[ET Net News Agency, 27 November 2019] Goldman Sachs lowered its target price for
Cheung Kong Infrastructure (CKI)(01038) to HK$61.3 from HK$68 and downgraded its rating to
"neutral" from "buy".
The research house estimated CKI's group cashflow would amount to HK$7.1bn or HK$2.8 per
share in FY2019 (versus HK$2.43/share DPS). Goldman does not foresee much risk of cashflow
shortfall in the next 1-2 years since the regulatory reset will only kick-in in 2021, but
the risk will rise as more resets are to come through.
By 2022, if GBP devalues to say on parity to USD, Goldman's sensitivity analysis
suggests that CKI may run into a cashflow shortfall to maintain an HK$2.63 DPS (+2% CAGR
from FY2019) if the upcoming reset were to reduce the cashflow for each regulated project
by 20% or more. (KL)
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01038 CKI HOLDINGS
Nominal 
45.050 +0.400 (+0.896%) Others
27/11/2019 16:55
{I-bank focus}Goldman cuts CKI Holdings (01038) to HK$61.3
| Remark: | Real time quote last updated: 26/04/2024 14:11 |
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