DBS analyst Ian Chui maintained a Buy rating on CK Infrastructure Holdings (CKISF – Research Report) on March 22 and set a price target of HK$49.70.
Ian Chui has given his Buy rating due to a combination of factors that underscore CK Infrastructure Holdings’ strong financial footing and strategic positioning. Chui highlights the company’s robust and stable cash flows derived from its diversified portfolio of infrastructure assets across multiple geographies, including Hong Kong, Mainland China, the UK, and Australia. These assets, spread across various sectors such as energy, transportation, and water, benefit from regulatory protection and long-term contracts that provide predictable income streams. Moreover, the company’s disciplined acquisition strategy, which focuses on high-quality assets at reasonable valuations without overleveraging, is seen as a prudent approach to growth.
Additionally, CK Infrastructure’s conservative balance sheet management and risk mitigation strategies are key factors in Chui’s favorable outlook. The company is expected to experience steady revenue growth, with key growth drivers identified in the UK and Australian markets, where regulatory resets are anticipated to lead to higher revenue streams. Despite the risks associated with foreign exchange exposure and potential impacts of interest rate hikes, the analyst maintains a Buy rating with a target price of HK$49.70, underpinned by the company’s inflation-linked, diversified, and resilient business model, which is projected to deliver stable earnings and an attractive dividend yield of at least 6%.
CKISF’s price has also changed moderately for the past six months – from $4.710 to $5.965, which is a 26.65% increase.
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CK Infrastructure Holdings (CKISF) Company Description:
CK Infrastructure Holdings Ltd. is an investment company, which engages in the development, investment, and construction of power plants, industrial buildings, and other infrastructure facilities. It operates through the followign segments: Investment in Power Assets, Infrastructure Investments, and infrastructure Related Business. It includes energy infrastructure, transportation infrastructure, water infrastructure, and commercialization of infrastructure related business. The company was founded in May 1996 and is headquartered in Hong Kong.
