[ET Net News Agency, 3 December 2020] CLSA lifted its target price for CK Hutchison
Holdings (00001) to HK$69 from HK$64 and reiterated its "buy" rating.
The research house said digging deeper into the telecom tower divestment reveals it is
likely to lower 2022 overall operating profit forecasts by 6-15%, more than offset by a
16% increase in the NAV as value is unlocked.
Moreover, net-debt-to-equity will decline from 36% to 23%, giving CKH's optionality to
deploy capital. CLSA is less convinced on buybacks, though the company could repurchase up
to 5.1% of shares. It believes that M&A is more likely. (KL)