Goldman Sachs believes that the company will recover its profit decline in the second half of the year, with a year-on-year increase of 3% in earnings per share and dividends for the year.
Intelligent Finance app has learned that Goldman Sachs has issued a research report stating that it maintains a 'buy' rating on CKH holdings (00001), and has lowered its earnings per share forecasts for 2024-2026 by 8% to 12% and raised its target price from HKD 57 to HKD 59. The bank believes that CKH's European telecommunications business will experience cyclical recovery, and that the regulatory overhaul of CKI Holdings (01038) will help drive overall profit growth in the next one to two years. It is expected that the compound annual growth rate from 2024 to 2026 will be about 12%.
According to the report, the company's net profit in the first half of the year reached CNY 10.2 billion, compared to CNY 11.2 billion in the same period last year, and the year-on-year difference was affected by one-off gains last year. The group's EBITDA increased by 5% year-on-year to CNY 52 billion, and the interim dividend per share fell by 9% year-on-year to CNY 0.69, equivalent to a dividend payout ratio of 26%. The bank expects the company to recover its profit decline in the second half of the year, with a year-on-year increase of 3% in earnings per share and dividends for the year.
