CK Asset (former Cheung Kong Property) 1113

[winston]

China/Hong Kong: CK Asset Holdings (1113 HK): Multiple catalysts in place [BUY, TP HK$ 64.30]

The Li family casts a vote of confidence over the company’s growth prospects

Asset divestment to boost war chest for new round of acquisition-led growth

Strong development earnings visibility and growing recurrent profit

BUY with HK$64.3 TP

Source: DBS

[winston]

not vested

Double-digit returns as CKA exits jet leasing

CK Asset (1113) expects nearly double-digit returns from the sale of its aircraft leasing business.

The Hong Kong property developer said yesterday it has completed selling the business for HK$33.2 billion.

CK Asset said the total return on the business is expected to reach nearly double-digits over the seven years since its entered the business.

The sale involves more than 140 aircraft, including aircraft in the order books.

The firm has agreed to sell its aircraft business as it exits the sector while enhancing its strategic focus during the pandemic, according to a regulator filling last December.

"Covid-19 has caused a paradigm shift in the aircraft leasing sector," it said.

"The risk and return dynamics have become volatile and unpredictable, and the industry has undergone increased consolidation, mergers and acquisitions activities to mitigate such volatility," it added.

Source: The Standard

https://www.thestandard.com.hk/section- ... et-leasing

[winston]

not vested

Li Ka-shing’s family feels pinch of depreciating pound as flagship CK Asset bears brunt of sell-off in Hong Kong

CK Asset Holdings, the biggest of Hong Kong tycoon Li Ka-shing’s listed firms, slumped 8.6 per cent in Hong Kong

The pound weakened to an all-time low of 1.0327 against the dollar on Monday amid fears over the UK’s economic outlook

by Zhang Shidong

CK Asset, which relies on the UK for 26 per cent of its revenue, , tumbled 8.6 per cent to HK$48.20 on Monday.

Investors’ concerns about the impact of a depreciating pound on CK Asset were overblown, as only 18 per cent of the company’s operating profit comes from the UK and the proportion of its gross asset value is 14 per cent, according to CIMB-CGS Securities.

We expect CK Asset to do more shares buy-back, which should limit its downside risk.”
CIMB-CGS maintained its “add” rating on the stock and has a price target of HK$66.40, which implies a 38 per cent gain from the latest close.

Source: SCMP

https://www.scmp.com/business/china-bus ... d-flagship

[winston]

CK Asset Holdings Limited
Disposing unsold portion of 21 Borrett Road

CKA will dispose of the unsold portion of 21 Borrett Road at HK$20.8bn and finance the buyer with a purchaser’s loan.

Even at a lower ASP than that for sold units, we estimate the disposal translates to a healthy OP margin comparable to ordinary property sales.

With GBP exposure partially hedged, we think the earnings impact on CKA is
limited. Reiterate Add with an unchanged TP of HK$66.4.

CKA had net cash of HK$14bn at end-Jun 22, thanks to disposal of its aircraft leasing business.

Despite short-term share price headwinds due to its higher GAV exposure to UK (14%
based on our estimate) than other HK developers, we understand that its GBP exposure is partially hedged with currency swaps, and estimate that the underlying profit impact on CKA due to GBP is ~6% even if GBP depreciates 30% against HK$ without hedging.

Our TP for CKA is still based on a 40% discount to NAV of HK$110.6.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... CE3C303A8E

[winston]

not vested

2022 Results

CK Asset (1113) said its 2022 net profit grew 2.1 percent to HK$21.7 billion and proposed a final dividend of HK$1.85 - a 3.4 percent increase from 2021.

Earnings per share rose 3.6 percent to HK$5.98.

Revenue from property sales recognized during the period dropped 32 percent to HK$25.76 billion.

Among them, property sales in Hong Kong dipped 8 percent to HK$14.5 billion.

Source: The Standard

https://www.thestandard.com.hk/section- ... pc-to-$36b

[winston]

not vested

CK Asset Holdings Limited
Speeding up land bank replenishment in HK

CKA’s 4% yoy increase in core EPS in FY22 was driven by asset disposal and share buyback.

We believe its hotel and pub operations will be key drivers to OP growth in FY23F, given the low base in FY22 due to the pandemic.

We estimate that its 7.6m sf of land bank GFA acquired in HK in FY18-22 should be sufficient for its sales pipeline for the next four years.

Reiterate Add with an unchanged TP of HK$59.2 (45% discount to NAV).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 04AF74324E

[winston]

vested

Brokers | Views

Haitong International| Decent transparency on 2022 recurring profit

JPMorgan│Development property earnings expected to decline in 2023; but dividend payout ratio forecast to remain unchanged

Jefferies│2022 property-related income weak with better-than-anticipated dividend payout ratio

Citigroup│2023 earnings expected to decline due to less development property income being recorded

UBS│Results in line; focus on potential removal from FTSE Global Real Estate Index


Related News: G Sachs Expects HK P-based Mortgage Rate Has Peaked, Keeps Buy Rating on NWD, CKA

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[winston]

not vested

CK Asset Holdings (1113 HK)

Strong war chest for accretive acquisitions

FY22 net profit was 2% higher at HK$21.7bn, broadly in line with our estimate

Final DPS rose 3.4% to HK$1.85

Strong net cash holding of HK$12.6bn

TP: HK$65

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=13376

[winston]

not vested

CKA Annual NP Fades 20% to $17.34B; Final DPS Drops to $1.62

CK ASSET (01113.HK) released its annual results ended December 2023.

Revenue from continuing operations amounted to $47.243 billion, down 16.1% YoY.

Net profit amounted to $17.34 billion, down 20% YoY. EPS was $4.86.

Dividend History
Announce Date Event Particular
2023/08/03 Interim D:HKD 0.43
2023/03/16 Final D:HKD 1.8500
2022/08/04 Interim D:HKD 0.4300
2022/03/17 Final D:HKD 1.7900

A final dividend of $1.62 was declared, down 12.4% from $1.85 declared in the same period of 2022. Full year dividend was $2.05, down 10.1% YoY.

Related News- JPM Expects HK Home Transactions to Stay Relatively High in Coming 1-2 Mths; Prices Stable for ST But May Weaken Again in Future

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

not vested

Broker│Opinion

Goldman Sachs│Dividend cut is negative surprise

HSBC Global Research│2023 results in line, but dividend cut is a negative surprise that points to operational challenges

Morgan Stanley│Dividend cut may cause negative reaction from investors

CCBI│Disappointed with dividend cuts

UBS│Unexpected dividend cut and possible exclusion from FTSE EPRA index will put pressure on share price

Citi│Dividend cuts negative, business outlook challenging

Related News: JPM Expects HK Home Transactions to Stay Relatively High in Coming 1-2 Mths; Prices Stable for ST But May Weaken Again in Future

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN