[ET Net News Agency, 7 August 2020] Goldman Sachs cut its target price for CK Asset
Holdings (01113) to HK$60 from HK$61.5 and maintained its "buy" rating.
The research house sees the interim DPS cut as a surprise, but management also guided
that they have ample liquidity to upkeep a flat DPS. Goldman thinks this cut is a
relatively conservative decision to preserve cash resources for upcoming M&A opportunities
and macro uncertainties.
Goldman thinks CKA has a strong financial position to weather near-term challenges as HK
real estate continues to see deeper reset prices and rents this year. Factoring in
operating updates post results, Goldman lowered its FY2020-22 EPS forecasts by 10%/4%/3%.
(KL)