Citigroup has issued a research report assigning a target price of HK$62.5 and a "Buy" rating to CK Infrastructure Holdings (01038). CK Infrastructure recently held an online meeting with the management of UK gas distribution company Northern Gas Networks (NGN). In 2024, NGN is expected to contribute approximately 8% of CK Infrastructure's net profit and about 13% of the net profit for HK Electric Investments (00006), which also carries a "Buy" rating. The bank believes that CK Infrastructure's reverse roadshow is beneficial for enhancing transparency regarding the company and its assets. Overall, considering that the reset of NGN's rate of return has just been completed and its regulatory asset base is expected to grow at a mid-single-digit rate, Citigroup anticipates that NGN's earnings will maintain steady, moderate growth over the next five years. Most importantly, CK Infrastructure is expected to maintain its current dividend per share. The "Buy" rating is affirmed, supported by an anticipated 2025 dividend yield of 4.5%, a figure deemed particularly attractive ahead of expected US interest rate cuts in 2026.