In this July 30, 2017 file photo, the logo for CK Hutchison Holdings Ltd is displayed atop the Cheung Kong Center building, which houses the company's headquarters, in Hong Kong, China. (ANTHONY KWAN / BLOOMBERG)
HONG KONG – Tycoon Li Ka-shing’s CK Hutchison Holdings reported profit attributable to ordinary shareholders for the first half of 2022 at HK$19.09 billion ($2.43 billion), a 4 percent increase compared to the same period last year. The company declared a 5 percent increase in the interim dividend to 84 HK cents per share.
The multinational conglomerate reported an 8 percent hike in total revenue to HK$229.61 billion while the total EBITDA rose 3.5 percent to HK$70.52 billion.
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CK Hutchison Holdings, a Hong Kong-based and Cayman Islands-registered corporation formed in March 2015 through the merger of Cheung Kong Holdings and its main associate company Hutchison Whampoa, is a multinational conglomerate with four core businesses ‐- ports and related services, retail, infrastructure and telecommunications.
CK Hutchison Holdings Chairman Victor Li Tzar-kuoi cautioned that the COVID situation remained worrisome in Hong Kong and the Chinese mainland with lockdown and movement restrictions affecting the group’s businesses there
The conglomerate said the group’s results were adversely affected by serious weakening in British pound and euro exchange rates, but high energy prices, limited exposure to floating rate borrowings, steady operating contributions from the infrastructure business, and geographical diversity of the group’s asset portfolio have enabled to company to deliver an overall steady underlying performance in the period.
CK Hutchison Holdings Chairman Victor Li Tzar-kuoi cautioned that the COVID situation remained worrisome in Hong Kong and the Chinese mainland with lockdown and movement restrictions affecting the group’s businesses there.
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Moreover, global supply chain disruptions together with energy and food price inflation drove headline inflation rates to multiyear highs, and this led to growth expectations being revised downward substantially, with a heightened risk of recession expected in several of the markets in which CK Hutchison operates, the chairman added in the company statement on Thursday.
CK Asset Holdings, the real estate arm of CK Hutchison, reported profit attributable to shareholders at HK$12.94 billion for the six months ended June 30, a 58% surge from a year ago. The company declared a 5 percent increase in interim dividend to 43 HK cents per share
Globally, a stronger dollar remains one of the group’s major challenges. Based on its 2021 results, a 10 percent depreciation in the British pound against the US dollar would have led to an EBITDA decline of about HK$2.5 billion, Citigroup analysts led by George Choi wrote in a report in June, citing management estimates. A similar depreciation in the euro would result in an EBITDA fall of HK$3.1 billion, Choi wrote.
“Looking forward, the group will continue to aim to achieve growth in recurring earnings and increase shareholder returns while maintaining a strong financial position and ensuring disciplined execution of prudent financial, liquidity and cash flow management,” Li said. “It will also continue to seek sustainable business opportunities which align with our core strategy of increasing shareholder value.
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Meanwhile, CK Asset Holdings, the real estate arm of CK Hutchison, reported profit attributable to shareholders at HK$12.94 billion for the six months ended June 30, a 58 percent surge from a year ago. The company declared a 5 percent increase in interim dividend to 43 HK cents per share.
Goldman Sachs and Bank of America Securities both gave a “buy” rating to CK Hutchison, while the Bank of America Securities cited CK Asset’s robust balance sheet.
CK Hutchison’s share price rose 0.88 percent to close at HK$51.40 on Thursday, while CK Asset’s closed up 0.37 percent at HK$54.30.
The group’s stock price has persistently underperformed this year, and is trading 31 percent below analysts’ 12-month consensus target price.
With Bloomberg inputs