CKI Holdings (01038.HK)

Business Summary:

The principal activities of CK Infrastructure Holdings are development, investment and operation of Energy Infrastructure, Transportation Infrastructure, Water Infrastructure, Waste Management, Waste-to-energy, Household Infrastructure and Infrastructure Related Businesses. The business area covers in Hong Kong, Mainland China, the United Kingdom, Continental Europe, Australia, New Zealand, Canada and the United States.

Financial Summary:

For the six months ended 30^th June, 2025, the group recorded profit attributable to shareholders of HK4,348 million, a year-on-year increase of 1%.

The profit from the United Kingdom (UK) contributed the highest figures (about 50%) among the country region. Its value stood at HK$2,223 million, an increase of 19% over the same period. In local currency, the result was an increase of 17%.   

CKI’s financial position is strong. As of 30^th June 2025, the cash on hand was HK$4.7 billion. While the net debt to net total capital ratio was a healthy 10.6%, and an industry low of 48.7% when taking into account the net debt in the infrastructure investment portfolio on a look-through basis.

The need to modernize infrastructure to enhance efficiency, support urbanisation and advance towards decarbonisation and green targets have strengthened the competitive edge of the group.

Risk:

1. Global geopolitical tension and economic uncertainty
2. Constrained public budgets
3. Tightened liquidity
4. Rising capital costs 

Technical Analysis:

The stock price ranges between $49.25 and $56.1 since May, 2025. Owing to $0.73 dividend factor on 9 Sep, 2025 and the capital inflow for this high-dividend stock of a relatively lower price, it is suggested to accumulate the share between the present price and $50.0. The target price for medium term is $56.0. The cut-loss price will be $47.5. (Note that the average long-term target price from foreign investment firm ranges from $57.8 to $63.5 following the recent interim result announcement.)

References

www.hkex.com.hk 

www.etnet.com.hk

www.aastocks.com.hk

www.cki.com.hk

I, Gary Tam, am a licensed person under the Securities and Futures Commission. Until the date this commentary was published, neither I and/or my affiliates are the beneficiary of the securities mentioned herein or are entitled to any financial interests in relation thereto.