[ET Net News Agency, 25 January 2018] Daiwa Research lifted its target price for Cheung
Kong Infrastructure Holdings (CKI)(01038) to HK$86 from HK$85, and maintained its "buy"
rating.
The research house believes that CKI will continue to partner with CK Asset (CKA)(01113)
to co-invest in global infrastructure assets until it merges with Power Assets Holdings
(PAH)(00006) to form a bigger entity, which is likely in 2019-20.
Daiwa prefers CKI to other Hong Kong power companies amid the rising-interest-rate
environment, given earnings from CKI's overseas regulated assets are inflation-hedged. As
such, it believes CKI will be able to keep its absolute ROIC constant, leading to a more
defensive yield gap. (KL)