Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Equity Bottom-Up

Cheung Kong Infrastructure Holdings, or CKI, has seen its share price decline over the past few months following disappointment over the blocked Ausgrid bid in Australia and the drop in the British pound to below the USD 1.30 level.We think both events are short-term momentum speedbumps and have limited impact on our fair value estimate, which is retained at HKD 70 per share, and our narrow moat rating. We continue to expect CKI to be able to afford to grow its DPS at around the 4%-5% pace annually over the next 10 years. While this may be slower than the 11% average growth pace seen in 2010-2014, we think it remains a decent rate of growth.Analyst: Jennifer Song

Cheung Kong Infrastructure Holdings, or CKI, has seen its share price decline over the past few months following disappointment over the blocked Ausgrid bid in Australia and the drop in the British pound to below the USD 1.30 level.We think both events are short-term momentum speedbumps and have limited impact on our fair value estimate, which is retained at HKD 70 per share, and our narrow moat rating. We continue to expect CKI to be able to afford to grow its DPS at around the 4%-5% pace annually over the next 10 years. While this may be slower than the 11% average growth pace seen in 2010-2014, we think it remains a decent rate of growth.Analyst: Jennifer Song

CKI Holdings: Much Ado About Sterling, No Change in Our View

Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

In November 2015, Power Asset Holdings ("PAH") shareholders voted against Cheung Kong Infrastructure's ("CKI") offer which killed the transaction. According to SFC's Rule No. 31.1, CKI has to wait 12 months from the lapse of the offer before they can relaunch another bid. The first offer tabled on 8 September 2015 was at an exchange ratio of 1.04 with HKD 5.00 in special dividends. CKI subsequently bumped the offer ratio to 1.066 and increased special dividend component to HKD 7.50. That was not enough. Most people wanted at least 1.10-1.20. The results of the vote showed... 49.29% of votes were against the scheme. Has CKI learnt its lesson, or more importantly, will they come back for PAH?

In November 2015, Power Asset Holdings ("PAH") shareholders voted against Cheung Kong Infrastructure's ("CKI") offer which killed the transaction. According to SFC's Rule No. 31.1, CKI has to wait 12 months from the lapse of the offer before they can relaunch another bid. The first offer tabled on 8 September 2015 was at an exchange ratio of 1.04 with HKD 5.00 in special dividends. CKI subsequently bumped the offer ratio to 1.066 and increased special dividend component to HKD 7.50. That was not enough. Most people wanted at least 1.10-1.20. The results of the vote showed... 49.29% of votes were against the scheme. Has CKI learnt its lesson, or more importantly, will they come back for PAH?

PAH/CKI - Almost a Year Since the 'Bloodshed'

APAC IPOs & Placements

Zhen Zhou, Toh

In June, <a href="https://www.smartkarma.com/entities/163" target="_blank" data-smartkarma-citation="entities:163:1">Cheung Kong Infrastructure (1038 HK)</a>  and China's State Grid made a bid for Ausgrid. But just last week, preliminary decision was made by Australia's Foreign Investment Review Board to reject it. The final decision should be out by this week. This is a good catalyst for CKI's discount to NAV to continue to deepen.In this insight, we analyze the holdco trade primarily on these five factors:<div class="sk-insight-content__block"><ol><li>What's on Offer</li><li>Reasons for Divergence</li><li>Statistics and Set-Up</li><li>Catalysts</li><li>Potential Risks</li></ol></div>

In June, Cheung Kong Infrastructure (1038 HK)  and China's State Grid made a bid for Ausgrid. But just last week, preliminary decision was made by Australia's Foreign Investment Review Board to reject it. The final decision should be out by this week. This is a good catalyst for CKI's discount to NAV to continue to deepen.In this insight, we analyze the holdco trade primarily on these five factors:What's on OfferReasons for DivergenceStatistics and Set-UpCatalystsPotential Risks

Cheung Kong Infra - Discount to NAV Likely to Deepen Further

<ul><li class="p1">CK Hutchison Holdings', or CKHH's, interim results revealed a stronger-than-expected performance from 3 Group that helped to offset weaker retail contribution.</li><li class="p1">The company’s management provided additional insight into its sensitivity to the British pound sterling, supporting our view that CKHH’s earnings would decline by less than 3% if the pound sterling were to fall by 10%.</li></ul>Analysts: Dan Baker &amp; Lorraine Tan

CK Hutchison Holdings', or CKHH's, interim results revealed a stronger-than-expected performance from 3 Group that helped to offset weaker retail contribution.The company’s management provided additional insight into its sensitivity to the British pound sterling, supporting our view that CKHH’s earnings would decline by less than 3% if the pound sterling were to fall by 10%.Analysts: Dan Baker &amp; Lorraine Tan

Building on Its Global Ports,infrastructure, Retail, and Telco Operations.

<ul><li class="p1">Power Assets Holdings', or PAH's, planned purchase of a 48.75% stake in Husky Energy’s western Canada pipelines and storage units has limited impact on our fair value estimate, which we maintain at HKD 73.</li><li class="p1">While the acquisition should be accretive, it lifts forecast profit by only around 3% on a full-year contribution basis.</li><li class="p1">PAH can easily afford the CAD 865.5 million cost, which would still leave the firm with an estimated net cash hoard of HKD 56 billion.</li></ul>Analysts: Jennifer Song &amp; Lorraine Tan

Power Assets Holdings', or PAH's, planned purchase of a 48.75% stake in Husky Energy’s western Canada pipelines and storage units has limited impact on our fair value estimate, which we maintain at HKD 73.While the acquisition should be accretive, it lifts forecast profit by only around 3% on a full-year contribution basis.PAH can easily afford the CAD 865.5 million cost, which would still leave the firm with an estimated net cash hoard of HKD 56 billion.Analysts: Jennifer Song &amp; Lorraine Tan

Minimal Impact to Power Assets' Fair Value Estimate From Proposed Husky Pipeline Purchase

Hong Kong

CK Infrastructure is a global infrastructure company with diversified investments in energy, transportation, water, and waste management sectors. It also produces construction materials like cement and asphalt. The company was founded in 1996 and is headquartered in Central, Hong Kong.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

CK Infrastructure (1038 HK)

CKI Holdings: Much Ado About Sterling, No Change in Our View

Cheung Kong Infrastructure Holdings, or CKI, has seen its share price decline over the past few months following disappointment over the blocked...

Morningstar, Inc.

PAH/CKI - Almost a Year Since the 'Bloodshed'

In November 2015, Power Asset Holdings ("PAH") shareholders voted against Cheung Kong Infrastructure's ("CKI") offer which killed the...

Crispin Francis

Cheung Kong Infra - Discount to NAV Likely to Deepen Further

In June, Cheung Kong Infrastructure (1038 HK) and China's State Grid made a bid for Ausgrid. But just last week, preliminary decision was made by...

Zhen Zhou, Toh

Building on Its Global Ports,infrastructure, Retail, and Telco Operations.

CK Hutchison Holdings', or CKHH's, interim results revealed a stronger-than-expected performance from 3 Group that helped to offset weaker retail...

Morningstar, Inc.

Minimal Impact to Power Assets' Fair Value Estimate From Proposed Husky Pipeline Purchase

Power Assets Holdings', or PAH's, planned purchase of a 48.75% stake in Husky Energy’s western Canada pipelines and storage units has limited...

Morningstar, Inc.

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)