SEHK:1

Stock Analysis Report

CK Hutchison Holdings

Executive Summary

CK Hutchison Holdings Limited, an investment holding company, operates in ports and related services, retail, infrastructure, energy, and telecommunications businesses worldwide.

Snowflake

Fundamentals

Solid track record average dividend payer.


Similar Companies

Share Price & News

How has CK Hutchison Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

1

0.7%

HK Industrials

0.3%

HK Market


1 Year Return

-7.9%

1

-10.4%

HK Industrials

1.3%

HK Market

Return vs Industry: 1 exceeded the Hong Kong Industrials industry which returned -10.4% over the past year.

Return vs Market: 1 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

1IndustryMarket
7 Day1.5%0.7%0.3%
30 Day5.1%1.2%0.5%
90 Day-3.6%-5.1%-4.6%
1 Year-3.9%-7.9%-6.4%-10.4%4.9%1.3%
3 Year-17.6%-25.5%-6.6%-16.2%15.3%3.7%
5 Year10.8%-45.4%2.2%-29.9%20.0%-0.006%

Price Volatility Vs. Market

How volatile is CK Hutchison Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CK Hutchison Holdings undervalued compared to its fair value and its price relative to the market?

7.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1 (HK$73.35) is trading above our estimate of fair value (HK$45.96)

Significantly Below Fair Value: 1 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1 is poor value based on its PE Ratio (7.2x) compared to the Industrials industry average (5.6x).

PE vs Market: 1 is good value based on its PE Ratio (7.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1 is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: 1 is overvalued based on its PB Ratio (0.6x) compared to the HK Industrials industry average (0.6x).


Next Steps

Future Growth

How is CK Hutchison Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1's forecast earnings growth (2.5% per year) is above the savings rate (2%).

Earnings vs Market: 1's earnings (2.5% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 1's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1's revenue (7.6% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 1's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1's Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

Past Performance

How has CK Hutchison Holdings performed over the past 5 years?

3.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1's earnings have grown by 3.8% per year over the past 5 years.

Accelerating Growth: 1's earnings growth over the past year (5.7%) exceeds its 5-year average (3.8% per year).

Earnings vs Industry: 1 earnings growth over the past year (5.7%) exceeded the Industrials industry -0.02%.


Return on Equity

High ROE: 1's Return on Equity (8%) is considered low.


Return on Assets

ROA vs Industry: 1 has a higher Return on Assets than the Industrials industry average last year.


Return on Capital Employed

ROCE Improving: 1 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is CK Hutchison Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1's short term assets (HK$329.6B) exceeds its short term liabilities (HK$233.4B)

Long Term Liabilities: 1's short term assets (329.6B) do not cover its long term liabilities (475.2B)


Debt to Equity History and Analysis

Debt Level: 1's debt to equity ratio (59.5%) is considered high

Reducing Debt: 1's debt to equity ratio has increased from 10.1% to 59.5% over the past 5 years.

Debt Coverage: 1's debt is not well covered by operating cash flow (17.7%).

Interest Coverage: 1's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet

Inventory Level: 1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is CK Hutchison Holdings's current dividend yield, its reliability and sustainability?

4.32%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%2.3%markettop25%6.2%industryaverage4.1%forecastin3Years4.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1's dividend (4.32%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1's dividend (4.32%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: 1's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.1%), 1's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1's dividends in 3 years are forecast to be well covered by earnings (31.9% payout ratio).


Next Steps

Management

What is the CEO of CK Hutchison Holdings's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Victor Li (55yo)

0yrs

Tenure

HK$79,020,000

Compensation

Mr. Li Tzar Kuoi, also known as Victor, B.Sc, M.Sc, LLD (Hon) serves as Non-Executive Director of Hongkong and Shanghai Banking Corporation Ltd. - New Zealand Branch. He had been Deputy Chairman of Cheung  ...


CEO Compensation Analysis

Compensation vs. Market: Victor's total compensation ($USD10.07M) is about average for companies of similar size in the Hong Kong market ($USD807.54K).

Compensation vs Earnings: Victor's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.3yrs

Average Tenure

67yo

Average Age

Experienced Management: 1's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

22.4yrs

Average Tenure

67yo

Average Age

Experienced Board: 1's board of directors are seasoned and experienced ( 22.4 years average tenure).


Insider Trading

Insider Buying: 1 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$33,330,70104 Sep 19
Li Ka Shing (Overseas) Foundation, Endowment Arm
EntityCompany
Shares500,000
Max PriceHK$66.66
BuyHK$2,174,04907 Aug 19
Frank Sixt
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director
Shares30,000
Max PriceHK$72.47
BuyHK$11,567,48007 Aug 19
Frank Sixt
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director
Shares30,000
Max PriceHK$385.58
BuyHK$3,788,06510 Jun 19
Kin Ning Fok
EntityIndividual
Role
Member of the Board of Directors
Group Co-MD & Executive Director
Shares50,000
Max PriceHK$75.76
BuyHK$750,50010 Jun 19
Edith Shih
EntityIndividual
Role
Member of the Board of Directors
Company Secretary & Executive Director
Shares10,000
Max PriceHK$75.05
BuyHK$3,768,30006 Jun 19
Kin Ning Fok
EntityIndividual
Role
Member of the Board of Directors
Group Co-MD & Executive Director
Shares50,000
Max PriceHK$75.37
BuyHK$1,499,50005 Jun 19
Edith Shih
EntityIndividual
Role
Member of the Board of Directors
Company Secretary & Executive Director
Shares20,000
Max PriceHK$74.98
BuyHK$370,75004 Jun 19
Edith Shih
EntityIndividual
Role
Member of the Board of Directors
Company Secretary & Executive Director
Shares5,000
Max PriceHK$74.15
BuyHK$3,670,75003 Jun 19
Kin Ning Fok
EntityIndividual
Role
Member of the Board of Directors
Group Co-MD & Executive Director
Shares50,000
Max PriceHK$73.42
BuyHK$14,811,70130 May 19
Kin Ning Fok
EntityIndividual
Role
Member of the Board of Directors
Group Co-MD & Executive Director
Shares200,000
Max PriceHK$74.06
BuyHK$7,440,90030 May 19
Kin Ning Fok
EntityIndividual
Role
Member of the Board of Directors
Group Co-MD & Executive Director
Shares100,000
Max PriceHK$74.41
BuyHK$7,448,08030 May 19
Yeh Kwong Lee
EntityIndividual
Shares100,000
Max PriceHK$74.48
BuyHK$3,709,20030 May 19
Kin Ning Fok
EntityIndividual
Role
Member of the Board of Directors
Group Co-MD & Executive Director
Shares50,000
Max PriceHK$74.18
BuyHK$141,001,65130 May 19
Kin Ning Fok
EntityIndividual
Role
Member of the Board of Directors
Group Co-MD & Executive Director
Shares350,000
Max PriceHK$404.69
SellHK$74,852,06510 Jan 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares984,450
Max PriceHK$76.03
BuyHK$22,712,89607 Dec 18
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares276,052
Max PriceHK$82.28
SellHK$2,047,19028 Nov 18
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares25,158
Max PriceHK$81.37
BuyHK$800,771,52123 Nov 18
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares9,759,865
Max PriceHK$82.05

Ownership Breakdown


Management Team

  • Edith Shih (67yo)

    Company Secretary & Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$23.38m
  • Frank Sixt (67yo)

    Group Finance Director

    • Tenure: 28.4yrs
    • Compensation: HK$72.06m
  • Dominic Lai (65yo)

    Deputy MD & Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$68.91m
  • Ka-shing Li (91yo)

    Senior Advisor

    • Tenure: 1.4yrs
  • Victor Li (55yo)

    Chairman & Group Co-MD

    • Tenure: 0yrs
    • Compensation: HK$79.02m
  • Hing Lam Kam (73yo)

    Deputy MD & Executive Director

    • Tenure: 26.7yrs
    • Compensation: HK$12.81m
  • Canning Fok (68yo)

    Group Co-MD & Executive Director

    • Tenure: 33.8yrs
    • Compensation: HK$226.29m
  • Edmond Ip (67yo)

    Deputy MD & Executive Director

    • Tenure: 26.1yrs
    • Compensation: HK$12.52m
  • Simon Man (62yo)

    General Manager of Accounts Department

    • Tenure: 0yrs
  • Hans Leung

    Investor Relations Contact

    • Tenure: 0yrs

Board Members

  • Edith Shih (67yo)

    Company Secretary & Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$23.38m
  • George Magnus (84yo)

    Non-Executive Director

    • Tenure: 39.8yrs
    • Compensation: HK$220.00k
  • Frank Sixt (67yo)

    Group Finance Director

    • Tenure: 28.4yrs
    • Compensation: HK$72.06m
  • Dominic Lai (65yo)

    Deputy MD & Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$68.91m
  • Chung Hin Wong (86yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$410.00k
  • Rosanna Wong (66yo)

    Independent Non-Executive Director

    • Tenure: 18.8yrs
    • Compensation: HK$280.00k
  • Victor Li (55yo)

    Chairman & Group Co-MD

    • Tenure: 0yrs
    • Compensation: HK$79.02m
  • Hing Lam Kam (73yo)

    Deputy MD & Executive Director

    • Tenure: 26.7yrs
    • Compensation: HK$12.81m
  • Canning Fok (68yo)

    Group Co-MD & Executive Director

    • Tenure: 33.8yrs
    • Compensation: HK$226.29m
  • Edmond Ip (67yo)

    Deputy MD & Executive Director

    • Tenure: 26.1yrs
    • Compensation: HK$12.52m

Company Information

CK Hutchison Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CK Hutchison Holdings Limited
  • Ticker: 1
  • Exchange: SEHK
  • Founded: 2014
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: HK$282.855b
  • Shares outstanding: 3.86b
  • Website: https://www.ckh.com.hk

Number of Employees


Location

  • CK Hutchison Holdings Limited
  • Cheung Kong Center
  • 48th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CKHU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1981
1SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 1981
1SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 1981
2CKDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1981
1SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 1981
CKHU.YOTCPK (Pink Sheets LLC)ADRUSUSDApr 2015
2CKADB (Deutsche Boerse AG)ADRDEEURApr 2015

Biography

CK Hutchison Holdings Limited, an investment holding company, operates in ports and related services, retail, infrastructure, energy, and telecommunications businesses worldwide. The company invests in, de ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:57
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.