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<Research>Citi Expects CKI HOLDINGS (01038.HK) to Engage in M&A or Declare Special Div. in Next 12-18 Mths, Elevates TP to $73.5
Recommend 5 Positive 13 Negative 4 |
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CKI HOLDINGS (01038.HK) announced its annual results for the year ended December 2025 yesterday, Citi Research issued a research report saying. The broker reaffirmed rating at Buy for the stock. The reasons include the Group's low business risk, with most income derived from regulated return assets; the significant gain of $45 billion or $17.9 per share from the sale of a 40% stake in UK Power Networks, indicating substantial hidden value in the Group's assets; and the potential for earnings growth from M&As. Citi Research applied a SOTP valuation method, and elevated its target price for CKI HOLDINGS by 18% to $73.5 from $62.5, factoring in the projected disposals by the Group in 1H26. If no major M&A takes place in the next 12 to 18 months, the broker believed that the Company may distribute the proceeds from the sale as a special dividend, similar to the approach taken by its associate company POWER ASSETS (00006.HK) in 2016-2017 after the spin-off of HKELECTRIC-SS (02638.HK) in 2014. AASTOCKS Financial News Website: www.aastocks.com |
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