Bank of America Securities released a research report reaffirming a 'buy' rating on CKH Holdings (00001). The company's earnings forecast for the next two years has been roughly maintained, with an increase of 4% and 12%, respectively. The company is expected to reduce its mid-term and annual dividends by 10% to an annual dividend rate of 36%, and the target price has been lowered by 5% to HKD 55.
The bank believes that the company's operations are recovering this year after a difficult fiscal year 2023, but performance growth may be dragged down by a one-time gain last year. The bank expects the company to achieve a profit of 10.3 billion yuan in the first half of the year, a year-on-year decrease of 8%. The double-digit growth in pre-tax profits of ports and telecommunications businesses in Europe and the profits of Cenovus Energy will be offset by a one-time gain of 1.8 billion yuan from the sale of Cenovus subscription rights last year. Excluding the above benefits, the company's first-half profit increased by 10% year-on-year.
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