[ET Net News Agency, 24 April 2020] Morgan Stanley cut its target price for CK
Hutchison Holdings (00001) to HK$68 from HK$85 and retained its "overweight" rating.
The research house revised its estimates down for 2020/21, mostly marking to market
based on latest stock prices of the listed subsidiaries/associates and weaker than
expected earnings in all of the businesses due to COVID-19. Lower EBIT is partly
compensated by lower finance costs due to refinancing at the Telco business.
Morgan said the stock is trading at a valuation, which is cheaper than its peers in Hong
Kong, as well as relative to its history. Excluding all the listed entities, the stub is
trading at HK$15 per share.
Morgan said negative earnings revision could drive negative dividend surprise. Assuming
that the company maintains its payout ratio (around 35%) instead of keeping DPS flat, that
would imply a DPS decline of 15% in 2020, which would be the first dividend decline for
the company since 1996. (KL)
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00001 CKH HOLDINGS
Nominal 
42.850 0.000 (0.000%) Research Report
24/04/2020 17:23
{I-bank focus}Morgan trims CKH Holdings (00001) to HK$68
| Remark: | Real time quote last updated: 19/09/2024 08:45 |
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