But higher interest rates may drag expected earnings.
DBS Group Research reported its forecast for Hutchison Port Holdings Trust (HPH Trust)’s profit attributable to unitholders, increasing by 10.38% from $159.62m in 2017 to $175.97m this year.
Singapore Business Review also previously reported that its profit for the year fell 24.9% YoY to $347.87m last year, from $499.37 in 2016.
Further, its revenue is expected to increase from $1.95b in 2017 to $2.02b this year.
“HPHT’s share price could re-rate if throughput volumes can more than offset a decline in average tariff rates in the quarters ahead,” DBS Research said.
However, higher finance costs and interest rates may drag core pre-tax earnings.
“In a rising interest rate environment, we project higher interest costs for HPHT ahead, which would drag core pre-tax earnings growth in FY18F and FY19F. We project HPHT’s finance costs to rise by 10% in FY18 and FY19F as we factor in higher interest rates, and despite a reduction in debt,” DBS Research said.
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