CKH Holdings (former Cheung Kong Hutchison) 0001

[winston]

not vested

CK Hutchison Holdings Limited (0001.HK) 1H21 in-line; core business recovery on track in 2H Maintain OUTPERFORM Target price (HK$): 77.00 (from 74.00)

Ports and retail both rebounded strongly from last year on economic activities starting to normalise as the reopen started.

However, 3 Europe was negatively impacted by increased competition in Italy and higher D&A from a higher asset base from significant investment in IT and 5G rollouts. Infrastructure remained steady.

The result was also helped by the one-off gain from disposal of the tower asset as well as FX tailwinds.

In 2H, we see the core business staying on a recovery path, while the FX tailwind may also continue.

Ports should continue to benefit from recovery of trade flows, while retail business may see uncertainty from COVID resurgence, yet the impact should be manageable.

We revise 2021/22E earnings by 6%/-4% to factor in latest business updates.

The current valuation is attractive at 6x 2021E P/E, with a 5.5% dividend yield. Maintain OUTPERFORM rating and lift TP to HK$77 (from HK$74).

Source: CS

[winston]

CK Hutchison Holdings (1 HK) - Recovery in major business segments

CK Hutchison is a diversified conglomerate whose many business segments lend relative stability.

However, the group has not been immune to Covid-19 and the impact was seen in its financial results.

On a more positive note, the group is seeing recovery in operations in recent times.

Its balance sheet has become more solid after the European telco tower sales; upcoming catalysts include more share buybacks and asset disposals/capital recycling. BUY.

Source: OCBC

[winston]

not vested

CK Hutchison Holdings (1 HK) - Busy on the M&A front

CK Hutchison is a diversified conglomerate whose many business segments lend relative stability.

However, the group has not been immune to Covid-19 and the impact was seen in its financial results.

On a more positive note, the group is seeing recovery in operations in recent times.

Its balance sheet has become more solid after the European telco tower sales; upcoming catalysts include more share buybacks and asset disposals/capital recycling. BUY.

Source: OCBC

[winston]

not vested

C Suisse Drops CKH HOLDINGS (00001.HK) TP to $74, Believes Valuation Still Enticing

Credit Suisse, in its report, cut the target price of CKH HOLDINGS (00001.HK) to $74 from $77 with a rating of Overweight to reflect FX headwinds and weak retail sales momentum in 2H.

The broker also trimmed the company's 2021/ 22E adjusted EPS by 12.9%/ 3.2%.

Credit Suisse believed that CKH's valuation remains enticing at 6x 2022E P/E with 5.4% dividend yield.

The broker expected the company's net profit of $16.4 billion in 2H21 to be flattish YoY, and revenue to fall by 8%.

Source: AAStocks Financial News

[winston]

Buyers eyeing power UK stakes, says CKH

CK Hutchison (0001) and sister companies controlled by tycoon Li Ka-shing's family have confirmed in a market filing that unnamed parties have expressed an interest in buying part or all of their stakes in UK Power Networks.

It was reported earlier that a consortium led by Macquarie and KKR was in advanced talks to buy the UK electricity distribution business, which could value at as much as 15 billion pounds (HK$155 billion).

The bidder group was also said to include APG, China Investment Corp., Ontario Teachers' Pension Plan Board and PSP Investments. An agreement could be just weeks away, it was said.

UK Power Networks owns and maintains electricity cables across London and the southeast and east of England and serves about 8.3 million homes. It was acquired in 2010 by Li's family companies.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... ,-says-CKH

[winston]

not vested

Brokers See CKH 2021 NP to Rise 14% under Post-IFRS 16 Basis; Focus on UK, European Asset Guidance

CKH HOLDINGS (00001.HK) is set to release the 2021 results next Thursday (17th).

According to the forecasts of four brokers as complied by our reporters, CKH's 2021 net profit under Post-IFRS 16 basis will range between $31.012-34.65 billion, up 6.4%-18.9% YoY. The median is estimated to be $33.225 billion, up 14% YoY.

The market was eyeing on the management's guidance for a potential sale of UK and European assets, future dividend payment and potential share buyback.

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Brokers│2021E NP under Post-IFRS 16 basis│YoY change
Credit Suisse│$34.65 billion│+18.9%
BofA Securities│$33.699 billion│+15.6%
Citigroup│$32.75 billion│+12.4%
HSBC Global Research│$31.012 billion│+6.4%

Based on 2020 net profit under Post-IFRS 16 basis of $29.143 billion.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2022-03-08 12:25.)

Related News:: Citi Predicts CKI HOLDINGS to Benefit from Potential Sale of UKPN Interest, Restates Buy Rating

Source: AAStocks Financial News

[winston]

CK Hutchison profit rises 15pc to $33.5b

by Aiden He

CK Hutchison (0001) saw its net profit rise by nearly 15 percent to HK$33.5 billion last year, proposing a final dividend of HK$1.86, up 9.4 percent from an earlier year.

Earnings before interest, taxes, depreciation, and amortization during the period jumped around 11 percent to HK$135.7 billion.

Total revenue grew 10 percent to HK$445.4 billion last year, of which the retail business, which accounted for 39 percent of its revenue, rose by 9 percent to HK$173.6 billion.

It had 16,398 retail stores across 28 markets at the end of 2021, a 1 percent increase compared to last year.

Revenue generated from the ports and related services business advanced by 29 percent to HK$42.3 billion, and its 291 operating berths handled 88 million twenty-foot equivalent units last year, up by 5 percent from 2020.

Income created from CK Hutchison Group Telecom edged up by 2 percent to HK$92.6 billion last year while the active customer base of 3 Group Europe stands at 38.5 million.

CK Hutchison's sister company, CK Asset (1113), said its 2021 net profit rose 30.5 percent to HK21.2 billion and proposed a final dividend of HK$1.79, a 22.6 percent growth from 2020. Revenue from continuing operations last year increased about 17 percent to HK$83.2 billion.

Recognized income from property sales for the year edged down by 2 percent to HK$37.8 billion and expects to book contracted sales of HK$25.2 billion this year.

Regarding the HK$2 billion goodwill impairment of Greene King, its UK pub business, Li said it is a conservative practice and he has no intention to sell the assets. Instead, he is confident that pub operation will steadily recover following the lifting of all restrictions and had bought about 40 bars last year.

Source: The Standard

https://www.thestandard.com.hk/section- ... -to-$33.5b

[winston]

not vested

Cash-rich CK Hutch plans share buyback

CK Hutchison (0001) says more than HK$30 billion proceeds from the sale of tower assets in the United Kingdom will be partly used to buy back its shares this year.

AS Watsons Group has operated in 29 markets, with more than 16,400 stores. It launched the business in Gulf countries, including the United Arab Emirates and Qatar, last year.

Hutchison Ports operates 52 ports in 26 countries and signed a partnership with Saudi Arabia last year, adding that it is also considering developing terminals in Egypt.

Source: The Standard

https://www.thestandard.com.hk/section- ... re-buyback

[winston]

not vested

CK Hutchison profit jumps 9.5pc to $36b

by Caroline Zheng

Net profit jump by 9.5 percent to HK$36.7 billion last year, proposing a final dividend of HK$2.086 - up 12 percent from a year earlier.

Total revenue edged up 3 percent to HK$457.2 billion last year,

Source: The Standard

https://www.thestandard.com.hk/section- ... pc-to-$36b

[winston]

not vested'

Brokers' Post Interim Result TPs, Views on CKH HOLDINGS (00001.HK) (Table)

Brokers│Ratings│TPs (HKD)
CLSA│Buy│65
UBS│Buy│62.3
BofA Securities│Buy│62


Brokers│Views

CLSA│Interim results dragged down by Europe 3 group and port business; dividend reduced by 10%

UBS│Business results weighed down by rising costs and revenue of certain ports, with downside risk to earnings expectations

BofA Securities│Results from core operations still decent but 10% reduction in dividend was disappointing

Source: AAStocks Financial News