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

3.3%

SEHK:1

3.3%

HK Industrials

2.5%

HK Market


1 Year Return

-20.2%

SEHK:1

-14.0%

HK Industrials

-3.9%

HK Market

1 underperformed the Industrials industry which returned -14% over the past year.

1 underperformed the Market in Hong Kong which returned -3.9% over the past year.


Share holder returns

1IndustryMarket
7 Day3.3%3.3%2.5%
30 Day7.1%8.8%6.9%
90 Day-3.5%-3.1%0.8%
1 Year-16.7%-20.2%-10.2%-14.0%-0.4%-3.9%
3 Year-19.4%-27.1%-6.8%-16.2%19.6%7.6%
5 Year7.8%-46.9%0.6%-30.8%17.7%-1.7%

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 based on future cash flows and its price relative to the stock market?

7.14x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

CK Hutchison Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

CK Hutchison Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

CK Hutchison Holdings is overvalued based on earnings compared to the HK Industrials industry average.

CK Hutchison Holdings is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

CK Hutchison Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

CK Hutchison Holdings is good value based on assets compared to the HK Industrials industry average.


Next Steps

Future Growth

How is CK Hutchison Holdings expected 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 Estimates


Future Annual Growth Analysis

CK Hutchison Holdings's revenue is expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).

CK Hutchison Holdings's earnings are expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

CK Hutchison Holdings's revenue growth is positive but not above the Hong Kong market average.

CK Hutchison Holdings's earnings growth is positive but not above the Hong Kong market average.

CK Hutchison Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

CK Hutchison Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

CK Hutchison Holdings's year on year earnings growth rate has been positive over the past 5 years.

CK Hutchison Holdings's 1-year earnings growth exceeds its 5-year average (5.7% vs 3.8%)

CK Hutchison Holdings's earnings growth has exceeded the HK Industrials industry average in the past year (5.7% vs 5.1%).


Return on Equity

CK Hutchison Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

CK Hutchison Holdings used its assets more efficiently than the HK Industrials industry average last year based on Return on Assets.


Return on Capital Employed

CK Hutchison Holdings has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is CK Hutchison Holdings's financial position?


Financial Position Analysis

CK Hutchison Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

CK Hutchison Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

CK Hutchison Holdings's level of debt (59.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (10.1% vs 59.5% today).

Debt is not well covered by operating cash flow (17.7%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is 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?

4.73%

Expected Dividend Yield


Dividend Yield and Payments Analysis

CK Hutchison Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

CK Hutchison Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.06%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).


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$236,540,000

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

Victor's remuneration is higher than average for companies of similar size in Hong Kong.

Victor's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

4.3yrs

Average Tenure

67yo

Average Age

The tenure for the CK Hutchison Holdings management team is about average.


Board Age and Tenure

22.3yrs

Average Tenure

67yo

Average Age

The average tenure for the CK Hutchison Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by CK Hutchison Holdings individual insiders 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
SellHK$5,756,01703 Oct 18
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares63,724
Max PriceHK$90.33

Ownership Breakdown


Management Team

  • Edith Shih (67yo)

    Company Secretary & Executive Director

    • Tenure: 2.7yrs
    • Compensation: HK$69.70m
  • Frank Sixt (67yo)

    Group Finance Director

    • Tenure: 28.3yrs
    • Compensation: HK$215.74m
  • Dominic Lai (65yo)

    Deputy MD & Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$137.60m
  • Ka-shing Li (91yo)

    Senior Advisor

    • Tenure: 1.3yrs
  • Victor Li (55yo)

    Chairman & Group Co-MD

    • Tenure: 0yrs
    • Compensation: HK$236.54m
  • Hing Lam Kam (73yo)

    Deputy MD & Executive Director

    • Tenure: 26.6yrs
    • Compensation: HK$37.99m
  • Canning Fok (68yo)

    Group Co-MD & Executive Director

    • Tenure: 33.8yrs
    • Compensation: HK$678.43m
  • Edmond Ip (67yo)

    Deputy MD & Executive Director

    • Tenure: 26yrs
    • Compensation: HK$37.12m
  • 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: 2.7yrs
    • Compensation: HK$69.70m
  • George Magnus (84yo)

    Non-Executive Director

    • Tenure: 39.7yrs
    • Compensation: HK$220.00k
  • Frank Sixt (67yo)

    Group Finance Director

    • Tenure: 28.3yrs
    • Compensation: HK$215.74m
  • Dominic Lai (65yo)

    Deputy MD & Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$137.60m
  • Chung Hin Wong (86yo)

    Independent Non-Executive Director

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

    Independent Non-Executive Director

    • Tenure: 18.7yrs
    • Compensation: HK$280.00k
  • Victor Li (55yo)

    Chairman & Group Co-MD

    • Tenure: 0yrs
    • Compensation: HK$236.54m
  • Hing Lam Kam (73yo)

    Deputy MD & Executive Director

    • Tenure: 26.6yrs
    • Compensation: HK$37.99m
  • Canning Fok (68yo)

    Group Co-MD & Executive Director

    • Tenure: 33.8yrs
    • Compensation: HK$678.43m
  • Edmond Ip (67yo)

    Deputy MD & Executive Director

    • Tenure: 26yrs
    • Compensation: HK$37.12m

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$280.541b
  • 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 Analysis2019/09/15 12:56
End of Day Share Price2019/09/13 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.