[ET Net News Agency, 27 August 2018] Jefferies Research lowered its target price for CK
Hutchison Holdings (CKH)(00001) to HK$102 from HK$123 to reflect unfavorable FX rates and
more bearish sentiment, and maintained its "buy" rating.
With the focus of the last analyst briefing on its retail strategy, the research house
said its continuing thesis that CKH hopes to eventually spin off the retail division
remains. However, with the recent negative sentiments and continued low peer group
valuations, Jefferies does not expect the spin-off soon.
With the recent strengthening of the USD (and hence HK$) against many of the major
functional currencies of CKH's operations, Jefferies expects a weaker 2H in HK$ terms. It
revised its earnings by -9.9%, -6.2% and -4.1% for FY2018-20 mainly on the back of more
unfavorable FX expected going forward. (KL)