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Retail Trade

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 Services; Retail; Infrastructure; Husky Energy and Telecommunications. The company was founded on December 12, 2014 and is headquartered in Hong Kong.

Financial Highlights

Dec 2019 HKDUSD
Revenue299,021M38,163.80M
Gross Profit73,186M9,340.66M
Operating income52,208M6,663.26M
Income before tax44,869M5,726.59M
Net income39,830M5,083.47M
EBITDA90,337M11,529.63M
Diluted EPS10.321.31
Dividends Per Share3.170.40
Total Assets1,210.97B155,416.72M
Total liabilities626,423M80,395.15M
Total equity464,285M59,586.36M
Operating cash flow68,872M8,790.07M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 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 2015Dec 2016Dec 2017Dec 2018Dec 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
PER7.19
ROA3.26%
ROE8.74%
Operating margin17.45%
Profit margin13.32%

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. (2.0%)
  • BlackRock Fund Advisors (1.4%)
  • Norges Bank Investment Management (1.0%)
  • Hang Seng Investment Management Ltd. (0.7%)
  • State Street Global Advisors Asia Ltd. (0.7%)
  • First State Investments (Hong Kong) Ltd. (0.5%)
  • T. Rowe Price International Ltd. (0.5%)
  • Baillie Gifford & Co. (0.4%)
  • Eastspring Investments (Singapore) 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

Related Companies

  • CK Hutchison Holdings Ltd. /European Wireless Tower Business/
  • PARKnSHOP (HK) Ltd.
  • NAWAH for Ports Management LLC
  • Wuhan Watsons Personal Goods Store Co., Ltd.
  • Star Classic Investments Ltd.
  • Hutchison Port Investments Ltd.
  • ECT Delta Terminal BV
  • CK Hutchison International (20) Ltd.
  • Hutchison Global Enabling Services Ltd.
  • CK Hutchison International (19) (II) Ltd.
  • CK Hutchison Group Telecom Holdings Ltd.
  • Eversholt UK Rails (Holding) Ltd.
  • CKI Gas Infrastructure Ltd.
  • CKH Gas Infrastructure Ltd.
  • CK Hutchison International (19) Ltd.
  • Longliv Ventures
  • Vermillion Aviation (Eight) Ltd.
  • Crest Apex Ltd.
  • Karachi International Container Terminal Ltd.
  • CK Hutchison Europe Finance (18) Ltd.
  • CK Hutchison International (17) II Ltd.
  • CK Hutchison Capital Securities (17) Ltd.
  • CK Hutchison International (17) Ltd.
  • Wind Tre SpA
  • CK Capital Investment Ltd.
  • Casaurina Investments Ltd.
  • CK Hutchison International (16) Ltd.
  • CK Hutchison Finance (16) (II) Ltd.
  • Hutchison Finance (16) Ltd.
  • CK Hutchison Finance (16) Ltd.

Competitors

  • CK Infrastructure Holdings Limited
  • Robinsons Retail Holdings, Inc.
  • Telekom Austria AG
  • PT Telekomunikasi 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
Last Updated on 28 Oct, 2020

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