Morgan Stanley has updated its financial model for CKI HOLDINGS (01038) based on its 2025 performance, according to a research report.

After excluding earnings contributions from the sales of UKPN and UK Rails, the firm has lowered its recurring profit forecasts for 2026 and 2027 by 13% and 7%, to HK$7.6 billion and HK$8.3 billion, respectively.

It has also introduced a recurring profit forecast of HK$8.7 billion for 2028.

The price target has been raised from HK$62 to HK$64, reflecting an upward revision in the estimated value of the company's core regulated assets.

At the current share price, the expected dividend yield is approximately 4.4%, which is comparable to the yield on the US 10-year Treasury note.

The firm maintains its "Market Perform" rating on the stock.