CKH HOLDINGS(HK:00001) Hua Xia Shi Bao·2025-03-26 04:41Core Viewpoint - Li Ka-shing's CK Hutchison Holdings (CKH) reported a significant decline in net profit for 2024, dropping over 27%, despite a double-digit growth in its port business, leading to market sell-off concerns [3][11]. Financial Performance - CKH's total revenue for 2024 reached HKD 476.68 billion, marking a year-on-year increase of 3.3% [3]. - The company's net profit attributable to shareholders was HKD 17.09 billion, reflecting a decrease of 27.3% compared to the previous year [3]. Revenue Breakdown - The company has five main revenue sources: ports and related services, retail, infrastructure, telecommunications, and financial and investment services [4]. - Retail remains the largest revenue contributor, generating approximately HKD 190.19 billion in 2024, a 4% increase, accounting for about 40% of total revenue [5]. - The financial and investment segment reported revenue of HKD 97.51 billion, up 2%, representing 20% of total revenue [5]. - Telecommunications generated HKD 88.37 billion, also showing a 2% increase, making up 19% of total revenue [5]. - Infrastructure revenue was HKD 55.32 billion, with a 1% growth, contributing 12% to total revenue [5]. - The port and related services segment, while the smallest, achieved revenue of approximately HKD 45.28 billion, an 11% increase, accounting for about 9% of total revenue [5][6]. Port Business Insights - The port business experienced a 6% increase in throughput, handling 87.5 million standard containers in 2024 [7]. - The growth in the port segment was driven by a 6% increase in throughput and a 13% rise in warehousing revenue, with EBITDA and EBIT rising by 19% and 27%, respectively [6][7]. - CKH's port operations cover 295 berths across 53 ports in 24 countries, with a strong performance attributed to stable consumer spending in Europe and the U.S. [6][9]. Strategic Asset Sale - CKH announced plans to sell a significant portion of its port assets to a consortium led by BlackRock, which includes stakes in 43 ports across 23 countries, with a total enterprise value of USD 22.8 billion [11]. - The sale is part of CKH's strategy to shift from a global to a regional focus, aiming to enhance cash flow and reduce exposure to geopolitical risks [11][12]. - The transaction is expected to generate over USD 19 billion in cash for CKH after adjustments [11]. Future Outlook - The company anticipates potential challenges in its port operations due to geopolitical risks and supply chain disruptions but expects moderate growth in Asia and the Middle East [9][12]. - CKH's management plans to limit capital expenditures and focus on cash flow management amid an uncertain operating environment [12].