CLSA: Cheng family's increase in CTF SERVICES (00659) stake signals value

CLSA released a research report maintaining its "Outperform" rating on CTF SERVICES (00659) with a target price of HK$11.5, and maintaining its view that the stock is one of its top two picks in the Hong Kong conglomerate sector. According to Hong Kong Stock Exchange disclosures, the Cheng family purchased 34.2 million shares of CTF SERVICES in the open market last Tuesday (the 29th) at HK$8.1275 per share, representing approximately 0.75% of existing share capital, with a consideration of approximately HK$278 million. The bank noted that this marks the Cheng family's first open-market increase since December 2006, and also the largest net purchase by board members since the first half of 2005. The bank believes this increase represents an opportunistic purchase and sends a value signal.