01038 Should I Buy

The analyst rating for CKI HOLDINGS (01038.HK) is maintained at Neutral by Goldman Sachs due to a few key factors. While the company reported a net profit of HKD4.35 billion for 1H25, with core net profit growth of 2% YoY in line with street consensus, the broker has cut its EPS forecast for 2025-27 by 4-5% and adjusted its target price slightly from HKD60.2 to HKD60. This indicates a cautious outlook despite the expected profit growth driven by favorable terms during the upcoming reset period and the solid performance of its UK business. The projected average annual profit growth of 9-10% over the next 2-3 years suggests potential, but the adjustments to forecasts and target price reflect a more conservative stance.