[ET Net News Agency, 19 March 2021] Credit Suisse lifted its target price for CK Asset
Holdings (CKA) (01113) to HK$61.6 from HK$51.9 and maintained its "outperform" rating.
CKA proposed to buy 10-20% stakes in four utility companies from Li Ka Shing Foundation
(LKSF) for HK$17bn, settled via issuance of new shares to LKSF at HK$51 per share. CKA
also proposed share buyback with the maximum scale to fully cover the new issuance.
The research house said the acquisition is consistent with the company's strategy of
expanding recurrent income and the profit contribution is set to increase amid the
post-COVID-19 recovery.
Credit Suisse trimmed its NAV by 3% and cut its FY2021/22 EPS forecasts by 7%/3%. (KL)