<Daily Summary> HSI Ends at 26,848, Gaining 239 Points; HSTI Finishes at 5,869, Up 6 Points; BABA Rises Over 3%; CHINA LIFE, HENDERSON LAND, ZIJIN MINING, SHK PPT, and CLP HOLDINGS Reach New Peaks; Market Turnover Increases

The analyst rating from the article is influenced by several key factors: 1. Market Performance: Hong Kong utilities have outperformed the broader market index, with returns of 6-8% compared to a 3% drop in the HSI, indicating strong defensiveness against market volatility. 2. Stable Cash Flows: Existing businesses in the sector are delivering stable cash flows, which is a positive fundamental indicator. 3. Potential Catalysts: There are company-specific catalysts that could enhance performance, such as CKI Holdings' M&A activities and CLP Holdings' asset restructuring. 4. Free Cash Flow (FCF): CKI is favored for its potential for better shareholder returns driven by solid FCF and the potential for value-accretive M&As. CLP is also preferred for its ample FCF, which supports shareholder returns. 5. Defensiveness: HKElectric is noted for its strong defensiveness due to its focus on the Hong Kong electricity market, although its tight FCF limits the likelihood of a near-term dividend hike. 6. Caution on Certain Stocks: The broker maintained a Hold rating for POWER ASSETS and HKCG due to their FCF crunch, which may restrict shareholder return growth. Overall, the ratings reflect a preference for companies with strong cash flows and potential for growth, while being cautious about those facing financial constraints.

The analyst rating for CLP Holdings remains a "Buy" due to several key factors highlighted in the HSBC Global Research report. The company's 3Q25 operational data met expectations, demonstrating resilience and stability across its regional operations. Additionally, CLP's decision to exit coal-fired generation in India reinforces its commitment to green energy. The report also notes that CLP's stable operations support the Buy thesis, and there is an expectation for an increase in the full-year dividend per share (DPS) to be distributed in early 2026. Furthermore, CLP is positioned as a top pick in Hong Kong's utilities sector, with anticipated growth momentum from the region's long-term strategic development and the ability to provide stable and sustainable dividends backed by ample free cash flow (FCF).