UBS: Chow Tai Fook's risk-return profile remains attractive, target price raised to HK$84.6.

UBS released a report stating that the risk-return ratio of CK Asset Holdings remains attractive, with the target price raised from 67 Hong Kong dollars to 84.6 Hong Kong dollars. The assumption of a 45% discount to net asset value remains unchanged, and the "buy" rating is maintained. The bank believes that the market may underestimate the potential increase in profits from Cenovus Energy due to high oil prices, as well as the recent profits from asset sales. UBS pointed out that Cenovus' first quarter profit increased by 83% year-on-year, and oil prices remained high in April. In addition, the sale of the UK power grid and VodafoneThree transactions are expected to bring in profits of 14.5 billion Hong Kong dollars and 4.7 billion Hong Kong dollars respectively for CK Asset, expected to be booked in the second half of 2026. The bank has raised its basic profit forecasts for CK Asset for the years 2026 to 2028 by 95%, 7% and 2% respectively, and has increased its dividend forecasts for 2026 and 2027 by 32% and 6% respectively.