CK Hutchison Holdings (HKG) investor relations material

Executive summary

• Revenue rose 3% year-over-year to HK$240.7 billion, with underlying net profit up 11% to HK$11.3 billion, excluding a one-time UK merger loss.

• Reported net earnings dropped 92% due to a non-cash loss from the UK telecom merger, but underlying EPS increased 11% to HK$2.96.

• All core business segments—Ports, Retail, Infrastructure, and Telecom—delivered underlying EBITDA and EBIT growth, with strong cash flow and a robust balance sheet.

• Dividend per share increased by 3% to HK$0.71, reflecting a balanced approach to shareholder returns.

• The group maintains a conservative outlook for the second half, citing global uncertainties.

Financial highlights

• Underlying EBITDA grew 7% to HK$55.9 billion; underlying EBIT up 9% to HK$31.4 billion year-over-year.

• Operating free cash flow increased 11% to HK$21.8 billion; free cash flow surged 248% to HK$31.0 billion, aided by UK merger proceeds.

• Net debt to net total capital ratio improved to 14.7%, down from 17% a year ago, with liquid assets of HK$137.3 billion.

• Average cost of debt reduced to 3.4% for the period, with interest coverage at 24.7 times.

• Cash and liquid investments increased, covering all debt maturing before December 2028.

Outlook and guidance

• Second half performance is expected to be more modest, with less favorable Forex and working capital effects.

• Ports and retail divisions are projected to maintain growth, leveraging expanded facilities and cost efficiencies, despite volatile trade and geopolitical risks.

• Infrastructure anticipates higher allowed returns in upcoming UK and Australia regulatory resets, with stable, predictable cash flows.

• Telecom expects to realize significant cost and capital synergies from the UK merger over the next five years.

• Capital spending and new investments will remain prudent, with a focus on disciplined cash flow management.