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| HSI1 | 23,350.03 | +295.00 | 304.95B |
| HSCEI1 | 7,699.76 | +87.28 | 86.75B |
| Back Zoom + Zoom - Block Traded | |
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2026-07-03 11:53:38 Following the disposal of UK Power Networks and UK Rails, the balance sheets of CKI HOLDINGS (01038.HK) and POWER ASSETS (00006.HK) have been immensely fortified, creating opportunities for meaningful acquisitions to drive growth and/or distribute special dividends, HSBC Global Investment Research issued a report saying. The broker estimated that the net cash positions of CKI HOLDINGS and POWER ASSETS would be equivalent to 24% and 42% of their respective equity values. Inflation-linked adjustments would accelerate medium-term earnings growth for regulated assets, particularly in the UK and Australia, where regulatory asset values and allowed revenues increase with inflation. The broker upgraded POWER ASSETS from Hold to Buy and raised its TP from HKD56 to HKD70, reflecting a favorable macro environment for regulated utility assets and value-enhancing corporate actions with upside potential. The broker maintained a Buy rating on CKI HOLDINGS and raised its TP from HKD75 to HKD80. The broker updated its preference ranking for utilities, with CKI HOLDINGS remaining the top pick due to its solid operating cash flow even without M&As. POWER ASSETS ranked second because updates to its asset portfolio and macro assumptions, together with ample cash on hand, increase opportunities for monetization. CLP HOLDINGS (00002.HK) followed next, with its Buy rating maintained and TP raised from HKD85 to HKD86. The broker downgraded HKELECTRIC-SS (02638.HK) from Buy to Hold and lowered its TP from HKD7.8 to HKD6.9, citing a relatively unattractive dividend yield compared with peers and limited upside potential. HK & CHINA GAS (00003.HK) was maintained a Hold rating with TP unchanged at HKD6.8, as pressure on FCF limits room for dividend upside despite continued improvement in fundamentals. ~ AASTOCKS Financial News Website: www.aastocks.com | |