WinstonWınston

Deep Value: cash covers more than 100% of the stock price

This company holds roughly HK$358.69B in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Stock

CK Hutchison Holdings Limited

0001.HK
65
Conglomerates · Industrials
Price
HK$67.40
+0.15 (+0.22%)
Market Cap
HK$258.14B
Exchange
Hong Kong Stock Exchange
Winston Score
65
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Oct 5, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Strong
21/30
Growth
Mixed
7/20
Cash Flow
Exceptional
9/10
Stability
Exceptional
9/10
Valuation
Good
6/10
Ownership
Good
10/15
Dividends
Good
3/5

65 of 100 counted points = Winston Score 65.

§Winston Score History

The full picture

CK Hutchison Holdings is a large Hong Kong-based conglomerate that owns businesses across many different industries. Its main divisions include ports, retail stores, infrastructure, energy, and telecommunications. The company serves everyday consumers and businesses in dozens of countries, and it operates one of the world's largest port networks, handling shipping containers at terminals across Asia, Europe, and the Americas.

The company makes money in several ways — charging fees at its ports, selling goods through its retail chains (including the health and beauty brand Watson's), collecting fees from infrastructure assets like pipelines and toll roads, and earning subscription revenue from mobile phone customers. CK Hutchison operates in over 50 countries, making it one of the most geographically diversified conglomerates in the world. Its broad spread of assets across stable, regulated industries provides some protection against downturns in any single market, though its large exposure to Europe and ongoing geopolitical tensions around Hong Kong-linked businesses remain key risks to watch.

Share count broadly stable

−0.5% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 3.85B (2021) → 3.83B (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
56.2%
Premium pricing power — 56.2% gross margin
Profit after running costs
Operating Margin
34.9%
Excellent — 34.9% operating margin
Return on the money invested
ROCE
11.8%
Below par — 11.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-2.3%
Shrinking sales (-2.3% YoY)
Profit growth
EPS YoY
+388.6%
Earnings growing fast (+388.6% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
171%
Turns 171% of profit into real cash
Spare cash per sale
FCF Margin
17.1%
Converts sales into free cash efficiently (17.1%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
0.44
Conservative — low debt load (0.44)
Covers its interest
Interest Cover
16.30x
Comfortably covers interest (16.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
6.8x
Attractive valuation — P/E 6.8

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
-3.8
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend
Dividend Yield
4.39%
Healthy income — 4.39% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record
Dividend Growth
-13.8%
Dividend cut (-13.8% YoY) — warning sign

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