Guess which was the largest contributor.
According to Barclays Research, after the Hong Kong market close on Tuesday 15 Jan 2013, COSCO Pacific announced Dec 2012 container volume growth of +7.5% y/y.
December 2012 underlying container volumes +7.5% y/y: COSCO Pacific's Dec 2012 underlying container volumes were +7.5% y/y, after adjusting for acquisitions and disposals. FY2012 volumes were +9.8% y/y, closely matching expectation for +10% annual throughput growth.
Here's more from Barclays:
Volumes at Qingdao port, which was the largest contributor to total throughput with a 25.2% share, saw FY2012 volumes increase +13.1% y/y. COSCO Pacific's FY2012 throughput of +9.8% y/y is comparable to China Merchants' +4.4% y/y.
Positive read-through for HPH Trust (HPHT SP, EW): Dec 2012 volumes through the port of Yantian were 0.9mn teus, +3.0 % y/y while FY2012 volumes were +3.9%. Yantian is the primary asset of HPH Trust.
Our price target of HK$15.30 is derived from 1.3x FY13E P/B. COSCO Pacific is our top pick in the ports space, and we expect a continuing turnaround from underperforming port assets to drive the company's EPS growth. On a P/E basis, COSCO Pacific is trading at 9.9x 2013E P/E, compared with China Merchants' 14.1x and HPH Trust's 16.5x, after adjusting for normalized depreciation for the trust.
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