Movement Alert|CK ASSET Rises 3.1% in Regular Trading, Interim Results Release Today with Special Dividend Expectations Rising

Market Focus
Aug 13

On August 13, CK ASSET rose 3.1% in regular trading, trading at HK$47.76/share, with turnover of approximately HK$72.49 million.

On the news front, the company's board of directors convened today to review interim results for the six months ended June 30 and to consider the declaration of an interim dividend. Market expectations for a special dividend have intensified following the completion of the UKPN (UK Power Networks) disposal, which is expected to generate substantial one-off gains.

UBS maintains a \"Buy\" rating with a target price of HK$62, projecting a special dividend of HK$0.39-0.82 per share to reflect UKPN sale proceeds, implying a payout ratio of 16%-34%. Combined with its forecast of HK$1.78 organic dividend per share, total dividend yield is estimated at 5%-6%. Morgan Stanley maintains an \"Overweight\" rating with a target price of HK$57, expressing optimism on potential share buybacks and special dividends post-results. The company is expected to have transitioned to a net cash position following the asset disposal.

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