---
title: "UBS: CK Asset is nearly net cash after selling UK power assets, providing ammunition for future share buybacks"
description: "The UBS report pointed out that CK Asset sold a 20% stake in UK Power to Engie Group, expecting to recover HKD 22.15 billion in cash, with the net debt ratio approaching a net cash level. CK Asset wil"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/276974701.md"
published_at: "2026-02-26T02:29:55.000Z"
---

# UBS: CK Asset is nearly net cash after selling UK power assets, providing ammunition for future share buybacks

> The UBS report pointed out that CK Asset sold a 20% stake in UK Power to Engie Group, expecting to recover HKD 22.15 billion in cash, with the net debt ratio approaching a net cash level. CK Asset will record a sale gain of HKD 8.4 billion, with an annualized profit loss of HKD 2.1 billion for the fiscal year 2025. Management plans to use the proceeds from the sale for new acquisitions and share buybacks, expecting a positive response in the stock price, with a target price of HKD 54.9 and a rating of "Buy."

UBS published a report stating that CK ASSET (01113.HK) announced the sale of a 20% stake in UK Power to Engie Group. At the same time, Cheung Kong Infrastructure (01038.HK) and Power Assets Holdings (00006.HK) will also sell their respective 40% stakes. According to the announcement, CK ASSET will recover HKD 22.15 billion in cash, and the adjusted net debt ratio is expected to further decline from 7.3% in the first half of 2025 to near net cash levels (including the recent recovery of HKD 2 billion from the UK railway joint venture). CK ASSET will record a gain of HKD 8.4 billion from the sale, equivalent to 68% of the bank's original profit forecast for 2026. The annualized profit loss for the fiscal year 2025 is expected to be HKD 2.1 billion.

Management stated that the cash proceeds from the sale will be retained for new acquisition opportunities and general working capital purposes, while believing that this sale will enhance overall shareholder returns. Previously, management emphasized the acquisition of residential land in Hong Kong, distressed commercial real estate assets, overseas infrastructure assets, and share buybacks as its four major capital allocation priorities. After nearly six months of observation, progress on the first three initiatives has been limited. In light of the recent increase in cash recovery from the UK railway joint venture and Blue Coast, along with shares continuing to trade at a forecast price-to-book ratio of 0.41 times for 2026 (well below other major developers' 0.52-0.69 times), the bank believes the likelihood of CK ASSET conducting share buybacks in 2026 has increased. On the other hand, the bank expects CK ASSET will not distribute a special dividend after the transaction is completed, as management previously stated that share buybacks are a more effective tool for enhancing shareholder returns. A positive reaction in the stock price is anticipated following the announcement. The target price is HKD 54.9, representing a 40% discount to the forecast NAV of HKD 91.3, with a rating of "Buy."

### Related Stocks

- [00001.HK - CKH HOLDINGS](https://longbridge.com/en/quote/00001.HK.md)
- [01113.HK - CK ASSET](https://longbridge.com/en/quote/01113.HK.md)
- [159611.CN - GF CSI All Share Power Public Service ETF](https://longbridge.com/en/quote/159611.CN.md)
- [561700.CN - Bosera CSI All Share Electric Utilities ETF](https://longbridge.com/en/quote/561700.CN.md)
- [562550.CN - ChinaAMC Green Electricity ETF](https://longbridge.com/en/quote/562550.CN.md)
- [560190.CN - Penghua CSI All Share Utilities ETF](https://longbridge.com/en/quote/560190.CN.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| 中電去年少賺 11% 澳洲業務倒退 86% 全年股息增 1.6% | 中電（002）公佈去年總盈利 104.68 億元，按年下跌 10.8%。第四期中期股息每股 1.31 元，按年增 4%，全年總派息每股 3.2 元，按年升 1.6%。香港能源業務盈利增 7.1%，但澳洲業務大跌 85.6%。內地盈利下跌 1 | [Link](https://longbridge.com/en/news/276983383.md) |
| 樓市強勁反彈仍受質疑 正是見底訊號「人人看好才是最危險」｜李聲揚 | 樓市近期反彈引發質疑，儘管過去一年樓價走勢良好，買家信心回升。中原城市領先指數 CCL 最新報 149.4 點，單周上升 1.5%，為三年來最大單周升幅。市場對樓市的未來走勢仍存疑慮，歷史經驗顯示此時可能是樓市見底的信號。儘管樓價仍距歷史高 | [Link](https://longbridge.com/en/news/276522533.md) |
| 【每日通告】巴拿馬撤銷長和 (1) 旗下港口特許經營權，愛德新能源 (2623) 斥 2.18 億港元收購澳洲黃金生產商股權 | 巴拿馬最高法院裁決撤銷長和旗下港口的特許經營權，APM 接手管理。愛德新能源以 2.18 億港元收購澳洲黃金生產商近 10% 股權。星凱控股預計中期虧損收窄至 1200 萬至 1800 萬元。中國建築興業發盈警，預計全年純利大跌至 2.37 | [Link](https://longbridge.com/en/news/276676381.md) |
| 國泰航空完成了從卡塔爾航空進行的場外股份回購 | 國泰航空完成了從卡塔爾航空的場外股票回購 | [Link](https://longbridge.com/en/news/276816182.md) |
| CKH HOLDINGS 表示將繼續與其法律顧問就裁決和 “強制接管” 進行磋商 | 長和表示將繼續與其法律顧問就裁決和 “強制收購” 進行磋商 | [Link](https://longbridge.com/en/news/276678980.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.