CK Hutchison Holdings (CKHUY), mcap=$24bn, price HK$49.50 vs HK$44.00

CKHUY pitch:
– A portfolio of largely infrastructure-like assets at less than 5x P/E and more than 6% dividend yield.

– CKH’s primary businesses today are ports, retail, telecom, infrastructure, and energy. 
– Roughly ~13% of EBIT comes from China and HK combined, and ~58% comes from Europe. 
– List of transitory reasons that caused the stock to go from “discounted” to “severely discounted” since 2017. 
– A number of catalysts are on the horizon, including IPOs/disposals of assets, more buybacks and more active role in pushing the group forward from the new Chairman.
– If nothing happens, then we are sitting with a 6% dividend yield and a 10yr track-record of the company compounding BV at ~7%.

CKHUY valuation:
– Valuing port assets at 12x EBITDA, retail business at 11x, European telecom at 6x and the rest at public market valuation results in SOTP roughly 2x of the current stock price.

Exp. gain: +100%.

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