CK ASSET Sees Further Gains of Nearly 4% as Institutions See UK Power Asset Sale Boosting Share Buyback Potential

Stock News
Feb 27

CK ASSET (01113) rose nearly 4% again. At the time of writing, the stock was up 3.5%, trading at HK$49.74 with a turnover of HK$111 million. The news follows the recent announcement by three companies under the CK Hutchison Group of the sale of their UK power grid business interests to French utility company Engie, realizing over HK$110 billion in cash. UBS noted that CK ASSET's management stated the proceeds from the sale will be retained for new merger and acquisition opportunities and general working capital purposes, while also believing the transaction will enhance overall shareholder returns. Previously, management had emphasized four key capital allocation priorities: acquiring Hong Kong residential land, distressed commercial property assets, overseas infrastructure assets, and share buybacks. After nearly six months of observation, progress on the first three initiatives has been limited. UBS believes that, given the recent cash inflows from the UK rail joint venture and the Blue Coast project, coupled with the stock continuing to trade at a projected 2026 price-to-book ratio of 0.41 times (significantly lower than the 0.52-0.69 times range of other major developers), the likelihood of CK ASSET conducting a share buyback in 2026 has increased.

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