CK Hutchison Holdings Ltd.

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

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 Service; Retail; Infrastructure; Telecommunications; and Finance & Investments and Others. The company was founded on December 12, 2014 and is headquartered in Hong Kong.

Financial Highlights

Dec 2022	HKD	USD
Revenue	262,497M	33,522.42M
Gross Profit	45,258M	5,779.71M
Operating income	25,637M	3,273.99M
Income before tax	32,689M	4,174.57M
Net income	36,680M	4,684.25M
EBITDA	65,425M	8,355.16M
Diluted EPS	9.56	1.22
Dividends Per Share	2.92	0.37
Total Assets	1,148.43B	147,142.13M
Total liabilities	505,689M	64,790.80M
Total equity	523,513M	67,074.48M
Operating cash flow	56,398M	7,202.35M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	277,129M	299,021M	266,396M	280,847M	262,497M
Gross Profit	95,648M	73,186M	53,229M	57,228M	45,258M
Operating income	45,179M	52,208M	35,151M	32,680M	25,637M
Income before tax	49,198M	44,869M	55,274M	30,591M	32,689M
Net income	39,000M	39,830M	29,143M	33,484M	36,680M
EBITDA	64,494M	90,337M	76,809M	77,936M	65,425M
Diluted EPS	10.11	10.32	7.55	8.70	9.56
Dividends Per Share	3.17	3.17	2.31	2.66	2.92
Total Assets	1,232.24B	1,210.97B	1,254.59B	1,213.52B	1,148.43B
Total liabilities	653,747M	626,423M	636,948M	581,685M	505,689M
Total equity	446,151M	464,285M	494,296M	513,152M	523,513M
Operating cash flow	54,728M	68,872M	72,689M	51,693M	56,398M

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	35,359.15M	38,163.80M	34,347.10M	36,131.85M	33,522.42M
Gross Profit	12,203.82M	9,340.66M	6,862.94M	7,362.56M	5,779.71M
Operating income	5,764.43M	6,663.26M	4,532.10M	4,204.38M	3,273.99M
Income before tax	6,277.22M	5,726.59M	7,126.61M	3,935.62M	4,174.57M
Net income	4,976.04M	5,083.47M	3,757.48M	4,307.82M	4,684.25M
EBITDA	8,228.85M	11,529.63M	9,903.17M	10,026.71M	8,355.16M
Diluted EPS	1.29	1.31	0.97	1.11	1.22
Dividends Per Share	0.40	0.40	0.29	0.34	0.37
Total Assets	157,387.78M	155,416.72M	161,802.98M	155,654.09M	147,142.13M
Total liabilities	83,499.52M	80,395.15M	82,146.03M	74,610.39M	64,790.80M
Total equity	56,984.42M	59,586.36M	63,748.46M	65,819.94M	67,074.48M
Operating cash flow	6,982.79M	8,790.07M	9,371.97M	6,650.46M	7,202.35M

Valuation Measures

Dec 2022
PER	4.89
ROA	3.10%
ROE	7.07%
Operating margin	9.76%
Profit margin	13.97%

Key executives

Chairman & Group Co-Managing Director: Tzar Kuoi Li
Group Co-Managing Director & Executive Director: Kin Ning Fok
Group Finance Director & Executive Director: Frank John Sixt
Executive Director & Deputy Managing Director: Tak Chuen Ip
Executive Director & Deputy Managing Director: Hing Lam Kam

Shareholders

LI FAMILY (30.3%)
The Vanguard Group, Inc. (1.7%)
BlackRock Fund Advisors (1.5%)
First Sentier Investors (Hong Kong) Ltd. (1.2%)
Norges Bank Investment Management (1.1%)
State Street Global Advisors Asia Ltd. (0.7%)
Mackenzie Financial Corp. (0.5%)
Baillie Gifford & Co. (0.5%)
Geode Capital Management LLC (0.4%)
Hermes Investment Management Ltd. (0.4%)

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

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Last Updated on 22 Mar, 2023