CKI Holdings profit surges 389% on UK Power Networks divestment gains

CKI Holdings reported first-half net profit of HK$21.25 billion, up 389% from a year earlier on gains from selling UK Power Networks and UK Rails.

"These gains epitomise CKI's value creation capability as well as the embedded value of CKI's quality businesses throughout its investment portfolio," Chairman Victor T K Li said.

Turnover fell 3.6% to HK$19.63 billion. Earnings per share reached HK$8.43 versus HK$1.73 a year earlier. The UKPN disposal generated a gain of HK$11.21 billion on consideration of HK$44.63 billion, completed in May with CK Asset Holdings and Power Assets Holdings.

The divestments left CKI with net cash of HK$33.9 billion as of June 30, up from a net debt position at the end of 2025, giving the group firepower for acquisitions. The company declared an interim dividend of HK$0.75 per share, up 2.7%, payable Sept. 23.

Profit contribution from the UK portfolio rose 565% to HK$14.78 billion, driven by the UKPN and UK Rails gains. Power Assets Holdings contributed HK$5.29 billion, up 383%. Australia contributed HK$817 million, up 3%; Continental Europe HK$477 million, up 10%; Canada HK$278 million, up 1%; and New Zealand HK$91 million, up 14%. The Hong Kong and mainland China portfolio posted a net loss of HK$115 million as cement, concrete and asphalt volumes and prices stayed weak.

S&P Global Ratings reaffirmed CKI's A/Stable credit rating. The company, listed in July 1996, is marking its 30th anniversary. Li said CKI will continue to work with CK Group partners including CK Asset and Power Assets, which also hold ample cash, to invest in new projects while keeping strict financial discipline and avoiding a "must-win" mentality.

The disposal gains and HK$33.9 billion net cash position signal CKI's shift toward redeploying capital into new infrastructure assets. Investors will watch for acquisition announcements in the second half as the group studies opportunities across its markets in the UK, Australia, Europe, Canada and New Zealand.

This article is for informational purposes only and does not constitute investment advice.