UBS released a research report stating that it has a positive view of the UK assets of Changjiang Infrastructure Group (01038) and maintains a “buy” rating. The target price was raised from HK$48 to HK$51, and earnings estimates for each year from 2023 to 2025 were raised by 4%, 4% and 1%, respectively, to reflect that exchange factors were more favorable than expected.
According to the price control documents released by the UK gas and electricity market regulator OFGEM last month, the bank expects the company's return on assets (ROA) to increase from 3% to 4.2% to 4.3%. Since the UK announced the reset of regulations in the middle of last month, Changjian's stock price performance has outperformed the Hang Seng Index by 16%. Nearly half of Changjian's net profit contribution comes from the UK.