DBS Bank expects the property market has bottomed out, benefiting CK ASSET's property sales, raising the target price to HKD 51.6 and reiterating a "Buy" recommendation

According to the research report from DBS, CK ASSET (01113.HK) has received pre-sale consent for the first and second phases of its Kai Tak project "Flower Language Sea," which will become a key sales project for the group this year. Since the fourth quarter of last year, the residential market in Hong Kong has emerged from the bottom, with improved demand for various properties, which will benefit the future sales of "Flower Language Sea." The firm believes that as this project, along with two other projects in Yuen Long and Kam Tin, is launched as planned, it is expected to receive a positive response, providing upward potential for the stock price.

In other business aspects, the UK pub business is facing ongoing cost inflation pressures, coupled with macroeconomic challenges limiting consumer spending, resulting in limited pricing power. In contrast, the profitability of infrastructure and utility assets remains stable. The group agreed to sell its UK railway asset interests last year, and it is expected to record substantial sale proceeds in the fiscal year 2026.

The firm believes that the group's balance sheet is robust, raising the target price from HKD 45.2 to HKD 51.6, maintaining a "Buy" rating