UBS Affirms 'Buy' Rating for CK ASSET with HK$62 Price Target

Stock News07-10

UBS has issued a research report maintaining its 'Buy' rating on CK ASSET (SEHK: 01113) with a target price of HK$62.

The bank forecasts that the company's cash earnings, excluding disposal gains, for the first half of 2026 will remain broadly stable.

It anticipates a slight increase in the EBIT contribution from property development.

While rental income from Hong Kong is expected to see a modest decline, this is projected to be offset by growth in rental income from overseas social housing.

Additionally, rising room rates are expected to support profit contributions from the hotel business.

In contrast, the EBIT contributions from the infrastructure segment and the UK pub operator Greene King are forecast to decline, influenced by recent disposals and rising costs.

To account for the substantial disposal gain from UKPN (approximately HK$8.4 billion), the report projects that CK ASSET will announce a special dividend per share in the range of HK$0.39 to HK$0.82 for the first half of 2026.

This implies a payout ratio between 16% and 34%.

Considering the bank's forecast for an organic dividend per share of HK$1.78 for the 2026 fiscal year, which is essentially flat, the total dividend yield is anticipated to reach 5% to 6%.

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