Company Reports

CK Asset's revenue and underlying profit grew 39% and 5% year on year, respectively, in the first half of 2026. Margin contraction was mainly due to the subdued profitability of completed residential projects. The firm raised the interim dividend by 5%, in line with underlying profit growth.

CK Asset Holdings has seen a shift in earnings exposure to recurring contributions from commercial properties, pub operations, and infrastructure investments from the volatile property development business. The company has diversified into businesses outside of the property sectors in Hong Kong and mainland China since 2017, which we view as conducive to buffering the elevated risks of new-home sales in both regions.

CK Asset sold units from existing residential projects in Hong Kong, such as 21 Borrett Road, in the first half of 2026. According to media reports, the firm also leased out two units at CK Center II, totaling more than 12,000 square feet, at rents of HKD 120-130 per square foot.

CK Asset Holdings has seen a shift in earnings exposure to recurring contributions from commercial properties, pub operations, and infrastructure investments from the volatile property development business. The company has diversified into businesses outside of the property sectors in Hong Kong and mainland China since 2017, which we view as conducive to buffering the elevated risks of new home sales in both regions.

CK Asset's 2025 revenue rose 20% year on year, driven by robust property sales bookings and resilient utilities income. However, recurring operating margin fell 170 basis points due to lower property selling prices. The final dividend rose 3%, in line with underlying profit growth.

CK Asset Holdings has seen a shift in earnings exposure to recurring contributions from commercial properties, pub operations, and infrastructure investments from the volatile property development business. The company has diversified into businesses outside of the property sectors in Hong Kong and mainland China since 2017, which we view as conducive to buffering the elevated risks of new home sales in both regions.

CK Asset sold over 500 units of the Blue Coast Phase 2 project in Hong Kong, generating over HKD 7 billion in proceeds in January-November 2025, per media reports. The company's other residential projects also saw robust sales, thanks to stabilizing home prices and easing mortgage rates.

CK Asset saw 13% and 2% year-on-year growth in revenue and underlying profit, respectively, for the first half of 2025. This was largely supported by a 59% increase in revenue from property sales. The firm announced an interim dividend of HKD 0.39, unchanged from the same period last year.

CK Asset Holdings has seen a shift in earnings exposure to recurring contributions from commercial properties, pub operations, and infrastructure investments from the volatile property development business. The company has diversified into businesses outside of property sectors in Hong Kong and mainland China since 2017, which we view as conducive to buffer the elevated risks of new home sales in both regions.

CK Asset's management guides for stable profit in 2025 versus 2024, as weak property sales profitability is mitigated by steady contributions from recurring earnings. The firm also aims to maintain a strong balance sheet with more prudent borrowings and acquisitions.

CK Asset's 2024 results were sluggish as revenue and earnings both missed our estimates. Net profit excluding revaluation gains deteriorated by 15% year on year, mainly due to lower revenue recognition and margins for the property sales business as well as higher operating expenses.

CK Asset Holdings has seen a shift in earnings exposure to recurring contributions from commercial properties, pub operations, and infrastructure investments from the volatile property development business. The company has diversified into businesses outside of property sectors in Hong Kong and mainland China since 2017, which we view as conducive to buffer the elevated risks of new home sales in both regions.

CK Asset closed 2024 with a significant property sales recovery, as contracted sales in Hong Kong exceeded HKD 16 billion with over 1,000 units sold, according to government data.

We reinitiate CK Asset with an HKD 37 per share fair value estimate, no-moat rating, Standard Capital Allocation Rating, and Medium Morningstar Uncertainty Rating. CK Asset was established in 2015 when Cheung Kong Holdings spun off its property holdings, and it remains one of the largest property developers in Hong Kong. Despite weak home demand during the market downturn, CK Asset’s recently launched projects were well-received by homebuyers, thanks to interest-rate cuts and affordable pricing. While we expect the company’s top line to be materially boosted by new project completions in the next few years, the subdued margins of units sold will likely dilute its profitability. This could be partly offset by recurring earnings growth from its property rental and infrastructure businesses. Given that, we expect CK Asset’s operating margin to decline to 13.9% in 2028 from 16.8% in 2023. The company’s shares are trading in 4-star territory, and we think the current share price implies an attractive 2024 dividend yield of 5%.

CK Asset Holdings has seen a shift in earnings exposure to recurring contributions from commercial properties, pub operations, and infrastructure investments from the volatile property development business. The company has diversified into businesses outside of property sectors in Hong Kong and mainland China since 2017, which we view as conducive to buffer the elevated risks of new home sales in both regions.

We are dropping coverage of CK Asset. We provide broad coverage of more than 1,500 companies globally and periodically adjust our coverage according to investor interest and staffing.

CK Asset Holdings, or CKA, reported higher-than-expected full-year 2020 results, underpinned by better margin on China property revenue booking, offsetting lower recurrent earnings. Core earnings totaled HKD 19.3 billion, down about one third year on year, but 8% better than our projection. Full-year dividend was HKD 1.80 per share, down 14% year on year. We rolled our model forward to account for the better margin on development properties, or DP, as well as the recently announced proposed acquisition in infrastructure assets. We maintain our fair value estimate of HKD 69, and the company's narrow economic moat rating. While the decline in recurrent earnings was disappointing, we believe the shares are trading at an attractive valuation given a strong balance sheet and scope for other capital management initiatives. The proposed acquisition will deploy HKD 17 billion in familiar infrastructure assets with accretive yield.

The Hong Kong Government’s 2020 policy address shifted focus from providing housing and land supply to more pressing issues, including strengthening political cohesion, managing the coronavirus pandemic and seeking new economic drivers. Housing- and land-related measures were unchanged from a year ago, with a primary goal of providing 316,000 public housing units in the coming 10 years. The government had identified the land needed for this purpose. Hence, the risk of further farmland resumption has receded at this point. Slower construction activities due to the pandemic should translate into lower labor and construction costs for real estate development projects. We maintain our moat ratings and fair value estimates for major Hong Kong developers, including Sun Hung Kai Properties, Henderson Land Development and CK Asset Holdings. Shares of major developers have underperformed the Hang Seng Index in recent months and are currently undervalued. With residential property prices holding steady, supported by record low interest rates, we favor Sun Hung Kai Properties for its robust development property pipeline.

CK Asset Holdings reported interim core profit of HKD 8.4 billion, down more than one third year on year. The results were lower than our estimate due to larger-than-expected loss from hotel and pub operations. Interim dividend was HKD 0.34 per share, one third lower than a year ago. We updated our model to reflect the more severe decline in hotel and pub segments by incorporating a 50% drop in the top line from 2019. We noted the resilient performance of the other segments. With 15% lower earnings for 2020, we lower our fair value estimate to HKD 69 from HKD 74, and maintain the company's narrow economic moat rating. We believe the shares are trading at an attractive valuation given the resilience of most recurrent income, room for large acquisitions, and scope for other capital management initiatives. In addition, we stress sharp recovery in 2021 is likely for hotel and pub operations.

CK Asset Holdings, or CK Asset, has a balanced profile with even exposure to the volatile residential trading business as well as more stable earnings from investment properties and REITs. However, given its recent foray into aircraft leasing, energy, and infrastructure businesses, CK Asset is no longer a pure real estate play, as reflected by the recent name change.