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UBS: CKA's Europe Infra Contribution Underestimated; Special DPS in 1H Expected
2026-07-10 17:29:40
The contribution from CK ASSET (01113.HK)'s overseas infrastructure assets has been underestimated by the market, UBS opined in a research report. Valuations of regulated utilities in Europe have soared to about 10x-12x 2026E EV/EBITDA, close to the levels seen in the recent disposals of Eversholt Rail and UK Power Networks by CKH HOLDINGS (00001.HK) and CK ASSET. Considering that most overseas infrastructure assets were acquired several years ago, UBS expected further disposals in the future could record additional gains.

Including the HKD8.4 billion gain from the disposal of UK Power Networks, the broker estimated the group to declare a special dividend of HKD0.39-0.82 per share in 1H26, implying a payout ratio of 16-34%. Together with the broker's forecast FY2026 regular dividend of HKD1.78 per share, total dividend yield was expected to reach 5-6%. UBS maintained its Buy rating on CK ASSET with an unchanged TP of HKD62.
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