The US will now charge a 30% rate on imports from China, down from 145%, while China will levy just 10%, instead of 125%.
HPHT owns a network of container ports including Yantian in Shenzhen.
DBS, citing container liners, says that outbound container volumes to the US declined by around 30% in April after US President Donald Trump announced the universal "reciprocal" tariffs.
"With the rate now reduced to a more manageable 30% - a level considered more tolerable by both shippers and end-consumers - we expect China-US cargo volumes to rebound from mid-May onward," says DBS.
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In a more optimistic scenario, accelerated front-loading during the 90-day tariff reduction window could even lead to a modest y-o-y increase in throughput for the quarter.
"Additionally, the easing of trade tensions coincides with the lead-up to the summer peak shipping season of between July and August, potentially providing further support to volume recovery," adds DBS.
According to DBS, US-related cargo accounts for 40–50% of Yantian’s total throughput.
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Citing its own analysis, a 1% y-o-y increase in Yantian's throughput in FY2025 could boost HPHT's earnings by HK$18 million.
Pending further agreements between the US and China, DBS is keeping its "buy" call and 18 US cents target price, noting the "attractive" FY2025 dividend yield of 10%.
HPHT units gained 4.05% as at 11.28 am to change hands at 15.4 US cents.
