HPH Trust : 一只让人又爱又恨的蓝筹股



<Image  credit to seatrade-maritime.com>


HPH Trust has been one of the worst performer blue chips within the STI Index component. It has created hype during IPO in 2011 where investors being attracted with high dividend yield and promising growth story of China’s export and full potential of containerization.

But the reality was that, with the increasing and fierce competition from surrounding port along Pearl River Delta, couple with prolong slump in the shipping industry in its secular down cycles, the result is reflected in the current stock price of -60% down since the IPO.


The business also badly affected by the shipping line’s action to deploy ships direct to other new ports ( from Xiamen to Ningbo ) which reduce the transhipment volume tremendously.


By hindsight , this is a classic case of “value trap “ if one just based on “dividend yield “ as an indicator to buy.

image credit to Investing Note.com




My Trade on HPH Trust


As you may see from my portfolio that I like : D ( Dividend ) very much and most of the stocks in my portfolio are having decent dividend yield. Hence, I myself have fallen into such a “value trap “ by investing in HPH since 2012.  I have done few trades on this counter and still end up with lost of -$7,409.99 in invested capital before taking into consideration of dividend received.

Below is my trade detail of HPH :






With XIRR of 3.7% (including dividend ), I think this is like just matching long term bond rate and can’t even beat the CPF SA rate and I am sure many investors who have same experience as me that end up with a meagre return or even worse still with loss till date.

I am happy with my divestment that still generates a positive return at the end of the day and will take advantage of some short term trading if the price drop drastically which may see value emerge due to oversold.

FYI, both DBS and OCBC are having similar price target of USD0.42 with “ Hold “ rating. ( you may find the detailed analysis  here )

Do you have this so-called “ blue chip “ in your portfolio ? and what is your YTD return or even target price to cut loss or take profit?


Cheers !!


Quote Of The Day:



“There is no such thing as a “Value Trap”. There are investing mistakes. “ by Mohnish Pabrai

Comments

  1. 3.7% still pretty good at a dismay situation ! Better than the Bank or lose money in UT.
    Worst still to SCAM. :)

    ReplyDelete
  2. Hi Cory..yah ! That's true. ..better than those you mentioned..also..in stocks investing..sometimes we win ..sometimes loss. ." bo bao jia" one..hahaha :)
    Cheers!!

    ReplyDelete
  3. Just curious. Would u consider buying HPH trust today?

    ReplyDelete
  4. Hi ThinkNotLeft,
    I will still prefer not to invest in HPH even at current price , although I might be wrong as value may emerge with such low price.
    I would prefer companies with more diversify ports portfolio like China Merchant Port or Cosco Shipping Port , which have more terminal across different region.
    HPH only have terminal in South China (Pear River Delta) , and these port are facing very stiff competition from other operators ..event shipping line itself (like Maersk Line ) is also having their own terminal in Nansha area.

    With such competition and rising cost , I think they will have pressure to maintain their margin...also with struggling shipping lines or carrier continue , is hard for them to get better tariff from them.
    Above just my own observation and thinking ...i might be wrong.
    Cheers !

    ReplyDelete

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