CK Asset's Robust Balance Sheet Appears Key to Investment Appeal
Dow Jones
Aug 17
0621 GMT - CK Asset's robust balance sheet appears key to the Hong Kong-listed property developer's investment appeal, say DBS Group Research analysts in a note. The company moved into a net cash position following the disposals of UK Power Networks and Eversholt UK Rail, they note. The company would have more than HK$100 billion of debt headroom for acquisitions, assuming gearing increases to 20%, they say. Its balance sheet therefore provides CK Asset substantial financial flexibility to pursue deals when attractive opportunities emerge, they note. DBS raises its target price to 55.24 Hong Kong dollars from HK$52.86 and maintains its buy rating. Shares rise 2.3% to HK$46.02.
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