- EV/EBITDA of HPH is at 9.5x and
- PE ratio is at 25x
Is it a value stock, at EV/EBITDA of 9.5X ?
The answer is NO, as Fair Value is defined EV/EBITDA = PEx.
Analysts Research update,
0747 GMT [Dow Jones] STOCK CALL: HSBC upgrades Hutchison Port Holdings Trust (NS8U.SG) to Neutral from Underweight, noting its 12-month forward target price of US$0.81 implies a potential return of 3% (with 2% dividend yield, which includes only the interim dividend to be paid out in 2011). The target also implies 13X EV/EBITDA and 7.8% yield on 2012 estimates; "while the stock has underperformed the broader market by over 25% since listing, we believe that the stock is still not attractive at the current level." It says while a 7.8% yield may look attractive, especially in such a volatile environment, "we argue that growth beyond 2012E is not sustainable due to increase in tax rate, interest rate, higher stake of minority and capex." The house notes HPHT is the leader in China's slowest growing port region, the Pearl River Delta, which has been suffering from rising labor and other operational costs, "and we believe this poses near-term growth challenges." The stock is up 0.6% at US$0.820. (matthew.allen@dowjones.com
No comments:
Post a Comment