Ge Long Hui·2026-03-19 05:12Core Viewpoint - Citigroup reaffirms a "Buy" rating for Cheung Kong Infrastructure Group, citing low business risk and significant hidden asset value from the sale of a 40% stake in the UK electricity network, which generated HKD 45 billion or HKD 17.9 per share [1] Group 1: Business Performance - The majority of the group's revenue comes from regulated return assets, indicating stability in earnings [1] - The potential for profit growth from mergers and acquisitions is highlighted as a key factor for future performance [1] Group 2: Valuation and Target Price - Citigroup employs a Sum-of-the-Parts (SOTP) valuation method, adjusting the target price for Cheung Kong Infrastructure from HKD 62.5 to HKD 73.5, factoring in expected asset sales in the first half of the year [1] Group 3: Dividend Outlook - The expected dividend yield of 4.1% for 2026 is considered low, but there is potential for an increase if significant mergers occur [1] - In the absence of major acquisitions within the next 12 to 18 months, the company may distribute sale proceeds as a special dividend, similar to the approach taken by its affiliate, Power Assets Holdings, after the spin-off of Hongkong Electric Investments [1]