CK Asset Holdings (1113) H2 2025 earnings summary

Executive summary

• Revenue rose 19.9% year-over-year to HKD 85.85 billion, with 76% of revenue and 85% of profit now recurrent, reflecting a shift to stable income streams.

• Profit before investment property revaluation increased 2.7% to HKD 11.96 billion, but profit attributable to shareholders fell 20.3% to HKD 10.85 billion due to a revaluation deficit of HKD 1.11 billion.

• Dividend per share increased 2.3% to HKD 1.78, and net book value per share rose 2.3% to HKD 113.28.

Financial highlights

• Revenue: HKD 85.85 billion (+19.9% YoY); profit before revaluation: HKD 11.96 billion (+2.7% YoY).

• Profit attributable to shareholders: HKD 10.85 billion (-20.3% YoY) after revaluation deficit.

• Final dividend: HKD 1.39 per share; full year: HKD 1.78 (+2.3% YoY).

• Net debt: HKD 9.7 billion; net debt to total capital ratio: 2.3%; net debt to shareholders’ funds: 2.4%.

• Moody’s credit rating: A2 (stable); S&P: A (stable).

Outlook and guidance

• Management remains cautious due to global volatility, inflation risks, and uncertain interest rates.

• Focus will remain on financial discipline, long-term value creation, and selective investment.

• About HKD 19.69 billion in contracted property sales are scheduled for recognition in 2026, supporting future revenue.

• Proceeds from major asset disposals, including UK Power Networks and Eversholt UK Rails, are expected to provide significant cash inflows and gains in 2026.

• No immediate plans for special dividend from UK Power Networks sale; proceeds will strengthen balance sheet and provide flexibility.