Morgan Stanley: CKH HOLDINGS (00001) received a positive rating on capital restructuring and is recommended to hold.

Morgan Stanley released a research report stating that CKH HOLDINGS (00001) has an attractive valuation, with a forecasted P/E ratio of 10 times and a dividend yield of 3.6%. If potential transactions in ports, retail, and telecommunications can be implemented quickly, it will further enhance its investment value. Morgan Stanley has given CKH HOLDINGS a rating of "accumulate" with a target price of 61 Hong Kong dollars. There are reports indicating that CKH HOLDINGS is in discussions with Jardine Matheson, planning to sell its Hong Kong supermarket business "ParknShop." The bank believes that this move reflects CKH HOLDINGS' ongoing capital restructuring, which is positive for the company. If Jardine Matheson's DFI Retail Group's "Wellcome" (with 320 stores) merges with CKH HOLDINGS' "ParknShop" (with 240 stores), together they will account for 80% of the market share in the Hong Kong supermarket market. The report mentions that for CKH HOLDINGS, the Hong Kong market is classified under the "other" category in the retail business. This segment recorded revenue of 22.5 billion Hong Kong dollars and an EBIT of 167 million Hong Kong dollars in 2025, showing improvement compared to the loss of 86 million Hong Kong dollars in 2024. Looking back to 2013, before CKH HOLDINGS sold its stake in Watsons to Temasek, the company had planned to list or sell ParknShop, with a potential valuation reported at 3 to 4 billion US dollars.