Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
The general evaluation of CK INFR.HDG.LTD (HK), a company active in the Building Materials & Fixtures industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date February 19, 2021, the c...
CK Infrastructure functions almost like an infrastructure trust where it owns a portfolio of regulated utilities and other infrastructure related activities with stable income streams. The company receives dividends from their assets and builds up cash to make periodic acquisitions of similar assets. So, low-mid single digit organic earnings growth is lifted by income contribution from acquisitions. Because of its stable cash flow stream, the company has been able to keep annual dividend growth ...
CK Infrastructure’s and Power Assets Holdings’, or CKI's and PAH's, respectively, management team shared a cautious outlook on the risk of upcoming regulatory resets that could lead to lower returns for its U.K. and Australian utilities. Following a preliminary review of both companies’ 2018 results and the risk of lower midcycle returns, we believe concerns are largely reflected in both companies’ current share prices. We maintain CKI’s fair value estimate at HKD 68 and we would want ...
CK Infrastructure’s and Power Assets Holdings’, or CKI's and PAH's, respectively, management team shared a cautious outlook on the risk of upcoming regulatory resets that could lead to lower returns for its U.K. and Australian utilities. Following a preliminary review of both companies’ 2018 results and the risk of lower midcycle returns, we believe concerns are largely reflected in both companies’ current share prices. We maintain CKI’s fair value estimate at HKD 68 and we would want ...
CK Infrastructure’s and Power Assets Holdings’, or CKI's and PAH's, respectively, management team shared a cautious outlook on the risk of upcoming regulatory resets that could lead to lower returns for its U.K. and Australian utilities. Following a preliminary review of both companies’ 2018 results and the risk of lower midcycle returns, we believe concerns are largely reflected in both companies’ current share prices. We maintain CKI’s fair value estimate at HKD 68 and we would want ...
In our January 31 International Compass we presented a case for an incrementally improving overall global outlook, with the caveat that market bottoms tend to be a process that develops over many weeks. Since the end of January, not a lot has changed to alter our views. We remain constructive overall and continue to believe that global equities (MSCI ACWI) are going through a bottoming process. Opportunities exist but Sector leadership is mixed. In our February International Strategy, we explor...
Cheung Kong Infrastructure’s, or CKI’s, business strategy has been to build and expand its operations through the acquisition of utility assets with stable and predictable income streams. From its initial core holding in Hong Kong Electric, which is now held through 38.9%-owned Power Assets Holdings, or PAH, CKI now derives more than 60% of its income from its U.K.-based investments. We estimate that its Hong Kong-based activities now make up less than 30% of total profit, with the balance m...
On the whole we tend to expect CK Infrastructure's, or CKI's, and Power Assets' planned spin-off of its European assets to be positive as we see this as an opportunity for the group to potentially realize market valuations of these holdings. We also see the cash raised as possibly being utilized for new acquisitions with potentially better growth prospects particularly as the next permutation of allowed returns on the U.K. assets could be less attractive. However, the move could negatively impac...
On the whole we tend to expect CK Infrastructure's, or CKI's, and Power Assets' planned spin-off of its European assets to be positive as we see this as an opportunity for the group to potentially realize market valuations of these holdings. We also see the cash raised as possibly being utilized for new acquisitions with potentially better growth prospects particularly as the next permutation of allowed returns on the U.K. assets could be less attractive. However, the move could negatively impac...
On the whole we tend to expect CK Infrastructure's, or CKI's, and Power Assets' planned spin-off of its European assets to be positive as we see this as an opportunity for the group to potentially realize market valuations of these holdings. We also see the cash raised as possibly being utilized for new acquisitions with potentially better growth prospects particularly as the next permutation of allowed returns on the U.K. assets could be less attractive. However, the move could negatively impac...
While the bid cleared competition watchdog hurdles, Australia’s Treasurer has indicated he is likely to block the CK Infrastructure, CK Asset, and Power Assets Holdings joint-bid for gas transmission company APA Group. The final decision will be made in two weeks and unless the group is able to provide assurances or tweak the deal to appease security concerns that too many of the key gas pipelines are in foreign hands, the rejection is a sure thing. As mentioned previously, we have a neutral v...
While the bid cleared competition watchdog hurdles, Australia’s Treasurer has indicated he is likely to block the CK Infrastructure, CK Asset, and Power Assets Holdings joint-bid for gas transmission company APA Group. The final decision will be made in two weeks and unless the group is able to provide assurances or tweak the deal to appease security concerns that too many of the key gas pipelines are in foreign hands, the rejection is a sure thing. As mentioned previously, we have a neutral v...
Following recent news, we are maintaining our fair value estimates on CK Hutchison, or CKH, at HKD 118, CK Infrastructure, or CKI, at HKD 68 and Power Assets Holdings or PAH at HKD 58, and believe all three are still relatively attractive although we have a preference for Best Idea CKH. Overall, we think the Economic Benefits Agreement, or EBA, is slightly positive for CKI and PAH and fairly neutral for CKH with no change to our moat ratings with CKI and PAH being narrow-moat and CKH with no moa...
Following recent news, we are maintaining our fair value estimates on CK Hutchison, or CKH, at HKD 118, CK Infrastructure, or CKI, at HKD 68 and Power Assets Holdings or PAH at HKD 58, and believe all three are still relatively attractive although we have a preference for Best Idea CKH. Overall, we think the Economic Benefits Agreement, or EBA, is slightly positive for CKI and PAH and fairly neutral for CKH with no change to our moat ratings with CKI and PAH being narrow-moat and CKH with no moa...
CK Infrastructure, or CKI; Power Assets, or PAH; and CK Asset Holdings’ joint bid for Australian gas transmission and distribution company APA Group is now nonbinding, although it is still subject to both shareholder and regulatory approvals for the AUD 13 billion purchase. APA’s board has recommended that shareholders accept the takeover. We have already reflected the potential earnings contribution from APA in our profit forecasts, assuming that CKI and PAH each take a 20% stake in APA and...
CK Infrastructure, or CKI; Power Assets, or PAH; and CK Asset Holdings’ joint bid for Australian gas transmission and distribution company APA Group is now nonbinding, although it is still subject to both shareholder and regulatory approvals for the AUD 13 billion purchase. APA’s board has recommended that shareholders accept the takeover. We have already reflected the potential earnings contribution from APA in our profit forecasts, assuming that CKI and PAH each take a 20% stake in APA and...
After following up with CK Infrastructure, or CKI, and Power Assets Holdings, or PAH, management, we lower our post-2018 earnings outlook by around 5%-7% leading to a cut in our fair value estimates to HKD 68 from HKD 72 for CKI and to HKD 58 from HKD 62 for PAH. The reduction is largely due to the absence of contribution from the Zhuhai power plant after 2018 as the plant reverts to local government ownership. We also expect CKI to take a smaller stake in Australian gas utility APA Group should...
After following up with CK Infrastructure, or CKI, and Power Assets Holdings, or PAH, management, we lower our post-2018 earnings outlook by around 5%-7% leading to a cut in our fair value estimates to HKD 68 from HKD 72 for CKI and to HKD 58 from HKD 62 for PAH. The reduction is largely due to the absence of contribution from the Zhuhai power plant after 2018 as the plant reverts to local government ownership. We also expect CKI to take a smaller stake in Australian gas utility APA Group should...
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