CK ASSET(HK:01113) Ge Long Hui·2025-09-03 06:03Core Viewpoint - Morgan Stanley has downgraded the earnings per share (EPS) forecasts for Cheung Kong Holdings for 2025 to 2027 by 6%, 8%, and 11% respectively, reflecting the latest half-year performance and projections for property development, rental income, and interest costs [1] Group 1: Earnings Forecasts - The downgrade in EPS forecasts is based on the latest half-year performance, pre-sale and completion dates of property developments, rental income, and occupancy rate predictions [1] - The bank expects annual growth of 2% in EPS dividends starting from the fiscal year 2025, indicating that approximately 48% of the basic profit will be allocated for dividends [1] Group 2: Target Price and Rating - Morgan Stanley has raised the target price for Cheung Kong from HKD 38 to HKD 39, maintaining a "market perform" rating [1] - The firm views Cheung Kong as defensive, with low debt levels and diversified income sources, suggesting that the current valuation is reasonable, although it believes there are limited short-term catalysts [1]