[ET Net News Agency, 18 September 2018] Daiwa Research noted that CK Asset (CKA)(01113)
resumed its share buyback in September, while major shareholder KS Li has also been
raising his stake in CKA.
The research house believes that CKA's business strategy offers defensive appeal and
that it has the financial resources to keep raising its DPS in 2018-20 and beyond.
Daiwa said that CKA has been monetising the low-cost land it acquired in Hong Kong and
China and deploying the funds into infrastructure and other assets which generate
recurrent income, while awaiting landbanking opportunities.
At the same time, it has also been looking into opportunities to redevelop its
undervalued assets (such as Hutchison House) and realise the NAVs of non-core assets at
low-cap rates (such as the sale of The Center, Century Link in Shanghai), which is a
low-risk strategy.
Daiwa reiterated its "buy" rating and a target price of HK$85.2 on CKA. (KL)