Analyst says "worst is over" for Hutchison Port Holdings Trust

DBS encouraged by recovering HK operations.

"In addition to improving HK operations and a mild uptick in throughput volumes, the recent signing of a US$3.6bn term loan facility to refinance its loans at an attractive rate will also provide further room for earnings to improve next year," predicts DBS.

The research firm projects HPHT's DPU to improve from 5.3UScts to 5.9UScts in FY14.

HPHT's DPU was dragged down by an industrial action that transpired in the first half and a lackluster 3Q performance.

But "with the industrial action now well behind it and a full year’s contribution from ACT, we expect HIT to post a significant improvement in 2014, which should lead to an overall earnings improvement for HPHT," said DBS, as it also forecasts overall throughput numbers to mildly improve next year.