not vested
CK Asset Holdings
Quick View
Target Price*HK$ 49.8
Recomendation**BUY
Market Cap*HK$ 154,183m
Profile
CK Asset Holdings (CKAH) was the property arm of the Cheung Kong Group. The company was spun off as CK Property in 2015 and renamed as CK Asset Holdings in 2017.
Within the property business, CKAH develops residential properties for sale, holds investment properties for rental, and operates hotels.
CKAH also owns c. 32%, 27%, and 18% stakes in Huxian REIT, Fortune REIT, and Prosperity REIT respectively.
In the non-property business, CKAH has investments in aircraft leasing, brewery/pubs, and a portfolio of utilities/infrastructure companies to generate recurring income.
Key Statistics
Dec HK$ m 2019 2020f 2021f
Revenue 82,382 49,517 58,905
Net Profit 28,729 17,717 20,791
Profit Gth (%) 27 (40) 17
PE (X) 5.4 8.7 7.4
Div Yield (%) 5 3.4 3.9
Disc. to NAV (%) na (62) (62)
Source: DBS Group Research (At the time of publication)
Recent Developments
16 Feb 2021CK Asset Holdings - 21 Borrett Road fetches record price
1 Feb 2021CK Asset Holdings - Eyes on dividends
7 Aug 2020CK Asset Holdings: Saving bullets for acquisition
5 Aug 2020CK Asset Holdings: Interim result preview
20 Aug 2019Enhanced and diversified earnings profile
2 Aug 2019Quality play in these uncertain times
22 Mar 2019Capital recycling bearing fruit
Our Views
BUY with HK$49.8 TP. The stock is trading at 62% discount to our appraised current NAV. Valuation is by no means expensive.
The Li family continues to raise its stake in the company, casting a vote of confidence over its long-term future.
Investors, however, are keeping an eye on the dividend outlook, following the interim dividend cut. This would dictate the share price performance in the near term
Source: DBS
https://www.dbs.com.sg/treasures/aics/s ... 113_HK.xml