CKH HOLDINGS(HK:00001) Sou Hu Cai Jing·2025-11-21 08:16Core Viewpoint - CK Hutchison Holdings is considering a dual listing for its subsidiary, Watsons, aiming to raise up to $2 billion, with an expected valuation exceeding $30 billion, potentially making it one of the largest consumer retail IPOs in Hong Kong in recent years [2][4]. Company Overview - Watsons Group, founded in 1841, operates over 17,000 stores across 31 markets, serving more than 6 billion customers annually through both offline and online platforms [4][6]. - The retail segment of Watsons reported total revenue of HKD 98.84 billion for the first half of 2025, reflecting an 8% year-on-year increase, although revenue in China declined by 3.1% to HKD 6.666 billion [4][5]. Financial Performance - For the first half of 2025, Watsons achieved: - Total revenue: HKD 98,840 million, up 8% from HKD 91,469 million in 2024 [5]. - EBITDA: HKD 7,974 million, a 12% increase [5]. - EBIT: HKD 6,180 million, a 14% increase [5]. - Store count: 16,935, a 2% increase from 16,548 [5]. Market Challenges - The Chinese market continues to pose challenges, with a 3% decline in revenue for the fourth consecutive year, attributed to low consumer demand and store closures [12][14]. - Despite the challenges in China, Watsons' European operations showed strong growth, particularly in Eastern Europe, where revenue increased by 16% [12][14]. Strategic Direction - Watsons is focusing on an O+O (Online + Offline) model to adapt to market changes and enhance its global network, leveraging its experience in the Chinese market [14].