Market Chatter: CTF Services in Talks With Yuexiu for $2 Billion Sale of Toll Roads

MT NewswiresJan 2 13:50

Major brokerage rating丨Citi: Maintains "Outperform" rating for CHOW TAI FOOK with a Target Price of 8.6 HKD.

Citi issued a report stating that Bloomberg reported that CHOW TAI FOOK may sell its toll road project for 2 billion USD. Although there has been no official announcement, the bank estimates the transaction valuation based on a projected yearly profit of the road project at a PE of 10.6 times for the coming year, which is higher than the industry average of 7.8 to 9.8 times. If the price of 2 billion USD is confirmed, it will increase CHOW TAI FOOK's projected Net Asset Value (NAV) for the fiscal year 2026 by approximately 7%. CHOW TAI FOOK's current stock price is at a 42% discount to NAV. The bank currently maintains a 'Outperform' rating on CHOW TAI FOOK with a Target Price of 8.6 HKD.

Gelonghui FinanceJan 2 13:24 · Ratings

In "The Big Company," Lyon stated that if Shanghai New World (00017.HK) defaults, the financial impact on CHOW TAI FOOK (00659.HK) would be manageable.

Lyon issued a report indicating that Bloomberg reported CHOW TAI FOOK (00659.HK) may sell its toll road project for 2 billion dollars. Although there has been no official announcement, based on the projected annual profit from the road project, the trade valuation is estimated at a PE of 10.6 times for the next year, which is higher than the industry average of 7.8 to 9.8 times. If the price of 2 billion dollars is confirmed, it will increase CHOW TAI FOOK's projected net asset value (NAV) for fiscal year 2026 by about 7%. CHOW TAI FOOK's current stock price is at a 42% discount to NAV. The report also noted that if its affiliate NEW WORLD DEV (00017.HK) defaults on its debt, it could affect CHOW TAI FOOK's profitability.

AASTOCKSJan 2 11:27

CHOW TAI FOOK (00659.HK) is exploring the sale of a 2 billion dollar toll road project in mainland China.

According to Bloomberg, it is reported that CHOW TAI FOOK, owned by the Cheng family of Shanghai New World, is negotiating with the state-owned enterprise Yuexiu Group to sell a batch of road projects in mainland China worth approximately 2 billion USD, with discussions currently at an initial stage. Sources indicate that CHOW TAI FOOK is also discussing the Trade with other buyers and has informed them that these road Assets can be sold in smaller parts. It is reported that the potential sale mentioned above is part of CHOW TAI FOOK's review of its toll road strategy, aimed at raising capital, unlocking value for investors, and focusing on developing Businesses with higher growth potential. CHOW TAI FOOK is a company under CHOW TAI FOOK.

AASTOCKSDec 31, 2024 13:50

According to reports, Xiesheng Construction has laid off employees.

Local media reported that Kwan Shing Construction began laying off employees due to operational difficulties, some of whom may transition to the CHOW TAI FOOK-founded Hiexing Construction (00659.HK). The chairman of the Construction Industry Trade Union, Zhou Sijie, stated yesterday (26th) that, to his knowledge, Kwan Shing had to dismiss employees due to issues with the volume of work. An announcement is expected within this week, and he feels shocked by the news, noting that it is the end of the year, leaving the laid-off workers feeling lost. He mentioned that the industry has been suffering from severe payment delays due to a decrease in work volume, with private projects reducing by more than sixty percent. Additionally, private developers not listed on the Development Bureau's registry have not benefited from public works, and he suggested that the government should break down projects into smaller parts.

AASTOCKSDec 27, 2024 09:53

NWS Extends Long Stop Date of Unit's Acquisition Deal

MT NewswiresDec 19, 2024 20:12