Goldman Sachs: Downgrades CKI HOLDINGS target price to HKD 60, rating "Neutral"
Goldman Sachs released a research report stating that CKI HOLDINGS' net profit for the first half of this year was HKD 4.35 billion. After deducting foreign exchange gains and other non-recurring items, its core net profit increased by 2% year-on-year to HKD 4.28 billion, in line with market expectations, benefiting from the robust performance of its UK operations. The bank has lowered its earnings per share forecast for the company from 2025 to 2027 by 4% to 5%, and its target price has been reduced from HKD 60.2 to HKD 60, maintaining a "Neutral" rating. The bank stated that, given the rising interest rate environment and the need to incentivize regulated companies to invest, it expects more favorable terms during the upcoming reset period to drive profit growth for individual assets, with the group expected to achieve an average annual profit growth of 9% to 10% over the next 2 to 3 years
According to the Zhitong Finance APP, Goldman Sachs released a research report stating that CKI HOLDINGS (01038) had a net profit of HKD 4.35 billion in the first half of this year. After excluding foreign exchange gains and other non-recurring items, its core net profit increased by 2% year-on-year to HKD 4.28 billion, in line with market expectations, benefiting from the robust performance of its UK operations. The bank has lowered its earnings per share forecast for the company by 4% to 5% for 2025 to 2027, and its target price has been reduced from HKD 60.2 to HKD 60, maintaining a "Neutral" rating.
The bank stated that given the rising interest rate environment and the need to incentivize regulated companies to invest, it expects more favorable terms during the upcoming reset period to drive profit growth for single assets, anticipating that the group will achieve an average annual profit growth of 9% to 10% over the next 2 to 3 years
