CK Infrastructure Holdings (1038) AI Stock Analysis

• Market Cap: $124.56B
• Dividend Yield: 7.13%
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.21
• Revenue Growth: -16.64%
• EPS Growth: 1.10%
• Country: HK
• Employees: 2,358
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 1.51
• Shares Outstanding: 2,519,610,800
• 10 Day Avg. Volume: 1,590,093
• 30 Day Avg. Volume: 1,850,702
• PEG Ratio: 18.35
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $58.00
• Price Target Upside: 10.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: HK$57.00 ▲(8.26%Upside)

CK Infrastructure Holdings scores well due to its solid financial stability, attractive valuation, and moderate technical momentum. The company’s strong dividend yield and reasonable P/E ratio are significant strengths. However, declining revenue and cash flow highlight growth and liquidity challenges that may affect future performance.

Positive Factors

Financial Performance

UK portfolio achieved exceptional profit growth of 31% thanks to newly acquired businesses and robust results from regulated operations.

Mergers and Acquisitions

Robust M&A pipeline acts as a catalyst for share price.

Revenue and Dividends

Solid recurring revenue stream supports higher dividends.

Negative Factors

Currency Risk

Currency fluctuations remain the most salient risk for CKI, given its geographic diversification.

CK Infrastructure Holdings Business Overview & Revenue Model

Company Description

CK Infrastructure Holdings Limited, an infrastructure company, develops, invests in, operates, and commercializes infrastructure businesses in Hong Kong, Mainland China, the United Kingdom, Continental Europe, Australia, New Zealand, Canada, and the United States. The company invests in energy infrastructure, transportation infrastructure, water infrastructure, waste management, waste-to-energy, household infrastructure, and infrastructure related businesses. It is also involved in the production and laying of asphalt; manufacture, distribution, and sale of cement; property investment and project management activities; and investment in securities, as well as provision of waste management services. The company was formerly known as Cheung Kong Infrastructure Holdings Limited and changed its name to CK Infrastructure Holdings Limited in May 2017. The company was incorporated in 1996 and is headquartered in Central, Hong Kong. CK Infrastructure Holdings Limited is a subsidiary of Hutchison Infrastructure Holdings Limited.

How the Company Makes Money

CK Infrastructure Holdings generates revenue through its diversified portfolio of infrastructure investments. The company earns money primarily from long-term contracts and concessions in the sectors it operates, such as electricity and gas distribution, toll roads, water supply and treatment, and waste management. CKI benefits from stable and predictable cash flows due to regulatory frameworks and long-term agreements that often include inflation-linked pricing. Additionally, the company engages in strategic partnerships and joint ventures to expand its reach and capabilities, enhancing its revenue potential. CKI's earnings are also supported by its geographic diversification, with significant assets across various countries, mitigating market-specific risks and contributing to a balanced revenue stream.

CK Infrastructure Holdings Financial Statement Overview

Summary

CK Infrastructure Holdings shows strong profitability and financial stability with robust margins and a solid equity base. However, challenges are evident with declining revenue and cash flow metrics, indicating potential growth and liquidity issues.

Income Statement

The income statement shows stable profitability with a strong net profit margin above typical industry standards, largely driven by robust gross profit and EBIT margins. However, the revenue has declined over the last three years, indicating potential growth challenges.

Balance Sheet

The balance sheet reflects a strong equity position with a high equity ratio and a declining trend in debt levels, enhancing financial stability. The debt-to-equity ratio is healthy, demonstrating prudent leverage management.

Cash Flow

The cash flow statement reveals a decreasing trend in operating cash flow and free cash flow over recent years, which could constrain operational flexibility. Nevertheless, free cash flow remains positive, indicating an ability to cover operational needs.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.99B	5.99B	6.62B	7.05B	7.18B
Gross Profit	2.66B	1.73B	3.53B	3.91B	4.40B
EBITDA	9.94B	9.86B	9.28B	8.94B	3.84B
Net Income	8.12B	8.03B	7.75B	7.51B	7.32B
Balance Sheet
Total Assets	157.84B	165.87B	165.87B	163.00B	167.41B
Cash, Cash Equivalents and Short-Term Investments	8.11B	13.08B	18.05B	8.09B	13.48B
Total Debt	19.54B	24.23B	38.45B	40.12B	47.63B
Total Liabilities	26.59B	32.60B	46.37B	47.04B	55.85B
Stockholders Equity	131.16B	133.18B	119.39B	115.83B	111.44B
Cash Flow
Free Cash Flow	1.59B	3.50B	6.64B	7.47B	8.15B
Operating Cash Flow	1.97B	3.85B	7.12B	7.83B	8.36B
Investing Cash Flow	3.18B	2.41B	9.03B	-1.04B	667.00M
Financing Cash Flow	-10.12B	-11.22B	-6.19B	-12.19B	-7.62B

CK Infrastructure Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1038, the sentiment is Positive. The current price of 52.65 is above the 20-day moving average (MA) of 52.16, above the 50-day MA of 51.09, and above the 200-day MA of 51.21, indicating a bullish trend. The MACD of 0.49 indicates Positive momentum. The RSI at 60.11 is Neutral, neither overbought nor oversold. The STOCH value of 52.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1038.

CK Infrastructure Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1038	73 Outperform	$124.56B	16.19	6.62%	7.13%	-16.64%	1.10%
Sector *	64 Neutral	£6.68B	7.02	15.34%	5.84%	2.03%	-25.14%
CLPHF		$21.31B	14.15	11.36%	3.82%	―	―
CRPJF		$12.82B	6.13	15.59%	7.63%	―	―
HGKGF		$13.78B	17.68	6.95%	8.07%	―	―
HKCVF		$6.53B	16.37	6.32%	0.72%	―	―
HOKCF		$15.83B	21.63	9.72%	0.88%	―	―

CK Infrastructure Holdings Corporate Events

CK Infrastructure Holdings Strengthens Governance with Nomination Committee

CK Infrastructure Holdings Limited has established a Nomination Committee to ensure compliance with corporate governance standards as per the Hong Kong Stock Exchange’s Listing Rules. The committee, primarily composed of independent non-executive directors, is tasked with reviewing the board’s structure and composition, identifying suitable director candidates, and making recommendations for appointments and succession planning, thereby supporting the company’s strategic goals and enhancing shareholder value.

The most recent analyst rating on (HK:1038) stock is a Hold with a HK$49.00 price target. To see the full list of analyst forecasts on CK Infrastructure Holdings stock, see the HK:1038 Stock Forecast page.

CK Infrastructure Holdings Defines Audit Committee’s Role

CK Infrastructure Holdings Limited has outlined the terms of reference for its Audit Committee, which was established in 1998. The committee is composed of non-executive directors, primarily independent ones, and is responsible for ensuring compliance with the Corporate Governance Code. The announcement emphasizes the committee’s role in maintaining transparency and accountability in the company’s financial practices, which is crucial for its stakeholders and market positioning.

The most recent analyst rating on (HK:1038) stock is a Hold with a HK$49.00 price target. To see the full list of analyst forecasts on CK Infrastructure Holdings stock, see the HK:1038 Stock Forecast page.

CK Infrastructure Holdings Passes All Resolutions at AGM

CK Infrastructure Holdings Limited held its Annual General Meeting on May 21, 2025, where all proposed resolutions were passed. Key resolutions included the approval of audited financial statements, the declaration of a final dividend, the election of directors, and the appointment of auditors. The meeting also granted the board mandates to issue and buy back shares, reflecting strong shareholder support and potentially enhancing the company’s financial flexibility.

The most recent analyst rating on (HK:1038) stock is a Hold with a HK$49.00 price target. To see the full list of analyst forecasts on CK Infrastructure Holdings stock, see the HK:1038 Stock Forecast page.

CK Infrastructure Holdings Releases 2024 Annual and Sustainability Reports

CK Infrastructure Holdings Limited has released its Annual Report and Accounts for 2024, along with the Sustainability Report for the same year. These documents, which detail the company’s financial performance and sustainability initiatives, have been made available on the company’s website and submitted to the Financial Conduct Authority’s National Storage Mechanism. Additionally, the company announced that its 2025 Annual General Meeting will be held as a hybrid event, allowing both physical and online participation, which underscores its commitment to accessibility and shareholder engagement.

CK Infrastructure Holdings Announces 2025 AGM with Key Resolutions

CK Infrastructure Holdings Limited has announced its Annual General Meeting (AGM) to be held both in-person and online on May 21, 2025. The meeting will cover the approval of financial statements, declaration of a final dividend, election of directors, and appointment of auditors. Additionally, a resolution will be discussed to grant the directors a mandate to issue additional shares, not exceeding ten percent of the current total shares, under specified conditions. This move could potentially impact the company’s capital structure and shareholder value.