HSBC: Lower CK Asset's target price to HK$41.7, maintains "buy" rating.

DBS released a research report stating that CK ASSET (01113) acquired a series of elderly care home projects in Germany last year after previously acquiring infrastructure projects in the UK and Northern Ireland. These projects will strengthen Cheung Kong's recurring profit base and diversify its assets. With the group's debt to asset ratio at 4.3%, it is well positioned to make more value-added acquisitions in Hong Kong and overseas. The target price for Cheung Kong has been lowered from HK$43.15 to HK$41.7, but the "buy" rating is maintained as the valuation remains attractive. The bank believes that as Cheung Kong's recurring profit base strengthens and diversifies, the improvement in profit quality is expected to drive stock valuation higher. Additionally, if the group's Victoria Blossom residential project in The Cullinan receives positive feedback, it is likely to enhance the sentiment surrounding its stock price.