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<Research>UBS Expects CKH HOLDINGS (00001.HK) to Ride on Soaring Oil Prices, SWIRE PACIFIC A to Face Adverse Impact
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The geopolitical conflict in the Middle East wrought macro uncertainties, making the near-term risk/reward of Hong Kong conglomerates more sensitive to external influences, UBS said in a research report. The broker assumed that the Middle East conflict will remain unresolved until the end of 3Q26, with reduced tanker traffic through the Strait of Hormuz, and the average price of Brent crude oil for the year at USD132.5/ bbl. Under this scenario, UBS estimated that CKH HOLDINGS (00001.HK)'s NAV and 2026 earnings could hike by 9% and 66%, respectively, in light of the benefit from soaring oil prices through its subsidiary Cenovus Energy. Conversely, SWIRE PACIFIC A (00019.HK)'s NAV and 2026 earnings could drop by 19% and 26%, respectively, owing to fuel cost pressures affecting its subsidiary CATHAY PAC AIR (00293.HK). The broker assigned a target price of HKD67 and a Buy rating to CKH HOLDINGS, while SWIRE PACIFIC A received a Neutral rating with a target price of HKD72.7. AASTOCKS Financial News Website: www.aastocks.com |
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