UBS: Raises target price of CKH HOLDINGS (00001) by 19% to 101 Hong Kong dollars, maintains "buy" rating.

UBS issued a research report, stating that it has raised the target price of CKH HOLDINGS (00001) by 19%, from HK$84.6 to HK$101, maintaining a "buy" rating. UBS indicated that the value of CKH HOLDINGS' port infrastructure and telecommunications assets has increased by 25% since 2023. Recent asset disposals have validated CKH HOLDINGS' robust portfolio management capabilities, thanks to its flexible holding period and strong balance sheet. UBS believes that there will be more investment opportunities in the future. If CKH HOLDINGS does not conduct further asset sales, the bank predicts that the company's free cash flow will grow at a rate of 22% per year in 2026-2027, supporting higher dividends (18%-26% higher than market expectations). This also means that the company is able to pay regular dividends (UBS predicts a payout ratio of 40%) and generate a free cash flow yield of 13%/16% in the 2026/2027 fiscal year.