Haitong Securities International·2025-08-22 15:23Investment Rating - The report maintains an "Outperform" rating for CK Infrastructure Holdings [2][11]. Core Views - The performance in the first half of 2025 was in line with expectations, with a net profit attributable to shareholders of HK$4.348 billion, reflecting a 1% year-on-year increase. The company declared an interim dividend of HK$0.73 per share, a 1.4% increase from the previous year [3][9]. - The UK portfolio showed strong performance, contributing HK$2.223 billion, a 19% year-on-year increase, driven by various operational strengths. In contrast, the Australian and Canadian sectors underperformed [4][10]. - The company is undergoing a dynamic portfolio rebalancing, including the sale of UK Rails, which is expected to significantly reduce its net debt ratio [5][11]. Summary by Sections Financial Performance - For the first half of 2025, CK Infrastructure achieved a net profit of HK$4.348 billion, with cash on hand at HK$4.7 billion and a net debt to net total capital ratio of 10.6% [3][9]. - Revenue projections for 2025-2027 are estimated at HK$7.665 billion, HK$7.733 billion, and HK$7.683 billion respectively, with net profits expected to be HK$9.332 billion, HK$9.580 billion, and HK$9.688 billion [2][8]. Regional Performance - The UK infrastructure portfolio's contribution was HK$2.223 billion, up 19% year-on-year, while the Australian portfolio contributed HK$793 million, down 8% year-on-year [4][10]. - The Canadian portfolio contributed HK$275 million, a decrease of 9% year-on-year, primarily due to lower generation and prices [10]. Investment Strategy - The company plans to continue advancing various investment projects, including smart grids and renewable energy integration, while the sale of UK Rails is expected to enhance financial flexibility [5][11]. - The target price is maintained at HK$61.37, reflecting a positive outlook for the company's future performance [2][11].