Bleak outlook for Hutchison Port Holdings Trust’s Hong Kong ports remains

Throughput growth for two ports still in the downtrend.

Hong Kong Kwai Tsing Container Terminals throughput fell 1.5% YoY to 1.3m TEU in Aug. This was an improvement over Jul’s 4.5% YoY decline and May’s 4.9% decline.

OCBC Investment Research notes that the smaller YoY decline in Aug is in part due to a comparison with lower base as the decline in throughput at Kwai Tsing started in 2H15 (-2.1% YoY in 3Q15, and - 6.3% YoY in 4Q15).

Year-to-date (YTD), throughput at Kwai Tsing has fallen 7.7% YoY.

"That said, our throughput growth forecast for Hutchison Port Holdings Trust’s (HPHT) Hong Kong ports remains at -8% for FY16 and -4% for FY17," said OCBC Investment Research.

Shenzhen container throughput, meanwhile, was down 1.3% YoY in Aug, compared to 0.4% up in Jul and -4.3% in Jun. YTD throughput growth was flat at 0.0% YoY.

OCBC Investment Researchthroughput growth forecast for YICT is 0% for FY16 and 2% for FY17.