Morgan Stanley has issued a research report stating that CKH HOLDINGS (00001) offers attractive valuation metrics, with a forecasted price-to-earnings ratio of 10 times and a dividend yield of 3.6%. The investment value is expected to strengthen further if potential transactions involving its ports, retail, and telecommunications assets are finalized promptly. The firm has assigned an Overweight rating to CKH HOLDINGS with a target price of HK$61. Reports indicate that CKH is in discussions with Jardine Matheson regarding the potential sale of its Hong Kong supermarket chain, PARKnSHOP. This move is viewed as a continuation of the company's capital recycling strategy, which is considered positive. A merger between Jardine's Wellcome supermarket chain, which operates 320 stores, and CKH's PARKnSHOP, with 240 stores, would collectively command an 80% share of the Hong Kong supermarket market. The report notes that for CKH HOLDINGS, the Hong Kong market is categorized under the "Other" segment within its retail business. This segment recorded revenue of HK$22.5 billion and an EBIT of HK$167 million in 2025, showing improvement compared to a loss of HK$86 million in 2024. Looking back to 2013, prior to CKH's sale of a stake in A.S. Watson to Temasek, the company had considered an IPO or sale of PARKnSHOP, with reported potential valuations ranging between $3 billion and $4 billion at the time.
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