Drewry Maritime Equity Research - HHLA (HHFA) Hamburger Hafen und Logistik Aktiengesellschaft

Report

Ankush Kathuria

Hamburger Hafen und Logistik Aktiengesellschaft

We rate HHLA as ‘Attractive’ with a target price of EUR 18.6 (equivalent to an upside of 18%). The company is largely an undervalued dividend story. HHLA is a leading regional port player in Germany with the majority of shareholding owned by City of Hamburg. Despite this most recent payout being on the lower side of the range, the current dividend yield of 4.2% is substantially above the German 10-year bonds, which are yielding in negative territory. Also, the company is trading in an undervalued territory with EV/EBITDA of 5.5x (vs industry average of 8.9x).

09/09/2020 1 EN

Underlying

HHLA

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Provider

Drewry Maritime Equity Research

Drewry, since 1970, has been providing research and advisory services on the global Maritime and Shipping industries and has established itself as a firm with long history of credibility and expertise on various aspects of the maritime industry. Leveraging this in-depth market knowledge and understanding, we have extended our offering to deliver a unique, independent investment research service on globally listed companies operating in the maritime industry. Under the brand Drewry Maritime Equity Research and in accordance with the FCA, DMER led by Rahul Kapoor and his team, offers fundamental analysis on listed companies. DMER analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. By combining these market-leading resources with seasoned sector expertise and commercial awareness, we are able to offer a highly differentiated and comprehensive investment research service to prospective investors in listed maritime companies. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

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Analysts

Ankush Kathuria

Other Reports on these Companies

Drewry Maritime Equity Research

2021 Result Update

HHLA recently published its preliminary 2021 financial highlights. After a temporary blip in 2020 led by the Covid-linked slowdown of global trade, the company’s revenue and operating profit (EBIT) bounced back in 2021, and even surpassed HHLA’s revised 2021 outlook issued on 20 October 2021. The recent fall in the broader equity market due to Russia and Ukraine conflict has increased the upside to 23% (based on our fair value estimate of EUR 22.2) and has automatically changed the rating to Attractive. We plan to revisit our fair value estimate when the company announces its full-year result...

February 25, 2022 February 25, 2022 1 EN

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HHLA upgrades its 2021 outlook

On 20 October 2021, HHLA upgraded both of its 2021 revenue and EBIT outlook to EUR 1.5bn or USD 1.7bn (+12% YoY vs -6% in 2020) and EUR 205mn or USD 239mn (vs its previous outlook range of EUR 153-178mn or USD 178-207mn) respectively. The revision was mainly led by the robust increase in storage revenue, which in turn benefited from the ongoing port congestion at HHLA’s terminals in Hamburg. HHLA’s stock trade in undervalued zone with EV/EBITDA of 7.7x (vs Drewry port equity index: 9.3x). We have increased our fair value estimate to EUR 22.2 and rating to Neutral.

October 22, 2021 October 22, 2021 6 EN

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The container ports and terminals sector is witnessing increased adoption of innovative technologies such as automation and digitalisation. Higher automation reduces labour costs, which in turn lowers operating leverage and can make operating profit more resilient. However, this may lead to strained relations with the trade union. Currently, terminal operators are opting for varying degrees of automation, depending on their financial and technical resources. We are optimistic about the current automation drive and believe that even though little automation adds to financial and operational res...

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After massively underperforming the Drewry Port Equity Index in 2021, Westport’s stock price moved in tandem with the broader equity index in 2022. The stock slumped 11.2%, in line with the 12.2% decline recorded by the Drewry’s sectorial index. At the current EV/EBITDA valuation, the company trades at a premium of 18.0% when compared with Drewry Port Equity Index, but is at a 16.1% discount from its five-year historical average. Our fair value estimate of MYR 4.08 provides an upside of 8.9% compared to the current stock price.

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January 3, 2023 January 3, 2023 1 EN

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Hamburger Hafen und Logistik Aktiengesellschaft

2021 Result Update

HHLA upgrades its 2021 outlook

Could disruptive technologies in container ports and terminals be a game changer?

Westports_Result Update 3Q22

Star Bulk Carriers - Changing our view to Neutral as market gets challenging in 2023

Nordic American Tankers to benefit from improved supply-demand fundamentals of mid-sized tankers

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