CKHUY - CK Hutchison: Stock Seems Cheap But Could Be A Value Trap

2024-03-27 04:44:35 ET

Summary

• CK Hutchison Holdings' share price has fallen 53% over 5 years, despite only 3% of its EBITDA coming from Hong Kong and 4% from mainland China.
• The company's 2023 FY financial results showed a 1% improvement in revenue, a 9% decrease in underlying earnings, and an increase in underlying free cash flow.
• CK Hutchison's dividend was reduced by 13.5% despite higher free cash flow, and the company did not buy back any shares despite trading at a 70% discount to NAV.

Investment Thesis

CK Hutchison Holdings ( CKHUY ) is a large conglomerate with a diversified portfolio of businesses.

As we frequently point out, despite being headquartered and having its main listing in Hong Kong, only 3% of its EBITDA comes from Hong Kong and only 4% from mainland China.

However, the share price has been punished in line with other Hong Kong companies....

For further details see: