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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 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 2021 HKDUSD
Revenue280,847M36,131.85M
Gross Profit57,228M7,362.56M
Operating income32,680M4,204.38M
Income before tax30,591M3,935.62M
Net income33,484M4,307.82M
EBITDA77,936M10,026.71M
Diluted EPS8.701.11
Dividends Per Share2.660.34
Total Assets1,213.52B155,654.09M
Total liabilities581,685M74,610.39M
Total equity513,152M65,819.94M
Operating cash flow51,693M6,650.46M
Currency in HKDCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 248,515M 277,129M 299,021M 266,396M 280,847M
Gross Profit 80,393M 95,648M 73,186M 53,229M 57,228M
Operating income 32,748M 45,179M 52,208M 35,151M 32,680M
Income before tax 46,418M 49,198M 44,869M 55,274M 30,591M
Net income 35,100M 39,000M 39,830M 29,143M 33,484M
EBITDA 49,425M 64,494M 90,337M 76,809M 77,936M
Diluted EPS 9.10 10.11 10.32 7.55 8.70
Dividends Per Share 2.85 3.17 3.17 2.31 2.66
Total Assets 1,100.25B 1,232.24B 1,210.97B 1,254.59B 1,213.52B
Total liabilities 538,189M 653,747M 626,423M 636,948M 581,685M
Total equity 430,056M 446,151M 464,285M 494,296M 513,152M
Operating cash flow 52,404M 54,728M 68,872M 72,689M 51,693M
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 31,890.26M 35,359.15M 38,163.80M 34,347.10M 36,131.85M
Gross Profit 10,316.29M 12,203.82M 9,340.66M 6,862.94M 7,362.56M
Operating income 4,202.33M 5,764.43M 6,663.26M 4,532.10M 4,204.38M
Income before tax 5,956.51M 6,277.22M 5,726.59M 7,126.61M 3,935.62M
Net income 4,504.14M 4,976.04M 5,083.47M 3,757.48M 4,307.82M
EBITDA 6,342.37M 8,228.85M 11,529.63M 9,903.17M 10,026.71M
Diluted EPS 1.16 1.29 1.31 0.97 1.11
Dividends Per Share 0.36 0.40 0.40 0.29 0.34
Total Assets 140,746.16M 157,387.78M 155,416.72M 161,802.98M 155,654.09M
Total liabilities 68,845.89M 83,499.52M 80,395.15M 82,146.03M 74,610.39M
Total equity 55,013.36M 56,984.42M 59,586.36M 63,748.46M 65,819.94M
Operating cash flow 6,724.65M 6,982.79M 8,790.07M 9,371.97M 6,650.46M

Valuation Measures

Dec 2021
PER5.77
ROA2.71%
ROE6.64%
Operating margin11.63%
Profit margin11.92%

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 (30.2%)
  • The Vanguard Group, Inc. (1.7%)
  • BlackRock Fund Advisors (1.5%)
  • Norges Bank Investment Management (1.0%)
  • First Sentier Investors (Hong Kong) Ltd. (0.7%)
  • State Street Global Advisors Asia Ltd. (0.6%)
  • Geode Capital Management LLC (0.5%)
  • Baillie Gifford & Co. (0.5%)
  • Mackenzie Financial Corp. (0.5%)
  • Southeastern Asset Management, Inc. (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 International (22) Ltd.
  • HET Investments SA
  • CK Hutchison Europe Finance (21) Ltd.
  • CK Hutchison International (21) Ltd.
  • 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 LP
  • Vermillion Aviation (Eight) Ltd.
  • CK Hutchison Capital Securities (Europe) 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.

Competitors

  • CK Infrastructure Holdings Limited
  • Power Assets Holdings Limited
  • Robinsons Retail Holdings, Inc.
  • PT Telkom Indonesia (Persero) Tbk Class B
  • HKT Trust and HKT Ltd
  • Seven & I Holdings Co., Ltd.
  • PT Sumber Alfaria Trijaya
  • Grupo TMM SAB Class A
  • Swisscom AG
  • International Container Terminal Services, Inc.
  • Pacific Century Premium Developments Limited
  • CoAsia Electronics Corp.
Last Updated on 17 Aug, 2022

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