not vested
<Research Report>G Sachs: Bullish on CK PROPERTY's Higher Recurring Income, Active Capital Management
Goldman Sachs, in its report, considered CK PROPERTY (01113.HK)'s repurchase of shares at $632 million provides potential support for the share price, registering the beginning of active asset management of the company.
With low leverage amid continued strong cash flow from property sales and recurring income, the research house believed the company's balance sheet has sufficient capacity to support its mergers and acquisitions and asset management measures, including repurchase and dividend increase.
With the support of ex-Hutchison Group assets, in addition to positive adjustment of rental of its core offices, Goldman Sachs was of the view that CK PROPERTY will have higher recurring income in 2016E of $2.09/share, up 39.3% year on year.
The research house considered that CK PROPERTY, after posting a nearly record high of $56 billion contracted sales from last year, will have contracted sales of $43 billion this year, which was believed to generate net cash for CK PROPERTY.
The research house also commented that FORTUNE REIT (00778.HK), of which 28% interest is held by CK PROPERTY, will enable higher flexibility for CK PROPERTY when considering asset injections. The research house maintained CK PROPERTY at Buy with target price of $70.
Source: AAStocks Financial News