[ET Net News Agency, 2 June 2020] J.P. Morgan cut its target price for CK
Infrastructure Holdings (CKI)(01038) to HK$48.5 from HK$60 but upgraded its rating to
"overweight" from "neutral".
The research house said CKI underperformed Hang Seng Index by 12% year-to-date, partly
due to weaker GBP and AUD vs HKD, which would drag its earnings from the UK and Australia.
However, JPM noted the shares have already more than factored in the weak currencies as
the actual earnings impact should be less than 5%.
JPM believes CKI has a very comfortable free cash flow of HK$7-8bn to meet its annual
dividend payment of HK$6bn. Therefore, it can maintain or increase its DPS, providing for
an attractive yield of 6.2% (versus peers' average of 4.7%).
It sees the next positive catalyst from CKI's interim results announcement in August
when the company is expected to report stable earnings from its overseas utility projects.
(KL)
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01038 CKI HOLDINGS
Nominal 
44.650 +0.300 (+0.676%) Research Report
02/06/2020 17:22
{I-bank focus}JP Morgan cuts CKI Holdings (01038) to HK$48.5
| Remark: | Real time quote last updated: 25/04/2024 13:15 |
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