CK Hutchison Holdings: APAC Focus: More than a disposal story

研报英文原文证据摘录

CK Hutchison Holdings: APAC Focus: More than a disposal story

ew of CKH’s major

transactions over the past decade highlights a consistent record of disciplined capital allocation, with

successful execution across investment and divestment cycles. 3) Collaborating with UBS global

analysts to analyse CKH's portfolio assets, we estimate CKH's portfolio has re-rated by 25% since

2023. 4) CKH’s historically volatile free cash flow has likely contributed to its share price

underperformance relative to other Hong Kong conglomerates. We expect this trend to improve. 4)

Following the deconsolidation of VodafoneThree, the completion of the peak 5G capex cycle and

lower finance costs after the disposal of UK Power Networks, UK Rail, and potentially

VodafoneThree, we forecast free cash flow to increase by 22% a year in 2026-27 (excluding disposal

proceeds), supporting a more stable, visible cash flow profile.

WHAT´S PRICED IN? CK Hutchison is trading at 0.38x 2027E P/BV and a 61% discount to NAV, despite a 30% YTD share

price rally. We believe the recovery in valuation multiples across its underlying business segments has

yet to be fully reflected in NAV, while normalising free cash flow comfortably supports dividend

payments.Please

Upside/Downside

Spectrum

Valuedrivers

NAV per share (HK$) NAV discount Dividend per share (HK$)

(2027E)

HK$126.00 upside 168.0 25% 3.43

HK$101.00 base 168.0 40% 3.21

HK$40.00 downside 100.8 60% 2.43

Source: UBS estimates

Company description CK Hutchison (CKH) was incorporated when Cheung Kong and Hutchison Whampoa were

restructured in 2015, consisting of investments in container terminals, retail, telecommunications,

infrastructure and energy.

CK Hutchison Holdings 9 July 2026 ab 2