HK Conglomerates Sector: How does unlisted NAV affect valuation?

Research evidence excerpt

HK Conglomerates Sector: How does unlisted NAV affect valuation?

Global Research

23 July 2026ab

HK Conglomerates Sector Equities

Hong KongHow does unlisted NAV affect valuation?

Real Estate

John Lam, CFA

NAV composition - Listed vs unlisted entities Analyst

A common feedback on our APAC Focus note on CK Hutchison (CKH) is that the john-za.lam@ubs.com

majority (71%) of CKH's NAV is unlisted business, compared to only 6% for Swire Pacific +852-2971 6358

and 24% for Jardine Matheson (JM). Hence, the market tends to underestimate CKH's Ben Ho

NAV, and only reflect it upon asset disposal. This implies more share upside potential for Associate Analyst

CKH, which has been looking at possible divestments more than investment. On the ben.ho@ubs.com

other hand, we expect Jardine Matheson's NAV growth in the next five years to have +852-3712 2819

more contribution from unlisted business (eg the I-MED acquisition), which may create Mark Leung

some uncertainty regarding its NAV estimate. Swire Pacific's NAV growth will still be Analyst

coming from Swire Properties and Cathay Pacific. Our preferred stock picks are CK mark.leung@ubs.com

Hutchison (Buy), followed by Jardine Matheson (Buy), and Swire Pacific (Neutral). +852-2971 8636

Vera Gong, CFA

CK Hutchison: Declining unlisted NAV mix Analyst

Revisiting CKH's history in the past decade, its investment was more about infrastructure vera.gong@ubs.com

+852-2971 8950

business (through CKI) with relatively limited investment in other businesses. At the

same time, CKH is trying to dispose of assets. Looking forward, we think CKH's NAV mix

will be more skewed towards cash (due to potential disposals) and listed business (CKI),

but less so from unlisted business. This should help investors to reassess its NAV and