HHLA is a logistic and transportation company. It discharges/loads the ships coming on the Hamburg port and then delivers them to the destination using trains (67% freight volume) and trucks (37% freight volume). The company was partially privatized in November 2007, but the state still owns 68% of the shares.
HHLA competes with other ports in the region. In Hamburg though it has no competition and hence an increase in the importance of Hamburg will increase the revenue of the company. Following are a few key figures from the 2012 annual report.
Shares: 72.7 m (70m class A shares and 2.7 class S shares)
Dividend: €0.65 (- 26.375% withholding tax)
Revenue: €1.12 bn
Profit: €111.8 mn
The company trades for €17 a share and the 52-week range is €16.77 to €26.8.
The company has a dividend policy of paying at least 50% of its profits in dividend. The company cut its dividend in 2009 from €1 to €0.4, which gradually increased to €0.65 in 2011 and has stayed the same in 2012. The payout ratio has remained a bit above 50%.
The company has €384 million in pension liabilities, €314 million in long-term debts and €138 million in short-term debt. It also has €230 million in cash. This adds up to a net debt of €606 million. Interestingly, the book value has remained €560 million since 2007 (not a good sign).
The interest cover has been above 4. In 2012 the company had EBIT of €186 million and interest expense of €39 million. The company has never been in loss in the last six years and in the best year (2008) it had profit of €217 million and dividend of €1.
The debt has remained high for the company since it went public. The capex in 2012 was €153 million and FCF was €57 million. In 2011 they were €132 million and €134 million, respectively. The company had positive FCF since 2007, generating €700 million in the last six years, for an average of €116.6 million a year.
At the current price of €17 the company has a market cap of €1.26 billion and an EV of €1.86 billion. Although I like the company, it is not cheap yet.