPERFORM
0.81
5 10 Jun 13
IN-LINE
0.81
6 19 Nov 13 OUTPERFORM
IN-LINE
Feb-14
May-14
Price target
0.75
0.75
Recommendation Distribution and Investment Banking Relationships
% of covered companies
currently assigned this rating
% of companies assigned this rating with which SCB has provided
investment banking services over the past 12 months
OUTPERFORM
54.4%
12.7%
IN-LINE
35.4%
11.5%
UNDERPERFORM
As of 31 March 2014
10.2%
7.7%
Research Recommendation
Terminology
OUTPERFORM (OP)
IN-LINE (IL)
UNDERPERFORM (UP)
Definitions
The total return on the security is expected to outperform the relevant market index by 5% or more over the next 12 months
The total return on the security is not expected to outperform or underperform the relevant market index by 5% or more over the next
12 months
The total return on the security is expected to underperform the relevant market index by 5% or more over the next 12 months
SCB uses an investment horizon of 12 months for its price targets.
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constitute any offer, recommendation or solicitation to any person to enter into any transaction or adopt any hedging, trading or investment strategy, nor does it
16 April 2014
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Equity Research l COSCO Pacific
constitute any prediction of likely future movements in rates or prices or represent that any such future movements will not exceed those shown in any illustration.
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16 April 2014
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Equity Research l COSCO Pacific
16 April 2014
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