Morgan Stanley: Li & Fung (01113) reported a 4% drop in basic earnings per share last year, with a 2% increase in dividends per share. The target price is HK$47.

Morgan Stanley released a research report stating that it is expected that Cheung Kong Holdings (01113) will see a 4% year-on-year decrease in basic earnings per share to 3.77 Hong Kong dollars for the 2025 fiscal year, while the market expectation is 3.78 Hong Kong dollars. The full-year dividend per share is expected to increase by 2% year-on-year to 1.77 Hong Kong dollars, with the market expectation being 1.79 Hong Kong dollars. However, considering the relatively lower profit margin from the BLUE COAST project in Wong Chuk Hang, the profit margin of property development may further decrease to 14%. The bank looks forward to hearing the management's outlook on the Hong Kong property market and the latest developments in the sale of UK railway assets. The bank gives Cheung Kong Holdings a "hold" rating with a target price of 47 Hong Kong dollars.