The analyst rating for POWER ASSETS (00006.HK) is maintained as a Buy by UBS due to the overall positive outlook on the recent sale of UK Power Networks (UKPN) to Engie. UBS highlighted that the valuation based on UKPN's Regulatory Asset Base (RAB) is attractive, and the expected gain from the transaction is significant, amounting to about HKD10.7 billion. However, UBS also noted that while the deal is positive, the likelihood of POWER ASSETS distributing a special dividend in the short term is low, as the company is more inclined to redeploy cash for potential new acquisitions. If suitable acquisition targets are not found, the possibility of a special dividend may increase. Overall, UBS believes the sale will have minimal impact on POWER ASSETS' earnings performance.
