UBS has issued a research report increasing its price target for CKH HOLDINGS (SEHK: 00001) by 19%, from HK$84.6 to HK$101, while maintaining a "Buy" rating.

The bank noted that the value of CKH's port infrastructure and telecommunications assets has risen by 25% since 2023.

Recent asset disposals validate the company's robust portfolio management capabilities, which benefit from its flexible holding periods and strong balance sheet.

UBS believes there are still further investment opportunities ahead.

Assuming no further asset sales, the bank forecasts the company's free cash flow will grow at an annual rate of 22% during 2026-2027, supporting higher dividends—18% to 26% above current market consensus.

This also implies the company will be sufficiently funded to pay regular dividends, with UBS projecting a payout ratio of 40%, and could generate free cash flow yields of 13% and 16% in the 2026 and 2027 fiscal years, respectively.