Citigroup has issued a research report stating that CKH HOLDINGS (00001) is expected to achieve a 7% year-on-year increase in profit for 2025. The report reiterates the company's highly diversified business portfolio across geographies and sectors, which helps mitigate inherent systemic risks and navigate market volatility. Looking ahead, management anticipates that port throughput may slow due to geopolitical tensions, but solid profit growth from the retail and infrastructure businesses should offset this potential risk. The bank has set a target price of HK$78 and maintains a "Buy" rating.

According to the report, CKH HOLDINGS' 2025 results were largely in line with expectations. Reported net profit was HK$11.841 billion, down 31% year-on-year. However, after adding back a one-time non-cash loss of HK$10.469 billion related to the Vodafone-Three merger, underlying profit reached HK$22.31 billion, representing a 7% increase and broadly matching the bank's forecast of HK$22.798 billion.

Citigroup cited management's comments that CKH HOLDINGS' strategy remains focused on unlocking asset value while strengthening its financial position, which is viewed as the optimal approach to enhancing shareholder returns. The company will efficiently recycle capital and concentrate on businesses with long-term resilience. With the advancement and application of artificial intelligence, management believes that businesses of scale can benefit from cost synergies and productivity improvements, which are also key considerations for potential mergers and acquisitions.

Additionally, the group indicated that its exposure to the Middle East accounts for less than 0.5% of total port throughput, and retail stores in the region represent approximately 0.2% of the total store count. Reflecting the 2025 fiscal year results, recent operational trends, and updated exchange rates, Citigroup has lowered its profit forecasts for the group by 3% to 5% for the current and next year. The bank has also introduced profit forecasts for the 2028 fiscal year. Furthermore, a new 90-day positive catalyst watch has been added for CKH HOLDINGS, suggesting that any potential M&A transactions involving its port, retail, or telecommunications businesses could unlock asset value and narrow the net asset value discount.