1 HK

CK Hutchison Holdings Limited

Industrial/Transportation, Event Driven/Special Sit


Presented:05/23/2024
Price:HK$39.82
Cap:$19.67B
Current Price:HK$42.00
Cap:$20.74B

Presented

Date05/23/2024
PriceHK$39.82
Market Cap$19.67B
Ent Value$64.81B
P/E Ratio6.78x
Book ValueHK$142.04
Div Yield6.83%
Shares O/S3,830.04M
Ave Daily Vol6,854,054
Short IntN/A

Current

PriceHK$42.00
Market Cap$20.74B
CK Hutchison Holdings Ltd. is an investment holding company, which engages in the development, innovation, operation and investment in different business sectors. It operates through the following segments: Ports and Related Services, Retail, Infrastructure, Telecommunications, and Finance and Investments and Others. The Ports and Related Services segment operates container terminals. The Retail segment includes the A.S. Watson group of companies. The Infrastructure segment includes six infrastructure investments co-owned with CKI. The Telecommunications segment focuses on the CK Hutchison Group Telecom Holdings, Hutchison Telecommunications Hong Kong Holdings, and Hutchison Asia Telecommunications. The company was founded in 1828 and is headquartered in Hong Kong.

Publicly traded companies mentioned herein: Cenovus Energy Inc (CVE), CK Hutchison Holdings Limited (0001 HK), CK Infrastructure Holdings Limited (1038 HK), Vodafone Group Plc (VOD)

Highlights

The presenter is long share of CK Hutchison Holdings Limited (0001 HK), a multinational conglomerate with a $20B market capitalization. The company operates in diverse segments including telecom services, infrastructure, oil & gas (17% stake in Cenovus Energy), health & beauty (A.S. Watson Group), and is the largest port operator in the world. The company has derated over the last several years and is now trading at a 61% discount to NAV or 5.5x GAAP earnings, compared to historically trading closer to a 30% discount. However, the presenter believes the market has been overly negative on the company. The conglomerate owns high-quality assets, its telecom business has been turning around, and there have been positive changes within management.

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