CK Hutchison Holdings Ltd.
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Company Background
CK Hutchison Holdings runs a broad range of businesses, from telecommunications and retail to energy and infrastructure. The Hong Kong conglomerate operates in more than 50 countries. Chairman Li Ka-shing has long been known as Asia's richest man.
The company was created in 2015 through a merger of two holding entities -- Cheung Kong (Holdings) and Hutchison Whampoa. As part of the reorganization, CK Hutchison spun off real estate businesses in Hong Kong and China into a new company, Cheung Kong Property Holdings.
Major CK Hutchison group members include 3 Group Europe, a mobile communications company; A.S. Watson Group, a retailer that runs around 10,000 drugstores, supermarkets and other shops in Asia and Europe; Husky Energy, an energy developer based in Canada; and Hutchison Port Holdings, which controls more than 50 container terminals worldwide.
In 2015, CK Hutchison acquired O2 UK, Britain's second-largest mobile service provider. The conglomerate actively pursues acquisitions, mainly targeting regulated industries that generate stable cash flow.
The group's history goes back to the 1950s, when Li established Cheung Kong Industries. The company started out manufacturing plastic flowers. Li developed it into a real estate investment business, and in 1979, Cheung Kong acquired British trading house Hutchison Whampoa.
The chairman has maintained close relationships with successive generations of high-ranking Chinese Communist Party officials. Li's first-born son, Deputy Chairman Victor Li Tzar-kuoi, appears almost certain to succeed him.
Business Summary
Financial Highlights
| Dec 2019 | HKD | USD |
| Revenue | 299,021M | 38,163.80M |
| Gross Profit | 73,186M | 9,340.66M |
| Operating income | 52,208M | 6,663.26M |
| Income before tax | 44,869M | 5,726.59M |
| Net income | 39,830M | 5,083.47M |
| EBITDA | 90,337M | 11,529.63M |
| Diluted EPS | 10.32 | 1.31 |
| Dividends Per Share | 3.17 | 0.40 |
| Total Assets | 1,210.97B | 155,416.72M |
| Total liabilities | 626,423M | 80,395.15M |
| Total equity | 464,285M | 59,586.36M |
| Operating cash flow | 68,872M | 8,790.07M |
| Currency in HKD | Currency in USD |
Historical Data
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | |
| Revenue | 166,760M | 259,842M | 248,515M | 277,129M | 299,021M |
| Gross Profit | 56,357M | 90,339M | 80,393M | 95,648M | 73,186M |
| Operating income | 56,357M | 36,915M | 32,748M | 45,179M | 52,208M |
| Income before tax | 33,629M | 46,463M | 46,418M | 49,198M | 44,869M |
| Net income | 38,189M | 33,008M | 35,100M | 39,000M | 39,830M |
| EBITDA | 65,786M | 52,513M | 49,425M | 64,494M | 90,337M |
| Diluted EPS | 14.23 | 8.55 | 9.10 | 10.11 | 10.32 |
| Dividends Per Share | 2.55 | 2.68 | 2.85 | 3.17 | 3.17 |
| Total Assets | 1,032.94B | 1,013.46B | 1,100.25B | 1,232.24B | 1,210.97B |
| Total liabilities | 518,986M | 499,785M | 538,189M | 653,747M | 626,423M |
| Total equity | 393,435M | 394,169M | 430,056M | 446,151M | 464,285M |
| Operating cash flow | 31,250M | 36,128M | 52,404M | 54,728M | 68,872M |
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | |
| Revenue | 21,510.27M | 33,474.19M | 31,890.26M | 35,359.15M | 38,163.80M |
| Gross Profit | 7,269.45M | 11,637.93M | 10,316.29M | 12,203.82M | 9,340.66M |
| Operating income | 7,269.45M | 4,755.58M | 4,202.33M | 5,764.43M | 6,663.26M |
| Income before tax | 4,337.78M | 5,985.60M | 5,956.51M | 6,277.22M | 5,726.59M |
| Net income | 4,925.97M | 4,252.26M | 4,504.14M | 4,976.04M | 5,083.47M |
| EBITDA | 8,485.69M | 6,764.99M | 6,342.37M | 8,228.85M | 11,529.63M |
| Diluted EPS | 1.83 | 1.10 | 1.16 | 1.29 | 1.31 |
| Dividends Per Share | 0.32 | 0.34 | 0.36 | 0.40 | 0.40 |
| Total Assets | 133,280.50M | 130,716.54M | 140,746.16M | 157,387.78M | 155,416.72M |
| Total liabilities | 66,964.63M | 64,462.18M | 68,845.89M | 83,499.52M | 80,395.15M |
| Total equity | 50,764.82M | 50,839.85M | 55,013.36M | 56,984.42M | 59,586.36M |
| Operating cash flow | 4,030.91M | 4,654.19M | 6,724.65M | 6,982.79M | 8,790.07M |
Valuation Measures
| Dec 2019 | |
| PER | 7.19 |
| ROA | 3.26% |
| ROE | 8.74% |
| Operating margin | 17.45% |
| Profit margin | 13.32% |
Key executives
- Chairman & Group Co-Managing Director: Tzar Kuoi Li
- Group Co-Managing Director & Executive Director: Kin Ning Fok
- Executive Director & Group Finance Director: Frank John Sixt
- Executive Director & Deputy Managing Director: Tak Chuen Ip
- Executive Director & Deputy Managing Director: Hing Lam Kam
Shareholders
- LI FAMILY (30.0%)
- The Vanguard Group, Inc. (1.8%)
- BlackRock Fund Advisors (1.5%)
- Norges Bank Investment Management (1.0%)
- State Street Global Advisors Asia Ltd. (0.6%)
- Hang Seng Investment Management Ltd. (0.6%)
- First Sentier Investors (Hong Kong) Ltd. (0.5%)
- T. Rowe Price International Ltd. (0.5%)
- Southeastern Asset Management, Inc. (0.5%)
- Baillie Gifford & Co. (0.5%)
Contact Details
- Website:http://www.ckh.com.hk
- Address: Cheung Kong Center, 2 Queen's Road Central, Hong Kong, Hong Kong
- Phone: +852.2128.1188
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Competitors
- CK Infrastructure Holdings Limited
- Robinsons Retail Holdings, Inc.
- Telekom Austria AG
- PT Telkom Indonesia (Persero) Tbk Class B
- HKT Trust and HKT Ltd
- PT Sumber Alfaria Trijaya
- Grupo TMM SAB Class A
- Nippon Yusen Kabushiki Kaisha
- Seven & I Holdings Co., Ltd.
- International Container Terminal Services, Inc.
- United Utilities Group PLC
- Hong Kong Television Network Ltd.
- Infrastrutture Wireless Italiane S.p.A.
- Pacific Century Premium Developments Limited
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Last Updated on 19 Jan, 2021
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