UBS: CKH Holdings (00001) is expected to exceed its 2025 performance expectations and is expected to benefit from high oil prices. The "buy" rating is maintained.

UBS released a research report stating that CKH HOLDINGS (00001) is expected to have a basic net profit of HKD 22.3 billion in 2025, a 7% year-on-year increase, which is 4% higher than the bank's expectations. This is mainly driven by better-than-expected performance in most business segments. The company announced a full-year dividend of HKD 2.31 per share, a 5% increase year-on-year, which is also higher than the bank's forecast of 3%. Despite the ongoing tensions in the Middle East, management emphasized that the company's port business in the affected region accounts for only 0.5% of total throughput, and the company can benefit from rising oil prices through its ownership of Cenovus Energy. UBS estimates that if oil prices remain at current levels, CKH HOLDINGS' profit could increase by 40%. UBS maintains a "Buy" rating on CKH HOLDINGS with a target price of HKD 67, believing that its business has resilience to withstand uncertainty.