[ET Net News Agency, 22 February 2018] Citi Research lowered its target price for CK
Infrastructure Holdings (CKI)(01038) to HK$74 from HK$77, and reiterated its "buy" rating.
The research house said CKI remains its preferred HK utility play on expectations of
earnings accretion from potential M&As in 2018, leading to higher earnings contribution in
the following years.
Citi prefers growth to yield plays amid a rising interest rate environment. It thinks
CKI could have two EPS accretive acquisitions in 2018 which could potentially add up to
HK$1bn to its 2019 net profit.
Citi reduced its 2017-19 net profits by 8-9% owing to: (1) lower GBP/HK$ exchange rate
of average 10.04 in 2017; (2) no expected oneoff gains in 2017-19; (3) no deferred tax
gains from UK corporate tax rate cut in 2017-19; and (4) less profit contribution from its
39% stake held in PAH (00006) for similar reasons. (KL)
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01038 CKI HOLDINGS
Nominal 
44.800 +0.150 (+0.336%) Others
22/02/2018 10:36
[I-bank focus]Citi lowers CKI Holdings (01038) to HK$74
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