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<Research>M Stanley Rates CKI HOLDINGS/ POWER ASSETS/ CLP HOLDINGS as Equalweight as HK Utilities' Yield Appeal Relatively Low
Recommend 15 Positive 31 Negative 12 |
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Morgan Stanley has released a research report rating the Hong Kong utility sector as Equalweight due to the relatively low yield appeal of Hong Kong utility stocks. In Morgan Stanley's estimate, the upside for Hong Kong utilities' yield spread will be limited in the near term given that their yield spread remains relatively low amid the high level of US 10-year treasuries. Based on the positive outlook for the GBP and AUD this year, the broker expected CKI HOLDINGS (01038.HK) and POWER ASSETS (00006.HK) to achieve constructive earnings growth. However, compared to CKI HOLDINGS, the broker was more optimistic about POWER ASSETS in light of the latter's better yield prospects and stable growth in operating cash flow outperforming its peers. It raised its target price for POWER ASSETS from $43 to $49 with an Equalweight rating, and for CKI HOLDINGS from $41 to $48 with an Equalweight rating. In contrast, it cut its target price for CLP HOLDINGS (00002.HK) from $74 to $69 and downgraded its rating from Overweight to Equalweight. AAStocks Financial News |
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