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Li Ka-shing’s CK Asset to resume buy-backs to boost share price following profit plunge amid poor outlook: analysts

  • Citi and Jefferies, which have lowered their target prices for the developer’s stock, both see a resumption of share buy-backs as likely
  • The company has ‘limited positive catalysts’ other than buy-backs to drive its stock price in the near term, Jefferies says

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People walk near flags of CK Hutchinson Holdings outside the company’s headquarters in Hong Kong on March 21, 2019. Photo: AFP
Salina Li
CK Asset Holdings, Li Ka-shing’s flagship property developer, may resume share buy-backs to spur its stock price in the near term, analysts said, after it reported an 18.9 per cent profit tumble in the first six months of 2023.
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“We see a strong commitment from CKA on both a steadily rising dividend per share policy as well as share buy-backs,” Ken Yeung, property analyst with Citi, wrote in a research note on Thursday. “We expect CKA may resume share buy-backs in the near future, which can serve as a near-term catalyst.”

Jefferies also sees buy-backs as likely, as they would support the share price while the company has “limited positive catalysts” to speak of, the investment bank said in a note on Thursday.

CK Asset has already spent HK$13.6 billion (US$1.7 billion) buying back over 31 million shares during the first half of 2023, as “it is a good way to enhance shareholder value”, Victor Li Tzar-kuoi, Li Ka-shing’s elder son and chairman of the group, said during an analyst briefing on Thursday.
Victor Li Tzar-kuoi, chairman of CK Asset and CK Hutchison, at the announcement of CK Asset’s 2022 results in March 2023. Photo: Handout
Victor Li Tzar-kuoi, chairman of CK Asset and CK Hutchison, at the announcement of CK Asset’s 2022 results in March 2023. Photo: Handout

Li did not comment directly on future buy-backs.

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