CK Hutchison (1 HK)‘s arbitration - with the Panama government AND Maersk - continues, with China’s full backing, over the (ostensibly) illegal confiscation of the Balboa and Cristobal ports.
Elsewhere, ongoing divestments are further stacking CKH’s cash pile, a development not lost on the three key rating agencies.
And CKH’s 16.7% stake in Cenovus Energy (CVE US), already a strong cashflow generator, is a key standout from the ongoing Iran situation.
The Trade:
At a ~49% discount to NAV and a forward P/B of 0.40x, CKH remain inexpensive.
Long-term, CKH remains a buy.
This insight is bullish - from a long-term investment point of view.