CLSA has issued a research report indicating that CK ASSET (01113) is expected to see a slight increase in underlying profit for the 2025 fiscal year. Following the completion of the sale of its UK electricity network, the company is projected to achieve a net cash position, significantly strengthening its balance sheet and enhancing its ability to withstand macroeconomic uncertainties. Additionally, the reported profit for the 2026 fiscal year is anticipated to benefit from substantial disposal gains and significant cash inflows. It is expected that the company will allocate a portion of the proceeds to enhance medium-term shareholder returns, supporting steady growth in dividends per share over the coming years. The valuation methodology has been revised from a dividend yield spread to a net asset value discount. The target price has been raised from HK$34.1 to HK$55.8, reflecting improved sentiment in the property market and the potential for increased dividend distributions. The rating has been upgraded from "Hold" to "Outperform." CLSA noted that CK ASSET's net debt has decreased to HK$9.6 billion, with the net debt ratio remaining at a healthy 2.4% by year-end. The sale of the UK electricity network is expected to be finalized in the 2026 fiscal year, generating an estimated HK$22.2 billion in cash inflows and transitioning the group to a net cash position. Against a backdrop of heightened geopolitical risks and reduced expectations for near-term interest rate cuts, a net cash balance sheet will provide CK ASSET with greater financial resilience and strategic flexibility.