Update shared on 04 Dec 2025
Fair value Increased 0.47%Analysts have nudged their price target for CK Hutchison Holdings slightly higher to approximately $62.01 from about $61.73, citing a modestly lower discount rate and stable expectations for revenue growth, profit margins, and future earnings multiples.
What's in the News
- CK Hutchison is exploring an initial public offering of its AS Watson Group health and beauty retail arm, with talks under way with financial advisers on the timing and structure of a potential deal (Key Developments).
- A Hong Kong listing of AS Watson could raise about USD 2 billion or more, with a dual listing in the UK also under consideration. This could potentially enhance the group’s access to capital markets (Key Developments).
- AS Watson operates more than 17,000 stores across 31 markets, including Superdrug in the UK, Rossmann pharmacies in Germany, Watsons stores across Asia, and various grocery, wine, and electronics outlets in Hong Kong (Key Developments).
- Singapore’s Temasek Holdings owns roughly 25% of AS Watson, and any listing decisions will need to factor in the interests of existing strategic investors, according to people familiar with the matter (Key Developments).
- Considerations around the AS Watson listing remain preliminary, with no final decisions yet on the size, venue mix, or exact timing of the offering, despite earlier media reports pointing to a dual listing in Hong Kong and the UK in the first half of next year (Key Developments).
Valuation Changes
- Fair Value Estimate nudged higher from HK$61.73 to about HK$62.01, reflecting a marginal upward revision in intrinsic valuation.
- Discount Rate reduced modestly from approximately 10.79% to about 10.56%, implying a slightly lower perceived risk or required return.
- Revenue Growth kept effectively unchanged at around 10.92%, indicating stable expectations for top line expansion.
- Net Profit Margin maintained at roughly 9.23%, with only a negligible numerical adjustment that does not alter the profitability outlook.
- Future P/E edged down slightly from about 8.98x to around 8.97x, pointing to a minimally lower valuation multiple applied to future earnings.
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