• Yantian port recorded a 96.9% y-o-y growth to 1.072m TEUs in throughput volumes in Feb due to low base in 2020 and as many factories remained open through the Spring Festival period
• Kwai Tsing port saw a decline of 3.5% y-o-y to 0.914m TEUs in throughput volumes in Feb
• Volumes declined slightly from Jan to Feb but YTD growth still positive at 48.7% y-o-y for Yantian port and 4.4% y-o-y for Kwai Tsing port

China&rsquo s Purchasing Managers&rsquo Index (PMI): New Export Orders  eased to 48.8 in Feb after five consecutive months of a reading above 50. It slipped back into contraction after months boosted by overseas demand, coupled with the Lunar New Year break where workers return to their home towns. We believe it will turn expansionary ahead, driven by a rebound in production and demand for exports. 

We still expect throughput volumes to remain firm in the first half of 2021 and a potential synchronised global economic recovery in 2H21 that will support global trade activity.  This should pave the way for HPH Trust to record a strong operating performance for 1H21 with a decent level of profitability for the full year of 2021 as well. 

We maintain our BUY call and TP of US$0.32.