Last week, CK Hutchison (1 HK) reported a 6.1% and 6.4% lift in 1H26 revenue and underlying net profit (excluding one-off items) to HK$241.6bn and HK$12.6bn. Pretty decent numbers.
End-July, CKH offloaded its 49% stake in VodafoneThree for US$5.8bn. No mention of the AS Watson IPO in the results or the anaylsts’ call. Reportedly it’s been delayed to 2027.
The Panama port cessation incurred a HK$496mn hit to EBITDA. CKH has now announced a Investment Treaty Arbitration against the Panamanian Republic, an entirely separate claim to the contractual arbitration.
The Trade:
At a ~52% discount to NAV and a forward P/B of 0.47x, CKH remains inexpensive.
Further assets sales/IPOs (ports, telcos, utilities, supermarkets) remain ongoing.
Long-term, CKH is a buy.
Net debt at the parent level has dipped to HK$65bn (cash of HK$167bn vs debt [excl. leases] of HK$232bn).
This insight is bullish - from a long-term investment point of view.