Morgan Stanley expects CK ASSET's basic profit last year to drop by 4% to HKD 13.2 billion, estimating a 2% increase in annual dividend per share to HKD 1.77

Cheung Kong Infrastructure (01038.HK), POWER ASSETS (00006.HK), and CK ASSET (01113.HK) recently announced the sale of their jointly held UK Power Networks (UKPN) to the listed French utility company Engie for a total base price of approximately £10.548 billion (approximately HKD 110.754 billion). It is reported that the enterprise value of the transaction reaches £16.838 billion (approximately HKD 176.8 billion).

Morgan Stanley published a research report indicating that if the transaction is completed, CK ASSET is estimated to gain a profit of HKD 8.4 billion, with a net income of HKD 22.2 billion, which may turn into a net cash position based on pro forma calculations. CK ASSET stated that the net income will be used for new investment or acquisition opportunities as well as general working capital.

The bank expects CK ASSET's basic profit for the fiscal year 2025 to be HKD 13.2 billion, a year-on-year decrease of 4%, with an annual dividend per share expected to be HKD 1.77, a year-on-year increase of 2%, resulting in a payout ratio of 47%.

The bank maintains its target price at HKD 47, with a rating of "Overweight."