Bank of America Securities believes that 90% of the profits of Cheung Kong Infrastructure (01038) come from overseas markets, enjoying exchange rate advantages.
According to the Zhongtong Finance APP, Bank of America Securities released a research report stating that it maintains a "buy" rating for Cheung Kong Infrastructure (01038), believing that 90% of its profits come from overseas markets, enjoying exchange rate advantages. It is expected that the company's financial costs may decrease. With the generally expected interest rate cut environment, its returns are also attractive. The target price is raised from HKD 49.4 to HKD 49.9.
The report stated that the company announced yesterday (the 12th) that it is considering a potential second and additional listing of its shares on overseas stock exchanges without any fundraising. It is expected to enhance the company's image, provide a broader market for trading of company shares, and benefit shareholders from different regions. On the other hand, the UK water regulator Ofwat released a draft decision on regulated water assets, allowing the equity cost of the company's Northumbrian Water project during the 2025-2030 regulatory period to be 4.8%, better than market expectations.