[ET Net News Agency, 10 August 2020] Daiwa Research lowered its target price for CK
Infrastructure Holdings (01038) to HK$48 from HK$56.2 and maintained its "buy" rating.
The research house hosted an investor call for CKI after it posted its 1H results with a
16% recurring EPS drop on 5 August. Management said CKI would have HK$7.5bn of OCF
(operating cash flow) as of end-2020 to honor a slight growth in its final DPS.
Management noted that the UK regulatory reset environment remains challenging based on
the draft determination for gas networks. Daiwa thinks that a potential listing of its
European assets on the London Stock Exchange (LSE) could be a share-price catalyst.
Daiwa cut its 2020-22 EPS forecasts by 7-13% due to the COVID-19 cost impact and
less-than-expected UK earnings on the coming regulatory resets for gas networks. (KL)