Cheung Kong Holdings (CHEUY.PK) (0001.HK), headquartered in Hong Kong, is a conglomerate controlled by Asia's richest man, Li Ka Shing. It is a major property developer in Hong Kong and China, and has interests in hotels, infrastructure and investments & finance. Cheung Kong Holdings also owns a 49.9% stake in Hutchison Whampoa (OTCPK:HUWHY) (0013.HK), a global conglomerate in itself, with business interests in ports, telecommunications, property and hotels, retail, energy and infrastructure.
The market value of the 49.9% stake in Hutchison Whampoa represents more than 75% of the market value of Cheung Kong, and with a sum-of-the-parts valuation, we will find that Cheung Kong's non-Hutchison assets are deeply undervalued.
Using a sum-of-the-parts valuation
Given that Cheung Kong (Holdings)...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|