CK Hutch (1 HK): Assets Sales And Listings Abound. This Is A Buy
Reportedly, CK Hutchison (1 HK) is exploring a dual-listing of AS Watson (Hong Kong & London) in the second half of this year.
AS Watson reported FY25 revenue and EBITDA of HK$209bn and HK$18.2bn. A US$30bn valuation is touted, or ~13x turns of EBITDA.
Elsewhere, CKH is exploring listing its European telcos; talks remain ongoing regarding the sale of ex-China/Panama ports; and potentially merging Park N Shop with DFI Retail Group (DFI SP)‘s Wellcome.
The Trade:
At a ~47% discount to NAV and a forward P/B of 0.46x, CKH remain inexpensive.
Assets sales (ports, telcos, utilities, supermarkets) ongoing (and purported); plus possible retail and/or telco listings.
Long-term, CKH remains a buy.
This insight is bullish - from a long-term investment point of view.
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