Elevator Pitch
I maintain a Neutral rating on Hong Kong-listed property conglomerate CK Asset Holdings Limited (CHKGF) (CNGKY) [1113:HK].
CK Asset cut its interim dividend by -27% YoY from HK$0.52 in 1H 2019 to HK$0.34 in 1H 2020, which came as a negative surprise. CK Asset's status as a defensive yield play is in doubt, given Covid-19 headwinds and a likely increased allocation of capital to acquisitions.
Nevertheless, CK Asset's valuations remain relatively attractive as evidenced by recent insider purchases, which justifies my Neutral rating on the stock. CK Asset trades