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2026-09-24 16:33:10 Hong Kong-listed conglomerates are still regarded by equity investors as quality yield shelters, backed by resilient asset portfolios and rising dividends, CLSA said in a research report. Investor interest remains focused on family-controlled businesses, while attention is on the next round of catalysts and their timetable. The broker made no changes to ratings or forecasts. CKH HOLDINGS (00001.HK) and CTF SERVICES (00659.HK) remain the broker's top picks. The broker noted that investors broadly agree Hong Kong-listed conglomerates are good yield safe havens and are not heavily owned by investors. Amid elevated uncertainty, investors favor the resilient asset portfolios of the conglomerates under the broker's coverage. Based on currently published forecasts, aggregate recurring profit and cash dividends of Hong Kong-listed conglomerates are expected to grow YoY by 6% and 9% respectively in 2026, reaching USD8 billion and USD4.2 billion, with CKH HOLDINGS and SWIRE PACIFIC A (00019.HK) serving as the two major drivers. The conglomerates most discussed with investors are CKH HOLDINGS, Jardine Matheson and FIRST PACIFIC (00142.HK). Under elevated oil prices, Cenovus Energy will support CKH HOLDINGS's earnings growth, while property and non-property businesses will underpin SWIRE PACIFIC A's forecast recurring profit growth for 2026 and 2027. Regarding Jardine Matheson and FIRST PACIFIC, despite muted investor enthusiasm toward Indonesia, investors agree both companies possess quality assets and attractive valuations. For CKH HOLDINGS, investors expressed little opposition to the broker's investment thesis, but are focused on the timetable for several potential transactions, including the port disposal first announced in March 2025. In the absence of catalysts, the broker preferred stocks with steadily rising dividends. For MTR CORPORATION (00066.HK), the broker continued to spot risks of dividend cuts or equity financing due to elevated future capex guidance of HKD84.8 billion for 2026-2028. The broker maintained earnings forecasts, ratings and target prices unchanged. Apart from MTR CORPORATION, which was rated Hold, all others carry positive ratings. CKH HOLDINGS was rated High Conviction Outperform with a TP of HKD110. CTF SERVICES was rated Outperform with a TP of HKD11.5. SWIRE PACIFIC A and FIRST PACIFIC are both rated Outperform with TPs of HKD114 and HKD6.8 respectively. MTR CORPORATION had a TP of HKD33. ~ AASTOCKS Financial News Website: www.aastocks.com | |