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CK Hutchison Holdings

SEHK:1
Snowflake Description

Proven track record average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1
SEHK
HK$287B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

CK Hutchison Holdings Limited, an investment holding company, operates in ports and related services, retail, infrastructure, energy, and telecommunications businesses worldwide. The last earnings update was 166 days ago. More info.


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1 Share Price and Events
7 Day Returns
0.2%
SEHK:1
-2.8%
HK Industrials
-3.4%
HK Market
1 Year Returns
-5.8%
SEHK:1
-10.5%
HK Industrials
-0.4%
HK Market
1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CK Hutchison Holdings (1) 0.2% -0.8% 3.4% -5.8% -20.4% -50%
HK Industrials -2.8% -2.7% -0.3% -10.5% -14.5% -33.9%
HK Market -3.4% -1.2% 3.7% -0.4% 8.2% -0.4%
1 Year Return vs Industry and Market
  • 1 outperformed the Industrials industry which returned -10.5% over the past year.
  • 1 underperformed the Market in Hong Kong which returned -0.4% over the past year.
Price Volatility
1
Industry
5yr Volatility vs Market

1 Value

 Is CK Hutchison Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CK Hutchison Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CK Hutchison Holdings.

SEHK:1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.3%
Perpetual Growth Rate 10-Year HK Government Bond Rate 1.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 1.6%
Equity Risk Premium S&P Global 6.1%
Industrials Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.895 (1 + (1- 25%) (151.37%))
1.61
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.61
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.55% + (1.61 * 6.07%)
11.33%

Discounted Cash Flow Calculation for SEHK:1 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for CK Hutchison Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SEHK:1 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 11.33%)
2020 52,499.50 Analyst x2 47,158.48
2021 44,479.00 Analyst x1 35,889.24
2022 39,944.99 Est @ -10.19% 28,951.84
2023 37,280.44 Est @ -6.67% 24,271.67
2024 35,713.04 Est @ -4.2% 20,885.75
2025 34,828.05 Est @ -2.48% 18,296.03
2026 34,385.86 Est @ -1.27% 16,226.03
2027 34,240.15 Est @ -0.42% 14,513.52
2028 34,297.80 Est @ 0.17% 13,058.94
2029 34,497.71 Est @ 0.58% 11,798.77
Present value of next 10 years cash flows HK$231,050.00
SEHK:1 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= HK$34,497.71 × (1 + 1.55%) ÷ (11.33% – 1.55%)
HK$358,362.98
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$358,362.98 ÷ (1 + 11.33%)10
HK$122,565.86
SEHK:1 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$231,050.00 + HK$122,565.86
HK$353,615.86
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$353,615.86 / 3,856.24
HK$91.7
SEHK:1 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$91.70
Current discount Discount to share price of HK$74.35
= -1 x (HK$74.35 - HK$91.70) / HK$91.70
18.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price CK Hutchison Holdings is available for.
Intrinsic value
19%
Share price is HK$74.35 vs Future cash flow value of HK$91.7
Current Discount Checks
For CK Hutchison Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • CK Hutchison Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • CK Hutchison Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CK Hutchison Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CK Hutchison Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in HKD HK$10.19
SEHK:1 Share Price ** SEHK (2020-01-24) in HKD HK$74.35
Hong Kong Industrials Industry PE Ratio Median Figure of 12 Publicly-Listed Industrials Companies 6.5x
Hong Kong Market PE Ratio Median Figure of 1,494 Publicly-Listed Companies 10.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CK Hutchison Holdings.

SEHK:1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1 Share Price ÷ EPS (both in HKD)

= 74.35 ÷ 10.19

7.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CK Hutchison Holdings is overvalued based on earnings compared to the HK Industrials industry average.
  • CK Hutchison Holdings is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does CK Hutchison Holdings's expected growth come at a high price?
Raw Data
SEHK:1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.3x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
1.1%per year
Hong Kong Industrials Industry PEG Ratio Median Figure of 6 Publicly-Listed Industrials Companies 1.16x
Hong Kong Market PEG Ratio Median Figure of 483 Publicly-Listed Companies 0.78x

*Line of best fit is calculated by linear regression .

SEHK:1 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.3x ÷ 1.1%

6.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CK Hutchison Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on CK Hutchison Holdings's assets?
Raw Data
SEHK:1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in HKD HK$117.73
SEHK:1 Share Price * SEHK (2020-01-24) in HKD HK$74.35
Hong Kong Industrials Industry PB Ratio Median Figure of 13 Publicly-Listed Industrials Companies 0.63x
Hong Kong Market PB Ratio Median Figure of 2,240 Publicly-Listed Companies 0.84x
SEHK:1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1 Share Price ÷ Book Value per Share (both in HKD)

= 74.35 ÷ 117.73

0.63x

* Primary Listing of CK Hutchison Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CK Hutchison Holdings is good value based on assets compared to the HK Industrials industry average.
X
Value checks
We assess CK Hutchison Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Industrials industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Industrials industry average (and greater than 0)? (1 check)
  5. CK Hutchison Holdings has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

1 Future Performance

 How is CK Hutchison Holdings expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CK Hutchison Holdings expected to grow at an attractive rate?
  • CK Hutchison Holdings's earnings growth is positive but not above the low risk savings rate of 1.6%.
Growth vs Market Checks
  • CK Hutchison Holdings's earnings growth is positive but not above the Hong Kong market average.
  • CK Hutchison Holdings's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:1 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 1.1%
SEHK:1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 9.8%
Hong Kong Industrials Industry Earnings Growth Rate Market Cap Weighted Average 2.1%
Hong Kong Industrials Industry Revenue Growth Rate Market Cap Weighted Average 5%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 483,422 87,426 39,767 2
2020-12-31 473,352 85,678 40,824 3
2020-01-28
2019-12-31 460,287 64,582 39,050 3
SEHK:1 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2019-06-30 293,765 61,020 39,304
2019-03-31 285,447 58,377 39,152
2018-12-31 277,129 55,734 39,000
2018-09-30 269,437 54,245 38,101
2018-06-30 261,744 52,755 37,201
2018-03-31 255,130 53,176 36,151
2017-12-31 248,515 53,596 35,100
2017-09-30 248,800 48,631 34,553
2017-06-30 249,085 43,666 34,006
2017-03-31 254,464 42,002 33,507
2016-12-31 259,842 40,338 33,008
2016-09-30 264,534 43,055 32,321

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CK Hutchison Holdings's earnings are expected to grow by 1.1% yearly, however this is not considered high growth (20% yearly).
  • CK Hutchison Holdings's revenue is expected to grow by 9.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from CK Hutchison Holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 10.67 11.68 8.30 6.00
2020-12-31 10.79 11.76 10.16 9.00
2020-01-28
2019-12-31 10.25 10.85 9.81 8.00
SEHK:1 Past Financials Data
Date (Data in HKD Millions) EPS *
2019-06-30 10.19
2019-03-31 10.15
2018-12-31 10.11
2018-09-30 9.88
2018-06-30 9.64
2018-03-31 9.37
2017-12-31 9.10
2017-09-30 8.96
2017-06-30 8.81
2017-03-31 8.68
2016-12-31 8.55
2016-09-30 8.37

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • CK Hutchison Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess CK Hutchison Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CK Hutchison Holdings has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

1 Past Performance

  How has CK Hutchison Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CK Hutchison Holdings's growth in the last year to its industry (Industrials).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CK Hutchison Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • CK Hutchison Holdings's 1-year earnings growth exceeds its 5-year average (5.7% vs 3.8%)
  • CK Hutchison Holdings's earnings growth has exceeded the HK Industrials industry average in the past year (5.7% vs 3.7%).
Earnings and Revenue History
CK Hutchison Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CK Hutchison Holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 293,765.00 39,304.00 48,863.00
2019-03-31 285,447.00 39,152.00 50,944.50
2018-12-31 277,129.00 39,000.00 53,026.00
2018-09-30 269,436.50 38,100.50 52,568.00
2018-06-30 261,744.00 37,201.00 62,109.00
2018-03-31 255,129.50 36,150.50 56,327.00
2017-12-31 248,515.00 35,100.00 50,545.00
2017-09-30 248,800.00 34,553.00 50,343.50
2017-06-30 249,085.00 34,006.00 50,142.00
2017-03-31 254,463.50 33,507.00 51,260.00
2016-12-31 259,842.00 33,008.00 52,378.00
2016-09-30 264,534.00 32,320.50 52,945.00
2016-06-30 269,226.00 31,633.00 53,512.00
2016-03-31 217,993.00 34,911.00 43,121.50
2015-12-31 166,760.00 38,189.00 32,731.00
2015-09-30 115,272.00 53,992.00 19,518.00
2015-06-30 26,910.00 26,973.00 5,555.00
2015-03-31 14,236.00 22,958.50 3,272.50
2014-12-31 1,562.00 18,944.00 990.00
2014-09-30 13,535.00 40,634.00 1,319.50
2014-06-30 12,738.00 35,296.00 1,349.00
2014-03-31 17,109.00 35,278.00 1,479.00
2013-12-31 21,480.00 35,260.00 1,609.00
2013-09-30 19,426.50 32,655.00 1,607.00
2013-06-30 17,373.00 30,050.00 1,605.00
2013-03-31 19,376.00 31,043.00 1,606.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • CK Hutchison Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • CK Hutchison Holdings used its assets less efficiently than the HK Industrials industry average last year based on Return on Assets.
  • CK Hutchison Holdings has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess CK Hutchison Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Industrials industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CK Hutchison Holdings has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

1 Health

 How is CK Hutchison Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CK Hutchison Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • CK Hutchison Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • CK Hutchison Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of CK Hutchison Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CK Hutchison Holdings Company Filings, last reported 6 months ago.

SEHK:1 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 580,483.00 345,101.00 123,291.00
2019-03-31 580,483.00 345,101.00 123,291.00
2018-12-31 590,823.00 354,126.00 135,411.00
2018-09-30 590,823.00 354,126.00 135,411.00
2018-06-30 580,524.00 340,627.00 142,756.00
2018-03-31 580,524.00 340,627.00 142,756.00
2017-12-31 591,547.00 338,771.00 160,479.00
2017-09-30 591,547.00 338,771.00 160,479.00
2017-06-30 558,658.00 332,582.00 150,223.00
2017-03-31 558,658.00 332,582.00 150,223.00
2016-12-31 544,190.00 309,306.00 156,272.00
2016-09-30 544,190.00 309,306.00 156,272.00
2016-06-30 553,166.00 338,041.00 154,634.00
2016-03-31 553,166.00 338,041.00 154,634.00
2015-12-31 549,111.00 310,064.00 121,718.00
2015-09-30 549,111.00 310,064.00 121,718.00
2015-06-30 557,098.00 344,237.00 162,160.00
2015-03-31 557,098.00 344,237.00 162,160.00
2014-12-31 406,047.00 37,874.00 34,097.00
2014-09-30 406,047.00 37,874.00 34,813.00
2014-06-30 390,833.00 39,601.00 34,409.00
2014-03-31 390,833.00 39,601.00 34,409.00
2013-12-31 372,821.00 41,890.00 35,249.00
2013-09-30 372,821.00 41,890.00 35,249.00
2013-06-30 347,590.00 45,809.00 27,784.00
2013-03-31 347,590.00 45,809.00 27,784.00
  • CK Hutchison Holdings's level of debt (59.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (10.1% vs 59.5% today).
  • Debt is not well covered by operating cash flow (17.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4x coverage).
X
Financial health checks
We assess CK Hutchison Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CK Hutchison Holdings has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

1 Dividends

 What is CK Hutchison Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.26%
Current annual income from CK Hutchison Holdings dividends. Estimated to be 4.69% next year.
If you bought HK$2,000 of CK Hutchison Holdings shares you are expected to receive HK$85 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • CK Hutchison Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.22%).
  • CK Hutchison Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.18%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Hong Kong Industrials Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 4.1%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 962 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.2%
Hong Kong Top 25% Dividend Yield 75th Percentile 6.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 3.58 7.00
2020-12-31 3.42 10.00
2020-01-28
2019-12-31 3.27 9.00
SEHK:1 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-03-21 3.170 4.268
2018-08-02 2.940 3.571
2018-03-16 2.850 3.206
2017-08-03 2.725 2.730
2017-03-22 2.680 2.710
2016-08-11 2.585 2.720
2016-03-17 2.550 2.778
2015-04-29 3.654 3.391
2015-02-26 3.654 2.292
2014-04-07 3.480 2.524
2014-02-28 3.480 2.772
2013-04-08 3.160 2.739
2013-03-26 3.160 2.780
2012-03-29 3.160 2.915
2011-08-04 2.980 3.044
2011-03-29 2.950 2.497
2010-08-19 2.700 2.285
2010-03-30 2.700 2.864
2009-08-13 2.450 2.516
2009-03-26 2.450 2.849

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of CK Hutchison Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).
X
Income/ dividend checks
We assess CK Hutchison Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CK Hutchison Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CK Hutchison Holdings has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

1 Management

 What is the CEO of CK Hutchison Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Victor Li
COMPENSATION HK$79,020,000
AGE 55
CEO Bio

Mr. Li Tzar Kuoi, also known as Victor, B.Sc, M.Sc, LLD (Hon) serves as Non-Executive Director of Hongkong and Shanghai Banking Corporation Ltd. - New Zealand Branch. He had been Deputy Chairman of Cheung Kong Property Holdings Limited from February 2015 to May 10, 2018. Mr. Li has been the Managing Director of Cheung Kong (Holdings) Limited since 1999 and its Deputy Chairman since 1994. He serves as a Member of Management Board at Triluck Assets Limited. He was a Deputy Chairman of CK Hutchison Holdings Limited since January 9, 2015 and has been its Chairman of Board and Group Co-Managing Director since May 10, 2018 and June 3, 2015 respectively. He joined the Cheung Kong Group in 1985 and acted as Deputy Managing Director of Cheung Kong from 1993 to 1998. Mr. Li is the Founder of Trinity Time Investments Ltd. He is a co-owner at LVM Unity Limited. He has been the Chairman of CK Infrastructure Holdings Limited since May 29, 1996 and CK Life Sciences Int'l., (Holdings) Inc., since April 2002. He serves as a Co-Chairman of Husky Energy Inc. He has been Deputy Chairman of HK Electric Investments Limited since November 28, 2014. Mr. Li is also the Managing Director and Chairman of CK Asset Holdings Limited since February 2015 and May 10, 2018 respectively (formerly known as Cheung Kong Property Holdings Limited). Mr. Li serves as the Deputy Chairman and Director of Li Ka Shing Foundation Limited, Li Ka Shing (Overseas) Foundation and Li Ka Shing (Canada) Foundation. He has been a Deputy Chairman and Director of The Hongkong Electric Company Limited since November 28, 2014. He has been Deputy Chairman at Hutchison Whampoa Limited since March 31, 1999 and its Executive Director since 1995. Hei is also a director of certain substantial shareholders of the CK ASSET HOLDINGS LIMITED. He serves as a Director of HSBC. He has been a Non-Executive Director of HK Electric Investments Limited which is the trustee-manager of HK Electric Investments since November 28, 2014. He serves as a Non-Executive Director of The Hongkong and Shanghai Banking Corporation Limited and White Rain Enterprises Limited. He is a Non-executive Director of HK Electric Investments Manager Limited. He has been an Executive Director at CK ASSET HOLDINGS LIMITED since February 26, 2015; Hongkong Electric Holdings Ltd., since 1994. He had been a Director of CK Hutchison Holdings Limited since December 11, 2014 until June 2015 and serves as its Executive Director since June 2015. He has been Director of Cheung Kong (Holdings) Limited since March 16, 1989. He has been a Non-Independent Director at Husky Energy Inc., since August 25, 2000. He has been a Non-Executive Director of Power Assets Holdings Limited since January 29, 2014. He serves as a Director of Trueway International Limited, Tangiers Enterprises Limited, Gold Rainbow Int'l Limited, The Hongkong Electric Company, Limited and Gotak Limited. He served as a Director at CK ASSET HOLDINGS LIMITED since January 5, 2015 to February 26, 2015. He is a director of certain substantial shareholders of CK Infrastructure Holdings Limited within the meaning of Part XV of the Securities and Futures Ordinance (“SFO”). He is a director of certain companies controlled by certain substantial shareholders of CK Infrastructure Holdings Limited. Mr. Li served as an Executive Director of Power Assets Holdings Limited from May 20, 1994 to January 29, 2014. He has served as a Member of the 9th Chinese People's Political Consultative Conference (“CPPCC“). He is also a Member of the Chief Executive’s Council of Advisers on Innovation and Strategic development of the Hong Kong Special Administrative Region. He is also Vice Chairman of the Hong Kong General Chamber of Commerce. He is the Honorary Consul of Barbados in Hong Kong. He previously held directorship in Star River Investment Limited until June 4, 2005. He is also a member of the Commission on Strategic Development and the Business Advisory Group for the Hong Kong SAR. He holds a Bachelor of Science Degree in Civil Engineering and a Master’s of Science degree in Civil Engineering /Structural Engineering, both from the Stanford University in 1987. Mr. Li obtained an honorary Degree, Doctor of Laws, honoris causa (LL.D) from The University of Western Ontario in 2009.

CEO Compensation
  • Victor's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Victor's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the CK Hutchison Holdings management team in years:

4.6
Average Tenure
67
Average Age
  • The tenure for the CK Hutchison Holdings management team is about average.
Management Team

Victor Li

TITLE
Chairman & Group Co-MD
COMPENSATION
HK$79M
AGE
55

Canning Fok

TITLE
Group Co-MD & Executive Director
COMPENSATION
HK$226M
AGE
68

Frank Sixt

TITLE
Group Finance Director
COMPENSATION
HK$72M
AGE
67
TENURE
4.6 yrs

Hing Lam Kam

TITLE
Deputy MD & Executive Director
COMPENSATION
HK$13M
AGE
73
TENURE
5 yrs

Ka-shing Li

TITLE
Senior Advisor
AGE
91
TENURE
1.7 yrs

Edmond Ip

TITLE
Deputy MD & Executive Director
COMPENSATION
HK$13M
AGE
67
TENURE
5 yrs

Dominic Lai

TITLE
Deputy MD & Executive Director
COMPENSATION
HK$69M
AGE
65
TENURE
4.6 yrs

Edith Shih

TITLE
Company Secretary & Executive Director
COMPENSATION
HK$23M
AGE
67
TENURE
4.6 yrs

Simon Man

TITLE
General Manager of Accounts Department
AGE
62

Hans Leung

TITLE
Investor Relations Contact
Board of Directors Tenure

Average tenure and age of the CK Hutchison Holdings board of directors in years:

22.7
Average Tenure
67
Average Age
  • The average tenure for the CK Hutchison Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Victor Li

TITLE
Chairman & Group Co-MD
COMPENSATION
HK$79M
AGE
55
TENURE
1.7 yrs

Canning Fok

TITLE
Group Co-MD & Executive Director
COMPENSATION
HK$226M
AGE
68
TENURE
34.1 yrs

Frank Sixt

TITLE
Group Finance Director
COMPENSATION
HK$72M
AGE
67
TENURE
28.7 yrs

Hing Lam Kam

TITLE
Deputy MD & Executive Director
COMPENSATION
HK$13M
AGE
73
TENURE
26.9 yrs

Edmond Ip

TITLE
Deputy MD & Executive Director
COMPENSATION
HK$13M
AGE
67
TENURE
26.3 yrs

Dominic Lai

TITLE
Deputy MD & Executive Director
COMPENSATION
HK$69M
AGE
65
TENURE
4.6 yrs

Edith Shih

TITLE
Company Secretary & Executive Director
COMPENSATION
HK$23M
AGE
67
TENURE
3 yrs

Rosanna Wong

TITLE
Independent Non-Executive Director
COMPENSATION
HK$280K
AGE
66
TENURE
19 yrs

Chung Hin Wong

TITLE
Independent Non-Executive Director
COMPENSATION
HK$410K
AGE
86
TENURE
4.6 yrs

George Magnus

TITLE
Non-Executive Director
COMPENSATION
HK$220K
AGE
84
TENURE
40 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by CK Hutchison Holdings individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
10. Dec 19 Buy Kin Ning Fok Individual 05. Dec 19 05. Dec 19 100,000 HK$69.00 HK$6,900,000
10. Dec 19 Buy Kin Ning Fok Individual 05. Dec 19 05. Dec 19 100,000 HK$369.05 HK$36,904,630
04. Sep 19 Buy Li Ka Shing (Overseas) Foundation, Endowment Arm Company 03. Sep 19 03. Sep 19 500,000 HK$66.66 HK$33,330,701
07. Aug 19 Buy Frank Sixt Individual 02. Aug 19 02. Aug 19 30,000 HK$72.47 HK$2,174,049
07. Aug 19 Buy Frank Sixt Individual 02. Aug 19 02. Aug 19 30,000 HK$385.58 HK$11,567,480
10. Jun 19 Buy Kin Ning Fok Individual 06. Jun 19 06. Jun 19 50,000 HK$75.76 HK$3,788,065
10. Jun 19 Buy Edith Shih Individual 06. Jun 19 06. Jun 19 10,000 HK$75.05 HK$750,500
06. Jun 19 Buy Kin Ning Fok Individual 05. Jun 19 05. Jun 19 50,000 HK$75.37 HK$3,768,300
04. Jun 19 Buy Edith Shih Individual 31. May 19 31. May 19 5,000 HK$74.15 HK$370,750
05. Jun 19 Buy Edith Shih Individual 04. Jun 19 04. Jun 19 20,000 HK$74.98 HK$1,499,500
03. Jun 19 Buy Kin Ning Fok Individual 30. May 19 30. May 19 50,000 HK$73.42 HK$3,670,750
30. May 19 Buy Kin Ning Fok Individual 27. May 19 29. May 19 350,000 HK$404.69 HK$141,001,651
30. May 19 Buy Yeh Kwong Lee Individual 29. May 19 29. May 19 100,000 HK$74.48 HK$7,448,080
30. May 19 Buy Kin Ning Fok Individual 29. May 19 29. May 19 50,000 HK$74.18 HK$3,709,200
30. May 19 Buy Kin Ning Fok Individual 27. May 19 27. May 19 200,000 HK$74.06 HK$14,811,701
30. May 19 Buy Kin Ning Fok Individual 28. May 19 28. May 19 100,000 HK$74.41 HK$7,440,900
X
Management checks
We assess CK Hutchison Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CK Hutchison Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

1 News

Simply Wall St News

Should Income Investors Look At CK Hutchison Holdings Limited (HKG:1) Before Its Ex-Dividend?

As a result, readers should always check whether CK Hutchison Holdings has been able to grow its dividends, or if the dividend might be cut. … See our latest analysis for CK Hutchison Holdings Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. … It's positive to see that CK Hutchison Holdings's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.

Simply Wall St -

These Fundamentals Make CK Hutchison Holdings Limited (HKG:1) Truly Worth Looking At

I've been keeping an eye on CK Hutchison Holdings Limited (HKG:1) because I'm attracted to its fundamentals. … Proven track record average dividend payer SEHK:1 Income Statement, August 19th 2019 For those seeking income streams from their portfolio, 1 is a robust dividend payer as well. … SEHK:1 Historical Dividend Yield, August 19th 2019 Next Steps: For CK Hutchison Holdings, I've compiled three fundamental aspects you should further research: Future Outlook: What are well-informed industry analysts predicting for 1’s future growth?

Simply Wall St -

Insider Buying: The CK Hutchison Holdings Limited (HKG:1) Group Finance Director Just Bought HK$12m Worth Of Shares

CK Hutchison Holdings insiders may have bought shares in the last year, but they didn't sell any. … SEHK:1 Recent Insider Trading, August 8th 2019 Insider Ownership For a common shareholder, it is worth checking how many shares are held by company insiders. … When combined with notable insider ownership, these factors suggest CK Hutchison Holdings insiders are well aligned, and quite possibly think the share price is too low.

Simply Wall St -

CK Hutchison Holdings Limited (HKG:1): What Does The Future Look Like?

The latest earnings announcement CK Hutchison Holdings Limited (HKG:1) released in March 2019 indicated that the business benefited from a strong tailwind, leading to a double-digit earnings growth of 11%. … Below is my commentary, albeit very simple and high-level, on how market analysts predict CK Hutchison Holdings's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. … Check out our latest analysis for CK Hutchison Holdings Market analysts' consensus outlook for the coming year seems rather muted, with earnings climbing by a single digit 6.5%.

Simply Wall St -

Should You Worry About CK Hutchison Holdings Limited's (HKG:1) CEO Pay Cheque?

According to our data, CK Hutchison Holdings Limited has a market capitalization of HK$299b, and pays its CEO total annual compensation worth HK$80m. … Earnings per share at CK Hutchison Holdings Limited are much the same as they were three years ago, albeit slightly lower, based on the trend. … We compared the total CEO remuneration paid by CK Hutchison Holdings Limited, and compared it to remuneration at a group of other large companies.

Simply Wall St -

Here's What CK Hutchison Holdings Limited's (HKG:1) P/E Is Telling Us

CK Hutchison Holdings has a price to earnings ratio of 7.73, based on the last twelve months. … View our latest analysis for CK Hutchison Holdings How Do I Calculate CK Hutchison Holdings's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for CK Hutchison Holdings: P/E of 7.73 = HK$78.2 ÷ HK$10.11 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

Read This Before Buying CK Hutchison Holdings Limited (HKG:1) For Its Dividend

Could CK Hutchison Holdings Limited (HKG:1) be an attractive dividend share to own for the long haul? … Dividend Growth Potential With a relatively unstable dividend, it's even more important to see if earnings per share (EPS) are growing. Why take the risk of a dividend getting cut, unless there's a good chance of bigger dividends in future? In the last five years, CK Hutchison Holdings's earnings per share have shrunk at approximately 7.9% per annum. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Earnings per share are down, and CK Hutchison Holdings's dividend has been cut at least once in the past, which is disappointing.

Simply Wall St -

Have Insiders Been Buying CK Hutchison Holdings Limited (HKG:1) Shares?

So before you buy or sell CK Hutchison Holdings Limited (HKG:1), you may well want to know whether insiders have been buying or selling. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for CK Hutchison Holdings The Last 12 Months Of Insider Transactions At CK Hutchison Holdings Group Co-MD &amp; Executive Director Kin Ning Fok made the biggest insider purchase in the last 12 months. … While CK Hutchison Holdings insiders bought shares last year, they didn't sell.

Simply Wall St -

CK Hutchison Holdings Limited (HKG:1): Is It A Smart Long Term Opportunity?

Looking at CK Hutchison Holdings Limited's (HKG:1) earnings update in December 2018, analyst consensus outlook appear cautiously optimistic, as a 8.3% increase in profits is expected in the upcoming year, relative to the past 5-year average growth rate of 2.3%. … See our latest analysis for CK Hutchison Holdings What can we expect from CK Hutchison Holdings in the longer term? … SEHK:1 Past and Future Earnings, May 30th 2019 By 2022, 1's earnings should reach HK$45b, from current levels of HK$39b, resulting in an annual growth rate of 5.3%.

Simply Wall St -

Is Now An Opportune Moment To Examine CK Hutchison Holdings Limited (HKG:1)?

The stock’s ratio of 7.74x is currently trading slightly above its industry peers’ ratio of 7x, which means if you buy CK Hutchison Holdings today, you’d be paying a relatively fair price for it. … And if you believe CK Hutchison Holdings should be trading in this range, then there isn’t really any room for the share price grow beyond what it’s currently trading. … Given that CK Hutchison Holdings’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on.

Simply Wall St -

1 Company Info

Description

CK Hutchison Holdings Limited, an investment holding company, operates in ports and related services, retail, infrastructure, energy, and telecommunications businesses worldwide. The company invests in, develops, and operates ports, which operate 288 berths in 51 ports spanning 26 countries throughout Asia, the Middle East, Africa, Europe, the Americas, and Australasia; and provides logistics and transportation-related services, such as cruise ship terminals, airport operations, distribution centers, rail services, and ship repair facilities. It also operates a network of approximately 15,000 retail stores that offer health and beauty products, food and fine wines, consumer electronics, and electrical appliances in Asia and Europe, as well as operates supermarkets; and manufactures and distributes bottled water and beverages under the Watsons Water and Mr. Juicy brands in Hong Kong and Mainland China. In addition, the company invests in energy infrastructure, transportation infrastructure, water infrastructure, waste management, waste-to-energy, household infrastructure, and other infrastructure related businesses primarily in Hong Kong, Mainland China, the United Kingdom, Continental Europe, Australia, New Zealand, Canada, the United States, and the Asia Pacific. Further, it provides mobile telecommunications and data services. Additionally, it researches, develops, manufactures, and sells pharmaceuticals and healthcare products; researches, develops, manufactures, commercializes, markets, and sells nutraceuticals and agriculture-related products; provides marine construction and ship repair yard, water and sewerage, gas distribution, and aircraft maintenance services; and leases rolling stocks. CK Hutchison Holdings Limited was incorporated in 2014 and is based in Central, Hong Kong.

Details
Name: CK Hutchison Holdings Limited
1
Exchange: SEHK
Founded: 2014
HK$286,711,481,175
3,856,240,500
Website: http://www.ckh.com.hk
Address: CK Hutchison Holdings Limited
Cheung Kong Center,
48th Floor,
Central,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 22. May 1981
OTCPK CKHU.F Ordinary Shares Pink Sheets LLC US USD 22. May 1981
DB 2CK Ordinary Shares Deutsche Boerse AG DE EUR 22. May 1981
SHSC 1 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 22. May 1981
SZSC 1 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 22. May 1981
OTCPK CKHU.Y ADR Pink Sheets LLC US USD 13. Apr 2015
DB 2CKA ADR Deutsche Boerse AG DE EUR 13. Apr 2015
Number of employees
Current staff
Staff numbers
187,222
CK Hutchison Holdings employees.
Industry
Industrial Conglomerates
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/01/28 13:17
End of day share price update: 2020/01/24 00:00
Last estimates confirmation: 2020/01/14
Last earnings filing: 2019/08/15
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.