Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>G Sachs: CKH Shows Stable Growth Across Businesses; Asset Sales Help Reduce Debt
Recommend 2 Positive 10 Negative 4 |
||||
|
||||
|
CKH HOLDINGS (00001.HK) met expectations for its 2025 results, Goldman Sachs said in its report. Excluding a one-time loss of HKD10.5 billion from the merger of 3UK and Vodafone UK, the company's underlying net profit was HKD22.3 billion, representing a 7% YoY growth, aligning with both the broker's and market's expectations. The broker stated that CKH's net debt-to-equity ratio improved further to 13.9% by the end of 2025, up from 16.2% at the end of 2024, representing its most strongest level since 2001. If also factoring in the cash proceeds and disposal gain of UK Rails and the proposed sale of UKPN by CKI, the ratio was estimated to further decrease to 7%. Due to Mideast conflicts and geopolitical risks, CKH's management maintained a cautious outlook on business prospects during an analyst meeting. However, they expected the port business to mitigate uncertainties through a diversified global port portfolio, anticipating a deceleration in global trade growth amid macro uncertainties. For the entire group, Goldman Sachs predicted CKH's core earnings for FY26 to grow by 16% YoY to HKD25.9 billion, driven by Telco Europe on gradual realization of synergy benefits from the merger in the UK and Cenovus on higher oil prices. Sensitivity analysis by Goldman Sachs estimated that for every USD1 increase in oil prices, CKH's earnings would increase by approximately HKD300 million or 1-2%. No rating was given to CKH. AASTOCKS Financial News Website: www.aastocks.com |
||||
Copied to Clipboard
 |
||||
