[ET Net News Agency, 3 August 2018] HSBC Global Research lifted its target price for CK
Hutchison Holdings (CKH)(00001) to HK$112 from HK$111, and maintained its "buy" rating.
The research house said CKH's 1H profit of HK$18bn (+13% YoY) was in line with HSBC's
expectation and met 47% of its 2018 forecast. Interim DPS was +11.5% YoY, the first
double-digit growth in recent history.
HSBC said CKH's share price has fallen 16% so far in 2018, partly due to concerns over
regulatory risks from its UK utilities business and recent retirement of the former
Chairman, but HSBC believes such risks are largely reflected in its share price.
The research house looks for signs of catalysts, including ROE enhancement from the
recent digitalization across various global businesses, particularly in retail and
telecom, realization of the announced M&A, etc. (KL)