UBS: Gives CKH HOLDINGS (00001) a "neutral" rating with a target price of HKD 43.

UBS released a research report stating that CKH HOLDINGS (00001) has been given a "neutral" rating with a target price of HK$43. The report predicts that CKH HOLDINGS' earnings for the 2024 fiscal year may decrease by 7% year-on-year to HK$21.97 billion, which is 5% lower than market expectations. At the same time, dividends may decrease by 7% year-on-year to HK$1.68 per share. These forecasts are mainly based on factors such as the decline in oil prices in the second half of last year, the weakening of the Euro against the Hong Kong dollar in the fourth quarter, and rising financing costs in the second half of the year. However, strong profits from the port business have partially offset these negative factors. UBS expects that CKH HOLDINGS' retail, infrastructure, and telecommunications businesses will remain relatively stable, with a profit trend similar to the first half of last year. For the fiscal years 2025 to 2026, the bank has lowered its profit forecast by 12% to 15%, with earnings per share growth rates expected to be 3% and 4% respectively. The bank believes that in this scenario, the risk-return ratio is fair.