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1: AS Watson Listing Plan Will Drive A More Positive Risk Reward Profile

UK Telecom Merger And Multi-Sector Investments Will Shape Future Outlook

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AnalystConsensusTarget
Not Invested
Published 17 Aug 2025

Update shared on 18 Dec 2025

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Analysts have slightly lifted their price target on CK Hutchison Holdings, citing a modest improvement in long term valuation assumptions, underpinned by stable growth expectations and profitability metrics.

What's in the News

  • CK Hutchison Holdings is exploring a potential listing of its health and beauty arm, A.S. Watson, with early-stage discussions under way with financial advisers about timing and structure (Key Developments).
  • A Hong Kong listing of A.S. Watson could raise around USD 2 billion or more, reflecting the scale of the business and its contribution to the group’s valuation (Key Developments).
  • The company is also considering a possible dual listing of A.S. Watson in Hong Kong and the UK, with a transaction potentially targeted for the first half of next year (Key Developments).
  • A.S. Watson operates more than 17,000 stores across 31 markets, including Superdrug in the UK, Rossmann pharmacies in Germany, and Watsons stores across Asia, underscoring its global retail footprint (Key Developments).
  • Singapore state investment firm Temasek holds about 25 percent of A.S. Watson, and any listing decisions would likely involve coordination with the minority shareholder (Key Developments).

Valuation Changes

  • Fair Value Estimate unchanged at HK$62.01 per share, reflecting stable long term assumptions.
  • Discount Rate risen slightly from 10.56 percent to 10.72 percent, implying a marginally higher required return.
  • Revenue Growth effectively unchanged at about 10.92 percent, indicating consistent top line expectations.
  • Net Profit Margin broadly stable at around 9.23 percent, signaling no material shift in profitability assumptions.
  • Future P/E nudged higher from 8.97x to 9.01x, pointing to a modestly stronger relative valuation multiple.

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