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Citi Lifts CKI HOLDINGS (01038.HK) Target to $77; Rated Buy

 Citigroup, in its report, reiterated Buy on CKI HOLDINGS (01038.HK)  +0.200 (+0.298%)    Short selling $32.50M; Ratio 31.691%   with target price raised from $75.5 to $77. The broker said considered that CKI has acquired Canadian company Reliance and German energy management company ista, hence raised CKI's net profit forecast for 2017/18/19 by 5%/7%/8%. The broker said CKI is still the top pick among utility stocks in Hong Kong, and its M&As can boost the EPS performance. Also, POWER ASSETS (00006.HK)  +0.150 (+0.222%)    Short selling $25.78M; Ratio 17.542%   's special dividend payout can support CKI's M&As in terms of capital.

The 25% stake acquisition in Reliance can boost CKI's net profit by $75 million in 2017 and $223 million in 2018. The 35% stake acquisition in ista can contribute $120 million and $720 million net profit in 2017 and 2018 to CKI respectively.

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