CKH Holdings (former Cheung Kong Hutchison) 0001

[winston]

not vested

BROKER CALL - Cheung Kong target price raised to 140.81 hkd - Citigroup

HONG KONG (XFN-ASIA) - Citigroup raised its target price on Cheung Kong (Holdings) Ltd to 140.81 hkd from 134.19, factoring in higher valuations for unit Hutchison Whampoa Ltd.
It kept its "buy" rating on the Hong Kong developer, also citing undervaluation.

Citigroup noted that Cheung Kong is now trading at 26 pct to its net asset value (NAV), much wider than that of competitors such as Sun Hung Kai Properties Ltd and Sino Land Co Ltd.

In a research note sent to investors yesterday, the US house raised its NAV estimate for Hutchison by 8.50 hkd to 99.63 hkd from its previous estimate to reflect its latest China property acquisitions and the sharp increase in the value of its holdings in Husky Energy.

Citigroup also raised its 2008 and 2009 earnings per share estimate for Cheung Kong by 20.2 pct and 4.2 pct, respectively, to 7.305 and 11.63 hkd.

"Cheung Kong is our preferred Hong Kong developer as it has been astute in adopting different strategies for its different property projects," Citigroup said.

Shares of Cheung Kong traded up 4.2 hkd or 3.38 pct to close the morning session at 128.5.

Source: XFN

[winston]

WEN WEI PO

-- Cheung Kong (Holdings) (0001.HK: Quote, Profile, Research) chairman Li Ka-shing made the largest personal buyback on Cheung Kong shares this year on May 30. He added HK$274 million worth of shares to his holding, which is now at 40.16 percent.

[winston]

MING PAO DAILY NEWS

-- Cheung Kong (Holdings) (0001.HK: Quote, Profile, Research, Stock Buzz) chairman Li Ka-shing added shares equal to 0.01 percent of the equity capital in the company to his personal holding last Thursday.

The HK$28.71 million purchase pushed his holding up to 40.21 percent.

[winston]

Late-August Monarch launch
AlfredLiu
Thursday, July 31, 2008

Cheung Kong (0001) said it plans to pre-sell units at its residential project, Seasons Monarch, after the Olympics end in late August.

Senior sales manager Kenneth Yuen said the developer has received the necessary consent for the Yuen Long project and intends to sell at an average price of HK$8,000 per square foot. He said the project will be launched in two phases, with 132 units made available in the first phase. The units range in size from 2,700 to 5,000 square feet.

Yuen said Cheung Kong will proceed with the launch despite the property market's low season because the company traditionally starts marketing right after receiving approval from the Lands Department. He is confident that prices will remain stable even though transaction volume is low.

"The price set by Cheung Kong is reasonable compared to other projects in the district, in terms of quality," said Midland Realty assistant associate director d**k Lam. The Vineyard, developed in Yuen Long by Sun Hung Kai Properties (0016), is selling at between HK$6,500 and HK$8,500 psf, Lam said.

Seasons Monarch comprises 244 units. Cheung Kong will start advertising the first phase next week.

[winston]

Not vested.

It bugs the hell out of me when I see Analysts predicting Target Prices to two decimals, especially for a triple digit stock

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Cheung Kong profit tipped to dive 67pc
AlfredLiu

Cheung Kong (Holdings) (0001) is expected to report on Thursday a plunge of 67.6 percent in interim net profit, due to the lack of significant exceptional gain from associate Hutchison Whampoa (0013) and limited booking of property sales in the period.

Credit Suisse forecasts Cheung Kong's first-half net profit will drop to HK$6 billion from HK$18.5 billion the previous year.

Meanwhile, the interim net profit of Hutchison - 49.97 percent held by Cheung Kong - is projected at HK$9.1 billion.

"[Cheung Kong's] expected drop is mainly due to the lack of major exceptional items from Hutch and the limited property development booking in [the first half of 2008], including sale of some inventory of The Legend [in Tai Hang] and the completion of CASA 880 [in Quarry Bay]," Credit Suisse analysts Cusson Leung and Ronney Cheung wrote in a report.

They added that profit from The Capitol, the Tseung Kwan O project sold out in March, is expected to be booked in the second half. The analysts also noted the developer's booking of mainland property sales is tipped to be much lower than last year.

Deutsche Bank has cut the target price of Cheung Kong stock by 22 percent to HK$119.50 from HK$153.20, downgrading its rating from "buy" to "hold." Cheung Kong shares - which have fallen 24 percent this year - closed last Friday at HK$108.20, down 0.7 percent.

[winston]

Not vested.

Cheung Kong H1 net down 35 pct, but beats forecasts

HONG KONG, Aug 21 (Reuters) - Cheung Kong (Holdings) (0001.HK: Quote, Profile, Research, Stock Buzz), billionaire Li Ka-shing's real estate flagship, reported a 35 percent fall in first-half earnings on Thursday, dented by a lower contribution from sister firm Hutchison Whampoa (0013.HK: Quote, Profile, Research, Stock Buzz) and limited property development profits.

Hong Kong's second-biggest property firm by market value posted a January-June net profit of HK$12.02 billion ($1.5 billion), beating expectations and down from HK$18.5 billion a year earlier.

The average profit forecast was for HK$6.1 billion, according to four analysts polled by Reuters.

Hong Kong home sales slowed in the second quarter after a booming 2007 and analysts expected property prices could fall about 10 percent in the second half due to weak market sentiment amid a slowing global economy and possible interest rate hikes.

A sharp fall in earnings at Hutchison Whampoa, of which it owns nearly half, also hurt Cheung Kong's bottom line. [ID:nHKF079415]

Concerns over a weaker outlook for the local property market pushed shares in Cheung Kong down 27 percent in January-June, underperforming a 20.5 percent loss on the Hang Seng Index .HSI.

But analysts say Cheung Kong's vast land bank should benefit from a looming shortage of land supply in Hong Kong and more property completions expected in the second half should help the firm generate full-year profit of HK$13.65 billion, based on forecasts by 9 analysts polled by Reuters Estimates.

[winston]

Cheung Kong $12b profit is double expectations
Alfred Liu

Cheung Kong (Holdings) (0001) reported a 35 percent drop in interim net profit to HK$12.02 billion, and associate Hutchison Whampoa (0013) booked lower one-time gains.

But the profit was double market expectations. Estimates were for net income of around HK$6 billion for the real estate flagship for six months to June 30.

Core profit, excluding property valuation and profit share from Hutchison, jumped 93 percent from a year earlier to HK$5.55 billion. Profit before Hutchison's contribution was up 60 percent to HK$6.68 billion.

Earnings per share were HK$5.19. An interim dividend of 50 HK cents per share was declared.

Net profit contribution from property sales surged 192 percent to HK$5.25 billion, due to the sale recognition of residential projects including The Legend and CASA 880.

Chairman Li Ka-shing said Cheung Kong's Hong Kong property transactions in the first half - which reaped HK$23 billion - "have already covered the total of what we planned to sell for the whole year."

Completions of The Capitol and Seasons Monarch projects are expected to contribute to second-half earnings.

The developer expects the local property market to be stable in the second half despite falling transaction volumes. "Because of the inflation factor, negative interest rate is getting more and more serious, which is positive to the property market," said deputy chairman and managing director Victor Li Tzar-kuoi.

Li Ka-shing said the mainland provides strong housing demand even though the market is affected by austerity measures. "The property market will remain strong given the growing GDP," he said.

[winston]

RESEARCH ALERT-Goldman cuts Cheung Kong target price 30 pct

HONG KONG, Oct 17 (Reuters) - Goldman Sachs cut its target price on Cheung Kong by 30 percent to HK$81.8 amid a deteriorating outlook for Hong Kong's economy and job market that could put pressure on property and rental prices.

Goldman forecasts Hong Kong will post a 2.4 percent drop in GDP growth year-on-year in the first quarter of 2009 from 4.2 percent growth in the second quarter of 2008.

"In China, weak demand sentiment and price cuts by large developers could result in delays and lower selling prices for CKH's projects," Goldman said in a research note, but said it maintained a neutral rating on the property group.

Goldman has revised down 2008 to 2010 earnings estimates for Cheung Kong by 7 percent to 45 percent, assuming a 25 percent decline in property prices in Hong Kong and a 20 percent drop in China next year.

Shares of Cheung Kong ended at HK$75 on Thursday.

[winston]

BROKER CALL - HK's Cheung Kong downgraded; earnings forecasts cut - Macquarie

HONG KONG (XFN-ASIA) - Macquarie Group downgraded Cheung Kong (Holdings) to "neutral" from "outperform", citing slim 2 pct upside potential from the stock's current price, The Australian house said its call is also underpinned by the view that near-term positives in the market have already been priced in into the share price and that the group will receive lower earnings contribution from unit Hutchison Whampoa.

Macquarie said it cut its valuation for Cheung Kong by 8 pct to 104.3 hkd per share to reflect the lower share price of Hutchison and lower valuation of its hotels in Hong Kong in the face of higher vacancy rates among hotels following a decline in long-haul visitor arrivals. It said Hutchison remains a key overhang as the ports-to-telecom conglomerate offers limited potential for asset sales or restructuring.

Hutchison lacks upside catalysts, given the global economic slump, it noted. "The lackluster price performance of Hutchison may remain a drag on Cheung Kong's price performance," Macquarie said. It lowered its earnings forecasts for Cheung Kong by 5 pct for 2008, by 2 pct for 2009 and 12 pct for 2010. Cheung Kong shares were down 4.70 hkd or 6.35 pct at 69.25 while those of Hutchison Whampoa were down 2.75 hkd or 6.88 pct at 37.25

[winston]

20090115 Macquarie Cheung Kong
Time to take a breather

Event
We revisit Cheung Kong’s investment profile in the wake of its outperformance of 17% vs HSI over the past three months. We downgrade Cheung Kong from Outperform to Neutral because we believe that the near-term positives are already priced-in.

Impact
Well-positioned in HK developers’ space: Cheung Kong’s biggest market share in the HK residential segment should yield good pricing power. Also, its relatively high concentration in the mass residential segment is likely to draw better demand support and less pricing pressure considering that end-users dominate current market demand.

Catch-up in secured profit of its HK peers: Although Cheung Kong did not initiate a new launch during the 4Q08, its peers have achieved good catch-up in property sales over the past few months. Cheung Kong is gradually losing its prestige position as its peers step up the level of lock-in of development sales.

Hutchison remains as the key overhang. Our conglomerates analyst, Gary Pinge, remains cautious on the earnings and valuation outlook of Hutchison (13 HK, HK$40.65, N, TP: HK$39.41). With Hutchison’s limited potential for asset sales or restructuring, its lack of upside catalysts and with the poor economic backdrop, he expects the current NAV discount to persist. The lacklustre price performance of Hutchison may remain a drag on Cheung Kong’s price performance.

Earnings revision
We lowered our earnings forecasts by 5% for FY08, by 2% for FY09 and by 12% for FY10 to reflect the change in assumptions for prices, the selling pace of selective projects and lower earnings forecast for Hutchison.

Price catalyst
12-month price target: HK$75.60 based on a Sum-of-the-parts methodology.

Catalyst: Stronger-than-expected response to its launches in HK scheduled for the next few months.

Action and recommendation
We downgrade Cheung Kong from Outperform to Neutral and lower our valuation estimate to HK$104.3/sh (-8%) to reflect the lower share price of Hutchison and lower hotel values due to expected increased vacancies. Our revised target of HK$75.6/sh (-16%) is based on a 25–30% discount of its property segment and a 20% holding company discount on Hutchison’s target of HK$39.41 (-20%).

We think the company’s current NAV discount of 29% (close to its historical NAV average over the past bear markets) has fully priced-in the positives from the recent recovery of volumes. Given the expected volatility over the next few months, we think it is too early to position for a sustainable market recovery at this level.