CLSA released a research report stating that Hong Kong-listed conglomerates are still seen by equity investors as a high-quality yield safe haven, with resilient asset portfolios and rising dividends. The brokerage maintained its earnings forecasts, ratings, and target prices unchanged. The sector currently trades at a 37% discount to net asset value, compared with a long-term average of 30%. CK Hutchison Holdings Ltd (ASX: 00001) and Chow Tai Fook Creation Ltd (ASX: 00659) remain its top picks.

The brokerage noted that investor interest remains concentrated on family-owned enterprises, with attention on the next round of catalysts and their timing. Investors generally agree that Hong Kong-listed conglomerates are a good yield safe haven and are not heavily held by investors. Amid elevated uncertainty, investors favor the resilient asset portfolios across the conglomerates covered by the brokerage. Based on its currently published forecasts, the combined recurring profit and cash dividends of Hong Kong-listed conglomerates are expected to grow 6% and 9% year-on-year respectively in 2026, to US$8 billion and US$4.2 billion, with CK Hutchison Holdings Ltd (ASX: 00001) and Swire Pacific Ltd A (ASX: 00019) as the two main drivers.

The brokerage said the conglomerates most discussed with investors were CK Hutchison Holdings Ltd (ASX: 00001), Jardine Matheson Holdings Ltd (ASX: J36), and First Pacific Co Ltd (ASX: 00142). Under high oil prices, Cenovus Energy will support CK Hutchison's earnings growth, while property and non-property businesses underpin Swire Pacific's forecast recurring profit growth for 2026 and 2027. For Jardine Matheson and First Pacific, although investors are not enthusiastic about Indonesia, they agree that both possess high-quality assets and attractively valued shares.

Regarding CK Hutchison Holdings Ltd (ASX: 00001), investors had little opposition to the brokerage's thesis but are focused on the timeline of several potential transactions, including the port sale first announced in March 2025. In the absence of catalysts, the brokerage prefers shares with steadily rising dividends. For MTR Corporation Ltd (ASX: 00066), the brokerage continues to see risks of a dividend cut or equity financing due to high future capital expenditure, with guidance of HK$84.8 billion for 2026 to 2028.

On ratings, apart from MTR Corporation Ltd (ASX: 00066) which is rated "hold," all others carry positive ratings. CK Hutchison Holdings Ltd (ASX: 00001) is rated "high conviction outperform" with a target price of HK$110. Chow Tai Fook Creation Ltd (ASX: 00659) is rated "outperform" with a target price of HK$11.5, offering a sustainable dividend yield of 7.6% per year at the current price. Swire Pacific Ltd (ASX: 00019) and First Pacific Co Ltd (ASX: 00142) are each rated "outperform," with target prices of HK$114 and HK$6.8 respectively. MTR Corporation Ltd (ASX: 00066) has a target price of HK$33.