CK Hutchison Holdings (OTCPK:CKHUY)
may be a Hong Kong-based conglomerate, one that is no longer involved
in property development or management after a transaction that created CK Property (now CK Asset Holdings (OTCPK:CHKGF))
in 2015, but that doesn't mean it offers investors all that much
exposure to Hong Kong or mainland China. Close to 60% of CK Hutchison's
EBITDA comes from Europe, much of that from U.K., which makes the
company considerably more leveraged to the health of the European
economy and the uncertainties surrounding Brexit.
On
the positive side, CK Hutchison has done a lot to improve the
profitability of its telecom operations, and its Husky energy operations
should be able to post much better results with the improvements in oil
and gas prices. Retail is more mixed, but likely to turn up in Europe,
while the ports and infrastructure operations look more sedate. All
told, CK Hutchison shares look a little undervalued on a cash flow
basis, but I'd like to see the company put more capital to work as a way
of driving more value-creation for shareholders.
Read more here:
CK Hutchison Holdings Needs To Find A New Driver
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