Bank of America Securities has released a research report indicating that CK Asset Holdings Limited (stock code: 01113) reported a 5% year-on-year increase in core profit for the first half of the year, reaching HK$6.64 billion. This figure was 3% below the bank's expectations, primarily due to weaker profit margins from its Hong Kong property development segment. The interim dividend per share was raised by 5% to HK$0.41, surpassing the bank's forecast of no change. During the period, profit attributable to shareholders rose by 38% year-on-year to HK$8.683 billion, driven by a gain of approximately HK$9.787 billion from the sale of a UK joint venture, partially offset by an impairment of about HK$6 billion on Hui Xian Real Estate Investment Trust (stock code: 87001).

Bank of America Securities has maintained its "Buy" rating on the stock with a target price of HK$54, representing a 46% discount to its estimated net asset value per share. The report noted that property development sales revenue for the first half reached HK$21.6 billion, primarily driven by the booking of the Blue Coast project in Hong Kong. However, the property development profit margin remained low at 3.5%, with the Hong Kong portion dropping to just 3%, after accounting for a HK$1.5 billion provision related to pre-sale losses on the Blue Coast project in 2025. Management expects the property development margin to remain under pressure in the second half of the year but anticipates gradual improvement, supported by sales from the Blue Coast project and the booking of high-margin units from the Bordeaux project.

The Flower Sea project in Kai Tak remains targeted for launch in the second half of the year, with total contracted sales for the first half reaching approximately HK$8 billion. Rental income increased by 0.8% year-on-year, with a 5% decline in retail property rents offset by a 5% rise in office rents and a 6% increase in social infrastructure revenue. The occupancy rate for Cheung Kong Center II has exceeded 60%. Revenue from the British pub business grew by 4% year-on-year, with profit rising by 14%. Management has welcomed the UK government's proposed reduction in business rates but remains cautious about cost pressures, including wage inflation.