首次覆盖：海外基建投资标杆，分红稳增的现金牛

Investment Rating - The report initiates coverage with an "OUTPERFORM" rating for CK Infrastructure Holdings, with a target price of HK$52.85, compared to the current price of HK$46.00 [3][5]. Core Insights - CK Infrastructure Holdings is recognized as a top performer in overseas infrastructure investment, characterized as a cash cow with a steadily increasing dividend [2][5]. - The company has a diversified portfolio across various regions, with significant investments in the UK, Australia, Europe, New Zealand, Canada, and the US [5][8]. - The financial health of the company is robust, with a stable cash dividend growth and a low debt ratio, maintaining a net asset liability ratio of around 25% [5][11]. Summary by Sections Overview of the Company - CK Infrastructure Holdings was established in May 1996 and focuses on infrastructure sectors such as power distribution, gas networks, transportation, water services, and waste-to-energy [5][8]. - The company is primarily owned by Cheung Kong Holdings, which holds a 75.67% stake [8]. Financial Performance - For the first half of 2023, the company reported revenue of HK$32.17 billion, a decrease of 6$42.39 billion, down 4% [5][10]. - The UK segment contributed the most to revenue, accounting for 36% of total income [5][10]. - The company maintains a high dividend payout ratio of around 80%, with an average dividend yield of 4.1% [5][11]. Business Segments - The UK and Europe segment includes major investments such as UK Power Networks and Northern Gas Networks, contributing significantly to profitability [16][18]. - The Australian segment includes SA Power Networks and various renewable energy projects, while the Canadian segment has shown strong growth with a 31% increase in profit contribution [22][23]. - The mainland China and Hong Kong segment has seen a decline in profitability due to reduced traffic on toll roads and lower demand for cement [26]. Regulatory Environment - The report discusses the completion of the reset of price control rules in the UK, which is expected to have a smaller-than-anticipated impact on profitability [27][30]. - The new RIIO-ED2 price control mechanism, effective from 2023 to 2028, sets a capital return rate of 3.9%, lower than the previous rate of 4.4% [30][31]. Profit Forecast and Valuation - The forecast for FY24-26 anticipates revenues of HK$72.03 billion, HK$74.17 billion, and HK$75.09 billion, with corresponding net profits of HK$78.18 billion, HK$84.17 billion, and HK$85.07 billion [5][10]. - The report employs a DCF valuation method, resulting in a target price of HK$52.85 per share, reflecting a PE ratio of 15.82 for 2024 [5][10].