CK Hutchison (1 HK): "New And Perhaps Unforeseen Challenges"

• CK Hutchison Holdings (1 HK) has announced a 7% increase in underlying profit in 2025 of HK$22.3bn.

• Factoring in a one-off ⁠non-cash loss of HK$10.9bn relating to the UK telcos merger of 3UK with Vodafone, net profit declined ⁠31% to HK$11.8bn.

• Chairman Victor Li Tzar-kuoi added the group’s businesses will face “new and perhaps unforeseen challenges in 2026“; and is under “absolutely no pressure” to sell any assets.

The Trade:

• At a ~53% discount to NAV and a forward P/B of 0.40x, CKH is inexpensive.

• Near term, expect CKH to drift sideways. Longer-term, this remains a buy.

• Overhangs include ongoing geopolitical and regulatory scrutiny; together with Middle East instability.

This insight is bullish - from a long-term investment point of view.