Yamato: Reiterated CKI HOLDINGS (01038) target price of HK$63, rating upgraded to "buy"

The research report released by Daiwa stated that it reiterated a target price of HK$63 for CKI HOLDINGS (01038) and upgraded its rating from "outperform" to "buy". The report mentioned that the group is the only Hong Kong utility company forecasted to achieve year-on-year growth in dividend per share for 2024-26. Additionally, with the possibility of the Federal Reserve slowing down its rate cuts, and mainland operations being relatively low compared to Hong Kong utilities stocks. The bank pointed out that the UK's water regulator, Ofwat, unexpectedly released its final decision on the 2024 price review (PR24) yesterday. Considering that the market sees Thames Water as a potential acquisition target for the group, the bank believes that the PR24 decision increases the potential.