UBS stated that Power Assets reported a 2% year-on-year increase in recurring net profit for 2025, reaching HK$6.2 billion. The full-year dividend per share was maintained at HK$2.82, representing a dividend yield of 4.6%. Financing costs for the period rose 35% year-on-year to HK$228 million. The overall performance was largely in line with expectations.

The bank believes that a favorable mergers and acquisitions environment, coupled with management's strong track record in acquisitions, supports its positive view on the company. Consequently, UBS reaffirmed its "Buy" rating and a target price of HK$70.

The report indicated robust performance across regional operations, with the Australian business standing out. Profits there grew 4% year-on-year to HK$1.5 billion, benefiting from a new regulatory period for SAPN that increased the allowed return starting last July, alongside higher connection fee income in Victoria. Profits from the UK business remained flat at HK$3.2 billion, primarily due to the normalization of higher one-off rebates from UKPN in the previous year. NGN and WWU received favorable final determinations last December.

Regarding guidance, management expects the sale of UKPN to be completed by the end of June this year, with a transaction value of £4.2 billion. The sale of the UK rail income stream was completed in January this year. On regulatory resets, management holds a positive view on upcoming increases to allowed returns for UK gas and Australian utilities.

For mergers and acquisitions, the group will focus on mature, regulated energy markets and is open to collaborating with CK Infrastructure and CK Asset Holdings. UBS anticipates a generally neutral market reaction to the earnings, with investor focus likely shifting to the deployment of cash proceeds following the asset disposals.