[ET Net News Agency, 5 November 2019] CLSA lowered its target price for CK Asset
(CKA)(01113) to HK$56.8 from HK$78 and downgraded its rating to "outperform" from "buy".
The research house said CKA's income is less exposed to Hong Kong's property market due
to its geographic and sector diversification. The proposed acquisition of Greene King
would further diversify and enhance its recurring profit while unbooked presales of
HK$54bn will help sustain its 10% DPS growth.
Given its large non-HK asset exposure, CLSA believes a lower yield spread of 2% (versus
US 10-year Treasury yield 3MA of 1.8%) is justified. (KL)