CK Infrastructure: Possible Dual Listing in London and Ofwat Decision Send Shares Up

CK Infrastructure, or CKI, saw its share price rise 2.6% in Hong Kong on July 11, possibly due to two generally positive news items. First, the company announced that it is looking into a dual listing in London that we think could lift investor interest and liquidity. Second, UK water regulator Ofwat’s draft approval for the upcoming 2025-30 period was generally benign for CKI’s 30%-owned Northumbrian Water. We don’t expect any change to our earnings view on CKI from the news but continue to like the company at the current share price level, which is at a 13% discount to our fair value estimate of HKD 53.30 per share.