[ET Net News Agency, 7 September 2018] UBS Global Research lowered its target price for
CK Hutchison Holdings (CKH)(00001) to HK$111 from HK$127 to account for the current
more bearish sentiment in equity markets, and maintained its "buy" rating.
The research house said CKH has been a big underperformer in the last two years due to
the lack of underlying earnings growth and macro tail risks (e.g. Brexit). While macro
risks remain, a broad-based fundamental recovery and recent M&A activities should drive
earnings growth at double-digit rates in 2H 2018 and 2019.
In addition, more corporate actions could drive earnings and NAV upside. Recent share
buybacks at HK$90-91/share, a 4% dividend yield and a 37% discount to NAV (versus the
long-term average of 30%) should cushion downside risks, UBS said. (KL)