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CK Hutchison Holdings Ltd 00001

Morningstar Rating
HKD 38.20 +0.40 (1.06%)
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Company Report

CK Hutchison's Broad Portfolio Provides Sector and Geographic Diversification

Conglomerate CK Hutchison Holdings is expected to continue focusing on acquisitions, spinoffs, and cost-containment to raise its profit. We think efforts to improve customer retention at its drugstore chain Watsons and the tweaks in its telecom activities will help drive profit. The steps toward recovery from the coronavirus pandemic in China and Hong Kong should help short-term growth, but this may be offset by rising inflation.

Price vs Fair Value

00001 is trading at a 38% discount.
Price
HKD 37.00
Fair Value
HKD 84.00
Uncertainty
Medium
1-Star Price
HKD 66.00
5-Star Price
HKD 93.00
Economic Moat
Lflqg
Capital Allocation
Lngwrxcb

Bulls Say, Bears Say

Bulls

Currency headwinds should diminish, and a recovery in the euro, pound, and Australian dollar will help lift CKH’s cash flow and earnings in Hong Kong dollar terms.

Bears

Limited acquisition opportunities means CKH will see slowing earnings growth. Even if it has cash to spend, there may not be suitable purchases to strengthen its core business.

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News

Trading Information

Previous Close Price
HKD 37.80
Day Range
HKD 37.4038.30
52-Week Range
HKD 35.3554.55
Bid/Ask
HKD 38.15 / HKD 38.20
Market Cap
HKD 146.31 Bil
Volume/Avg
6.2 Mil / 6.4 Mil

Key Statistics

Price/Earnings (Normalized)
6.70
Price/Sales
0.53
Dividend Yield (Trailing)
7.52%
Dividend Yield (Forward)
7.52%
Total Yield
7.52%

Company Profile

CK Hutchison Holdings, or CKH, is a Hong Kong headquartered conglomerate with key businesses in ports, retail, infrastructure, and telecommunications. The company was created in 2015 to house the merged assets of Cheung Kong Holdings and Hutchison Whampoa as the group sought to flatten out and simplify its original holding structure. CKH contains most of the businesses previously housed in Hutchison Whampoa, minus the property assets, which were spun off into their own listing, CK Asset Holdings. Telecommunications and infrastructure activities now make up the largest share of EBITDA, at around 27%.
Sector
Industrials
Industry
Conglomerates
Stock Style Box
Large Value
Total Number of Employees
300,000

Competitors

Valuation

Metric
00001
VOD
01038
Price/Earnings (Normalized)
6.7010.5113.66
Price/Book Value
0.270.370.89
Price/Sales
0.530.4918.28
Price/Cash Flow
2.441.5029.45
Price/Earnings
00001
VOD
01038

Financial Strength

Metric
00001
VOD
01038
Quick Ratio
1.140.861.38
Current Ratio
1.470.891.48
Interest Coverage
5.205.2210.77
Quick Ratio
00001
VOD
01038

Profitability

Metric
00001
VOD
01038
Return on Assets (Normalized)
3.97%2.36%5.09%
Return on Equity (Normalized)
8.58%6.07%6.92%
Return on Invested Capital (Normalized)
5.60%4.33%5.55%
Return on Assets
00001
VOD
01038
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