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<Research>JPM: CKH HOLDINGS (00001.HK) Stock Price Has Largely Factored in Port Sale Approval
JPMorgan stated that the exclusive 145-day negotiation period between CKH HOLDINGS (00001.HK), BlackRock (BLK), and Terminal Investment Limited (TiL) regarding the potential sale o...
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<Research>JPM: CKH HOLDINGS (00001.HK) Stock Price Has Largely Factored in Port Sale Approval
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JPMorgan stated that the exclusive 145-day negotiation period between CKH HOLDINGS (00001.HK)  -0.900 (-1.751%)    Short selling $66.60M; Ratio 12.076%   , BlackRock (BLK), and Terminal Investment Limited (TiL) regarding the potential sale of global ports ended last Sunday (27th).

CKH confirmed that discussions are still ongoing, with plan to invite major Chinese strategic investors as key members of the acquisition consortium, aligning with street consensus reported by Bloomberg last month, which identified COSCO Shipping as a potential investor.

Related NewsUBS: CKH HOLDINGS (00001.HK) to Introduce CN Investors to Port Transactions w/ TP $58.8, Rating Buy
Although the final outcome remains uncertain, the market has largely factored in the scenario of sale approval. The broker predicted that if the sale is approved, the base case for CKH's stock price will be HKD55. In a bull case where the net asset discount decreases to 30%, CKH's stock price will be HKD73. If the sale does not proceed, CKH's stock price could theoretically fall to HKD41.

As for COSCO Shipping, the broker assumed that its potential participation conforms with its strategy to establish a vertically integrated business model, similar to its peer Maersk. The company's strong cash reserves and cash generation capability underpin its acquisition efforts.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-08-01 16:25.)

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