JPMorgan: Maintains CK Asset Holdings (01113.HK) "Overweight" rating, target price HK$52, expects additional redevelopment costs for Anderson Road project to reach HK$1.2 billion to HK$1.4 billion

Zhito Finance APP has learned that JPMorgan released a research report maintaining a "Overweight" rating on CK Asset Holdings (01113.HK) with a target price of HK$52, citing reasons including the group's net cash position, limited impact from interest rate hike scenarios, and more potential capital recycling opportunities. CK Asset Holdings announced on the evening of October 8 that it had decided to demolish and rebuild three of the six residential towers in the "Hong Kong People's First Home Project" at Anderson Road, after discovering that the steel reinforcement severely deviated from the approved plans. The bank roughly estimates that the additional construction cost will be HK$1.2 billion to HK$1.4 billion, equivalent to 0.8% to 0.9% of market capitalization, and may reduce the project's development profit margin from 19% to 8% to 10%, dragging down full-year earnings by approximately 8%.