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.

Rewards

Trading at 37.7% below its fair value

Revenue is forecast to grow 13.92% per year

Earnings grew by 2.1% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -3.7% per year for the next 3 years

Debt is not well covered by operating cash flow

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Undervalued 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

Stable Share Price: 1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.0%

1

5.2%

HK Industrials

7.4%

HK Market


1 Year Return

-38.8%

1

-36.1%

HK Industrials

-22.7%

HK Market

Return vs Industry: 1 underperformed the Hong Kong Industrials industry which returned -33.5% over the past year.

Return vs Market: 1 underperformed the Hong Kong Market which returned -20.3% over the past year.


Shareholder returns

1IndustryMarket
7 Day12.0%5.2%7.4%
30 Day-24.2%-16.5%-11.2%
90 Day-30.8%-26.6%-17.3%
1 Year-36.2%-38.8%-33.1%-36.1%-19.9%-22.7%
3 Year-40.3%-46.1%-28.3%-35.7%-5.3%-14.8%
5 Year-35.8%-67.7%-33.2%-53.9%-8.7%-23.4%

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?

37.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1 (HK$51.45) is trading below our estimate of fair value (HK$82.64)

Significantly Below Fair Value: 1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1 is good value based on its PE Ratio (5x) compared to the Industrials industry average (5.1x).

PE vs Market: 1 is good value based on its PE Ratio (5x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: 1's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 1 is good value based on its PB Ratio (0.4x) compared to the HK Industrials industry average (0.4x).


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?

-3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1's earnings are forecast to decline over the next 3 years (-3.7% per year).

Earnings vs Market: 1's earnings are forecast to decline over the next 3 years (-3.7% per year).

High Growth Earnings: 1's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 1's revenue (13.9% per year) is forecast to grow faster than the Hong Kong market (9.9% per year).

High Growth Revenue: 1's revenue (13.9% 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%).


Next Steps

Past Performance

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

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1 has high quality earnings.

Growing Profit Margin: 1's current net profit margins (13.3%) are lower than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: 1's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: 1's earnings growth over the past year (2.1%) is below its 5-year average (6.1% per year).

Earnings vs Industry: 1 earnings growth over the past year (2.1%) exceeded the Industrials industry -0.02%.


Return on Equity

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


Next Steps

Financial Health

How is CK Hutchison Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1's short term assets (HK$216.8B) exceed its short term liabilities (HK$159.3B).

Long Term Liabilities: 1's short term assets (HK$216.8B) do not cover its long term liabilities (HK$454.7B).


Debt to Equity History and Analysis

Debt Level: 1's debt to equity ratio (58.1%) is considered high.

Reducing Debt: 1's debt to equity ratio has increased from 10.1% to 58.1% over the past 5 years.

Debt Coverage: 1's debt is not well covered by operating cash flow (20%).

Interest Coverage: 1's interest payments on its debt are well covered by EBIT (4.6x 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 0.6x debt).


Next Steps

Dividend

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

6.16%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 1's dividend (6.16%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.67%).

High Dividend: 1's dividend (6.16%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.29%).


Stability and Growth of Payments

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 (30.7%), 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 (31.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Victor Li (55yo)

no data

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 ($USD10.19M) is above average for companies of similar size in the Hong Kong market ($USD1.10M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tzar Kuoi Li
Chairman & Group Co-MDno dataHK$79.02m0.075% HK$149.1m
Kin Ning Fok
Group Co-MD & Executive Director34.25yrsHK$226.29m0.16% HK$309.3m
Frank Sixt
Group Finance Director28.83yrsHK$72.06m0.0043% HK$8.6m
Hing Lam Kam
Deputy MD & Executive Director27yrsHK$12.81m0.0028% HK$5.6m
Ka-shing Li
Senior Advisor1.83yrsno data28.4% HK$56.3b
Tak Chuen Ip
Deputy MD & Executive Director26.5yrsHK$12.52mno data
Kai Ming Lai
Deputy MD & Executive Director4.75yrsHK$68.91m0.00089% HK$1.8m
Edith Shih
Company Secretary & Executive Director3.17yrsHK$23.38m0.0050% HK$9.9m
Ka Keung Man
General Manager of Accounts Departmentno datano datano data
Hans Leung
Investor Relations Contactno datano datano data

4.8yrs

Average Tenure

67yo

Average Age

Experienced Management: 1's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tzar Kuoi Li
Chairman & Group Co-MDno dataHK$79.02m0.075% HK$149.1m
Kin Ning Fok
Group Co-MD & Executive Director34.25yrsHK$226.29m0.16% HK$309.3m
Frank Sixt
Group Finance Director28.83yrsHK$72.06m0.0043% HK$8.6m
Hing Lam Kam
Deputy MD & Executive Director27yrsHK$12.81m0.0028% HK$5.6m
Tak Chuen Ip
Deputy MD & Executive Director26.5yrsHK$12.52mno data
Kai Ming Lai
Deputy MD & Executive Director4.75yrsHK$68.91m0.00089% HK$1.8m
Edith Shih
Company Secretary & Executive Director3.17yrsHK$23.38m0.0050% HK$9.9m
George Magnus
Non-Executive Director40.17yrsHK$220.00k0.024% HK$48.2m
Chung Hin Wong
Independent Non-Executive Director4.75yrsHK$410.00kno data
Yick-Ming Wong
Independent Non-Executive Director19.17yrsHK$280.00kno data

22.8yrs

Average Tenure

67yo

Average Age

Experienced Board: 1's board of directors are seasoned and experienced ( 22.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$198.404b
  • Shares outstanding: 3.86b
  • Website: https://www.ckh.com.hk

Number of Employees


Location

  • CK Hutchison Holdings Limited
  • Cheung Kong Center
  • 48th Floor
  • Hong Kong
  • 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, develops, and operates ports, which operate 288 berths in 51 ports spanning 26 countries throughout Asia, the Middle East, Africa, Europe, the Americas, and Australasia; and provides logistics and transportation-related services, such as cruise ship terminals, airport operations, distribution centers, rail services, and ship repair facilities. It also operates a network of approximately 15,000 retail stores that offer health and beauty products, food and fine wines, consumer electronics, and electrical appliances in Asia and Europe, as well as operates supermarkets; and manufactures and distributes bottled water and beverages under the Watsons Water and Mr. Juicy brands in Hong Kong and Mainland China. In addition, the company invests in energy infrastructure, transportation infrastructure, water infrastructure, waste management, waste-to-energy, household infrastructure, and other infrastructure related businesses primarily in Hong Kong, Mainland China, the United Kingdom, Continental Europe, Australia, New Zealand, Canada, the United States, and the Asia Pacific. Further, it provides mobile telecommunications and data services. Additionally, it researches, develops, manufactures, and sells pharmaceuticals and healthcare products; researches, develops, manufactures, commercializes, markets, and sells nutraceuticals and agriculture-related products; provides marine construction and ship repair yard, water and sewerage, gas distribution, and aircraft maintenance services; and leases rolling stocks. CK Hutchison Holdings Limited was incorporated in 2014 and is based in Hong Kong, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 13:28
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.