UBS: POWER ASSETS (00006) half-year performance roughly meets expectations, target price raised to HKD 73.

UBS released a research report stating that POWER ASSETS (00006) achieved results for the first half of the year that were generally in line with expectations. The interim dividend remains unchanged at 78 Hong Kong cents per share, with no special dividend declared. According to the bank's estimates, after excluding the proceeds from the sale of the UK Power Networks and UK Rail as well as other one-time items, the recurring profit for the first half of the year, adjusted for discontinued operations, grew by 16% year-on-year on a like-for-like basis. UBS anticipates a neutral to slightly positive market reaction to the results and has downgraded its recurring profit forecasts for 2026 to 2028 by 11% to 12%, mainly reflecting the impacts from the sale of the UK Power Networks and UK Rail, partially offset by the higher interest income generated from the proceeds of these sales. The target price has been raised from HK$70 to HK$73, with a rating of "Buy." Earlier market news indicated that CKI HOLDINGS (01038) and Power Assets plan to sell their Australian sustainable distributed energy producer, EDL Energy. The management of Power Assets confirmed that there is long-term market interest in the asset and will consider selling it at an appropriate price, but there is no urgent pressure to sell.