HK Stock Market Move | CKH HOLDINGS (00001) fell more than 5%. The monetization of UK assets drove a surge in mid-term net profit. In the second half of the year, a cautious strategy will continue to be adopted.

CKH HOLDINGS (00001) fell over 5%, dropping 5.6% to HK$68.25, with a transaction volume of HK$512 million. In terms of news, CKH HOLDINGS announced its performance for the first half of this year, reporting a substantial profit attributable to shareholders of HK$26.8 billion, a year-on-year increase of 30.46 times, aided by the impact of the merger in the UK telecommunications business and one-time gains from the sale of UK assets. Excluding these items, the underlying profit was HK$12.581 billion, up 7% year-on-year. The company declared an interim dividend of HK$0.7455, an increase of 5% compared to last year. Chairman Li Zeju stated in the performance report that he expects the operating environment for the groups various businesses to remain challenging for the remainder of 2026. In the second half, the group will continue to adopt a prudent strategy. Bank of America Securities pointed out that, although the increase in the interim dividend per share lagged behind the increase in earnings per share for the first half, management expects the increase in dividend per share for the fiscal year 2026 to be roughly in line with the increase in earnings per share, consistent with recent trends. The bank does not anticipate that a special dividend will be declared regarding the UKPN sale, as the proceeds from the sale remain with listed subsidiary Cheung Kong Infrastructure and have not yet been returned upward. The bank also believes that investor expectations for a special dividend are not particularly high.