Excluding One-Off Gains for Now and Lowering DPS To Reflect Stable Growth Pace, FVE Unchanged

We revise our projection for CK Hutchison's, or CKH's, 2022 earnings, removing a one-off gain and lower our financial expenses forecast. We tweak some assumptions after considering the possible impact from port and retail operations disruptions in China from the COVID-19 lockdowns. Our fair value estimate remains HKD 78. As CKH has not provided further clarity on its possible one-off gains related to its British telco tower assets sales and the merger of 3 Indonesia with Indosat Ooredoo, we believe it is difficult to provide accurate projections for this figure. This doesn't change our cash flow estimates. Forecast DPS is smoothened out to reflect a 2.5% annual growth. CKH remains attractive but we have a preference for infrastructure subsidiary CKI Holdings, given its inflation resistant earnings.