CK Hutchison: Limited Downside Risk At 0.4x P/Book [Seeking Alpha]
CK HUTCH HLD LTD UNSP/ADR (CKHUY)
NASDAQ:AMEX Investor Relations:
ckh.com.hk/en/ir
Company Research
Source: Seeking Alpha
SummaryCK Hutchison appears well-positioned to weather the current storm.The company’s defensive business mix and ability to generate positive cash flows are deeply unappreciated by the market.Planned value unlocking initiatives could drive a re-rating.The current share price, implying an ~60% discount to book value, represents an attractive entry point investors.I believe CK Hutchison (OTCPK:CKHUYFY19 Results Remain ResilientCKH'sFY19 reportAs a result, the mixed performances across the group was largely expected. On the retail front, AS Watson posted +8% YoY EBITDA growth (pre- IFRS 16 implementations) for FY20 in local currency driven by steady store adds (+5% YoY) and steady same-store sales growth (Asia +4% YoY, China +2% YoY and Europe +2% YoY). Such a result, in my view, is commendable achievement amid the impact from the ongoing HK demonstrations to its retail operations in 2H19.The port division, on the other hand, saw EBITDA grew +3% YoY (pre-IFRS 16 implementations, vs. +7%
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