EU Investigates BlackRock and MSC's Acquisition of CK Hutchison's Barcelona Terminal

The analyst rating for CKH Holdings is based on several key factors: 1. Demerger Plans: CKH is planning to demerge its retail business, AS Watson, for a dual listing in Hong Kong and the UK, which is expected to raise approximately USD2 billion. This strategic move is seen as a way to unlock value from its unlisted businesses. 2. Strong Performance of Retail Business: The retail segment is performing well, with an EBITDA of about USD1 billion in the first half of 2025, reflecting a year-over-year growth of 12.5%. This strong performance supports the potential for value creation through the demerger. 3. Market Valuation: The report highlights that the market currently assigns an implied valuation of zero to CKH's unlisted businesses, including ports, retail, and telecom. The expectation is that listing or selling these assets will unlock significant value. 4. Positive Stock Outlook: The stock price is anticipated to outperform the market over the next 60 days, leading to a target price set at HKD61 and an Overweight rating from the analyst. Overall, the combination of strategic demerger plans, strong business performance, and the potential to unlock value from unlisted assets contributes to the positive analyst rating for CKH Holdings.

The analyst rating for CKH HOLDINGS was influenced by several key factors highlighted in the article. Firstly, the company delivered remarkable operational performance across all business segments in the first half of 2025. Additionally, there are ongoing discussions with major strategic investors in China regarding the sale of port assets, which is expected to be mutually beneficial, although the completion of this deal may take time due to regulatory complexities. Furthermore, Citi raised its net asset value (NAV) forecast for CKH HOLDINGS from HKD118.31 to HKD138.69 per share, taking into account the potential sale of port assets and the revaluation of all listed subsidiaries at market price. As a result, the broker increased its target price for CKH HOLDINGS from HKD53 to HKD61, while maintaining a Buy rating, reflecting a 56% discount to NAV. These factors collectively contributed to the positive analyst rating.