Lyon: Hong Kong conglomerate is expected to achieve a 4% dividend yield this year and continues to recommend FIRST PACIFIC (00142) as a top stock.

Lyon released a research report stating that the comprehensive enterprises covered in Hong Kong are expected to achieve an 8% growth in recurring profits this year, leading to a 4% increase in overall common stock dividends, reaching about $4.1 billion, which could drive the revaluation of the value of various enterprises. It also mentioned that industry stock prices are currently discounted by 40% of net asset value per share, believing that this year will see positive catalysts for stock prices. Lyon continues to list FIRST PACIFIC (00142) as a preferred stock, giving it an "outperform the market" rating, with a target price raised slightly from 6.3 Hong Kong dollars to 6.4 Hong Kong dollars. The bank stated that FIRST PACIFIC must spin off its Philippine affiliate Maynilad and list it on the stock market by January 2027 to comply with regulatory requirements. There is currently a 50% chance that this will be completed this year. In addition, the company may also spin off its toll road business, which is believed to offer attractive risk-return levels. Furthermore, the bank also sees CKH HOLDINGS (00001) as having an attractive risk-return level, and anticipates that CKH HOLDINGS may spin off its telecommunications business in Europe, so investors should have some patience with CKH HOLDINGS. Lyon also rates CKH HOLDINGS as "outperform the market" with a target price of 61 Hong Kong dollars. Based on current prices, Lyon believes that SWIRE PACIFIC A (00019) is not offering an attractive risk-return level, as the company is not expected to use recurring expenses for repurchases, giving it a "hold" rating with a target price of 70 Hong Kong dollars.