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<Research>Daiwa Chops CKI HOLDINGS (01038.HK) TP to $59 as Progress on Thames Water Acquisition Helps Ease Mkt Concerns
Recommend 62 Positive 96 Negative 57 |
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The recent share price drop in CKI HOLDINGS (01038.HK) may be triggered by the controversy over the sale of the Panama port business by its parent company, CKH HOLDINGS (00001.HK), Daiwa released a research report saying. CKI HOLDINGS submitted a non-binding offer for the financially troubled Thames Water in the UK, which Daiwa believed is likely to win the bid given the Group's experience in successfully improving operations, Daiwa added. Although CKI HOLDINGS has incentives to issue new shares in the UK to improve share liquidity, according to management, this is not a desirable option as CKI HOLDINGS' share price was undervalued recently. If the Group completes the Thames Water deal or acquires the operating rights to turn around the business, it is believed that the market's concerns about political interference will be allayed. Therefore, the broker reiterated rating at Buy on the Group, and chopped its target price from $63 to $59. AAStocks Financial News |
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