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2024-04-25 10:55:57 CKI HOLDINGS (01038.HK), CK ASSET (01113.HK) and POWER ASSETS (00006.HK) jointly announced that a joint consortium reached an agreement to acquire all the interests in Phoenix Energy Group, a gas distribution network in Northern Ireland. JP Morgan said in a research note that the enterprise value (EV) to regulatory asset value (RAV) valuation ratio is about 1x based on the consideration payable of more than $3 billion. As this is the first large-scale acquisition made by CK Group in Europe in more than five years, it is expected to defy the market concern over the impact of geopolitical tensions on the business. Although Phoenix Energy, which has more than 250,000 customers, incurred a loss last year, the broker believed it will be able to return to profit in the medium to long term, thanks to the CK Group's strong execution and financial management. In a nutshell, due to the relatively small size of the deal, JP Morgan forecast minimal impact on the share price, and hence maintained a Neutral rating on CKA. It expected CKA's share price to fluctuate within the range in the near term, while the ongoing share buybacks may bolster the share price, with a target price of $32. CKI and PAH were rated Overweight and Neutral by JP Morgan, with a target price of $50 each. ~ AAStocks Financial News Web Site: www.aastocks.com | |