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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 2018 HKDUSD
Revenue277,129M35,359.15M
Gross Profit95,648M12,203.82M
Operating income45,179M5,764.43M
Income before tax49,198M6,277.22M
Net income39,000M4,976.04M
EBITDA64,494M8,228.85M
Diluted EPS10.111.29
Dividends Per Share3.170.40
Total Assets1,232.24B157,387.78M
Total liabilities653,747M83,499.52M
Total equity446,151M56,984.42M
Operating cash flow54,728M6,982.79M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 26,384M 166,760M 259,842M 248,515M 277,129M
Gross Profit 11,496M 56,357M 90,339M 80,393M 95,648M
Operating income 10,658M 56,357M 36,915M 32,748M 45,179M
Income before tax 17,591M 33,629M 46,463M 46,418M 49,198M
Net income 53,869M 38,189M 33,008M 35,100M 39,000M
EBITDA 11,051M 65,786M 52,513M 49,425M 64,494M
Diluted EPS 23.26 14.23 8.55 9.10 10.11
Dividends Per Share 3.65 2.55 2.68 2.85 3.17
Total Assets 457,941M 1,032.94B 1,013.46B 1,100.25B 1,232.24B
Total liabilities 60,939M 518,986M 499,785M 538,189M 653,747M
Total equity 394,145M 393,435M 394,169M 430,056M 446,151M
Operating cash flow 12,551M 31,250M 36,128M 52,404M 54,728M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 3,402.33M 21,510.27M 33,474.19M 31,890.26M 35,359.15M
Gross Profit 1,482.45M 7,269.45M 11,637.93M 10,316.29M 12,203.82M
Operating income 1,374.39M 7,269.45M 4,755.58M 4,202.33M 5,764.43M
Income before tax 2,268.43M 4,337.78M 5,985.60M 5,956.51M 6,277.22M
Net income 6,946.64M 4,925.97M 4,252.26M 4,504.14M 4,976.04M
EBITDA 1,425.07M 8,485.69M 6,764.99M 6,342.37M 8,228.85M
Diluted EPS 2.99 1.83 1.10 1.16 1.29
Dividends Per Share 0.47 0.32 0.34 0.36 0.40
Total Assets 59,052.20M 133,280.50M 130,716.54M 140,746.16M 157,387.78M
Total liabilities 7,858.17M 66,964.63M 64,462.18M 68,845.89M 83,499.52M
Total equity 50,825.61M 50,764.82M 50,839.85M 55,013.36M 56,984.42M
Operating cash flow 1,618.50M 4,030.91M 4,654.19M 6,724.65M 6,982.79M

Valuation Measures

Dec 2018
PER7.43
ROA3.34%
ROE8.90%
Operating margin16.30%
Profit margin14.07%

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. (1.9%)
  • Templeton Global Advisors Ltd. (1.4%)
  • BlackRock Fund Advisors (1.2%)
  • Norges Bank Investment Management (1.0%)
  • Southeastern Asset Management, Inc. (0.6%)
  • State Street Global Advisors Asia Ltd. (0.6%)
  • Invesco Asset Management Ltd. (0.5%)
  • First State Investments (Hong Kong) Ltd. (0.5%)
  • 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

  • Hutchison Global Enabling Services Ltd.
  • CK Hutchison International (19) (II) Ltd.
  • CK Hutchison Group Telecom Holdings Ltd.
  • Hutchison 3G Ireland Holdings Ltd.
  • Eversholt UK Rails (Holding) Ltd.
  • CKI Gas Infrastructure Ltd.
  • CKH Gas Infrastructure Ltd.
  • CKI UK Water 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.
  • 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.
  • Hutchison Travel Ltd.
  • Hutchison Whampoa (China) Commerce Ltd.
  • CK Hutchison Global Investments Ltd.
  • Fumark Investment Ltd.
  • Hutchison Logistics (Shanghai) Ltd.
  • Hutchison Telecommunications Hong Kong Holdings Limited
  • CK Infrastructure Holdings Limited

Competitors

  • CK Infrastructure Holdings Limited
  • Robinsons Retail Holdings, Inc.
  • HKT Trust and HKT Ltd
  • PT Telekomunikasi Indonesia (Persero) Tbk. Class B
  • Telekom Austria AG
  • Swisscom AG
  • PT Sumber Alfaria Trijaya
  • Sunrise Communications Group Ltd.
  • Nippon Yusen Kabushiki Kaisha
  • DP World PLC
  • United Utilities Group PLC
  • Hong Kong Television Network Ltd.
  • A.P. Moller - Maersk A/S Class B
  • Allscripts Healthcare Solutions, Inc.
  • Azrieli Group Ltd.
  • Jumei International Holding Ltd Sponsored ADR Class A
  • Pacific Century Premium Developments Limited
Last Updated on 18 Oct, 2019

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