CK Asset Shares Fall Sharply After Profit Decline, Dividend Cut
By Amanda Lee
CK Asset's shares fell sharply Friday after the Hong Kong property developer reported a profit decline for 2023 and lowered its dividend.
Shares dropped 11% to 32.60 Hong Kong dollars in Friday morning trade.
The company, which also holds a portfolio of assets spanning pubs and utilities, on Thursday reported 2023 net profit of HK$17.34 billion (US$2.22 billion), down 20% from the prior year.
Revenue fell to HK$71.08 billion from HK$79.55 billion a year ago. CK Asset said the contribution from property sales fell in 2023 due to a scaling back of its property-development business.
CK Asset cut its final dividend to HK$1.62 a share from HK$1.85 for 2022.
"The dividend disappointment together with a lack of earnings catalysts will undermine CKA's perceived share price defensiveness," Jefferies analysts said in a note commenting on earnings.
"Despite the almost inevitable negative impact this [dividend] decision will have on the share price, we still prefer CK Asset's asset light business model and potential share buyback," CCB International analysts Lung Siufung and Elena Chen said in a note.
Looking ahead, Citi analyst Ken Yeung said CK Asset could maintain its dividend this year due to likely higher recurring profit.
However, the stock may be removed from the FTSE EPRA Global Developed Index in the May review, he said.
Write to Amanda Lee at amanda.lee@wsj.com
(END) Dow Jones Newswires
March 22, 2024 00:07 ET (04:07 GMT)
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