CK Infrastructure Holdings (1038) AI Stock Analysis

• Market Cap: HK$153.70B
• Dividend Yield: 4.5%
• Average Volume (3M): 2.01M
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.06
• Revenue Growth: -10.67%
• EPS Growth: 0.65%
• Country: HK
• Employees: 2,358
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 1.73
• Shares Outstanding: 2,519,610,800
• 10 Day Avg. Volume: 2,204,296
• 30 Day Avg. Volume: 2,009,375
• PEG Ratio: 19.07
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 29.14
• P/FCF Ratio: 91.57
• 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: HK$59.55
• Price Target Upside: -8.31% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$72.00 ▲(10.85% Upside)

CK Infrastructure Holdings scores well due to its strong financial stability and attractive valuation. However, technical indicators suggest a neutral to slightly bearish short-term trend, and declining revenue and cash flow metrics highlight potential growth and liquidity challenges.

Positive Factors

Strong balance sheet

A high equity ratio and declining debt levels indicate prudent leverage management and stronger solvency. That enhances long-term financial flexibility to fund capex, support JV investments, and withstand revenue volatility without urgent refinancing, preserving strategic optionality.

Regulated, diversified asset base

A large portfolio of regulated utilities and contracted infrastructure yields predictable, long-duration cash flows. Regulatory allowed returns, tariff indexation and long-term contracts provide durable revenue underpinning, reducing demand cyclicality and supporting stable distributions over time.

Strong margins and profitability

Consistently strong gross and EBIT margins indicate structural cost advantages or pricing power across assets. Higher margins support internal cash generation, allow dividend coverage and internal reinvestment, and bolster resilience if revenue growth softens over the medium term.

Negative Factors

Declining revenue trend

A multi-year revenue decline undermines scale and could compress future earnings potential. Persistent top-line weakness limits reinvestment capacity, may pressure margins in some segments, and reduces the pool of internally generated funds for acquisitions or network expansions.

Decreasing operating and free cash flow

Falling operating and free cash flows constrain financial flexibility for capex, debt reduction and distributions. Even with positive FCF, a sustained decline raises funding risk for growth initiatives and increases reliance on external financing or asset disposals over the medium term.

Regulatory and FX dependence

Earnings and allowed returns depend on regulatory outcomes and tariff mechanisms; adverse resets can materially reduce cash flows. Significant overseas exposure also creates translation and economic risk from FX swings, adding structural uncertainty to medium-term earnings visibility.

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 generates revenue through a variety of key streams, primarily by investing in and managing a portfolio of infrastructure assets that provide essential services. The company earns income from regulated utility operations, including electricity and gas distribution, as well as from tolls and usage fees in transportation sectors. Significant revenue also comes from waste management services. The company often partners with government bodies and other private entities to secure long-term contracts, ensuring a steady cash flow. Additionally, CK Infrastructure benefits from its strategic investments in overseas markets, which diversify its revenue sources and mitigate risks associated with domestic fluctuations.

CK Infrastructure Holdings Financial Statement Overview

Summary

CK Infrastructure Holdings demonstrates solid profitability and financial stability, supported by strong margins and a robust equity base. However, declining revenue and cash flow metrics suggest potential growth and liquidity challenges.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.11B	4.99B	5.99B	6.62B	7.05B	7.18B
Gross Profit	1.36B	2.66B	1.73B	3.53B	2.42B	3.17B
EBITDA	9.60B	9.94B	9.86B	9.28B	8.94B	3.84B
Net Income	8.15B	8.12B	8.03B	7.75B	7.51B	7.32B
Balance Sheet
Total Assets	164.62B	157.84B	165.87B	165.87B	163.00B	167.41B
Cash, Cash Equivalents and Short-Term Investments	4.72B	8.11B	13.08B	18.05B	8.09B	13.48B
Total Debt	20.71B	19.54B	24.57B	28.56B	40.12B	32.93B
Total Liabilities	29.39B	26.59B	32.60B	46.37B	47.04B	55.85B
Stockholders Equity	135.16B	131.16B	133.18B	119.39B	115.83B	111.44B
Cash Flow
Free Cash Flow	1.55B	1.59B	3.50B	6.64B	7.47B	8.15B
Operating Cash Flow	1.91B	1.97B	3.85B	7.12B	7.83B	8.36B
Investing Cash Flow	3.66B	3.18B	2.41B	14.87B	-1.04B	7.00B
Financing Cash Flow	-10.03B	-10.12B	-11.22B	-6.19B	-12.19B	-7.62B

CK Infrastructure Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 64.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 64.95 is above the 20-day moving average (MA) of 62.29, above the 50-day MA of 58.30, and above the 200-day MA of 53.35, indicating a bullish trend. The MACD of 1.89 indicates Negative momentum. The RSI at 70.23 is Negative, neither overbought nor oversold. The STOCH value of 82.25 is Negative, 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
0836	73 Outperform	HK$90.91B	6.91	13.23%	5.89%	1.42%	-10.32%
1038	72 Outperform	HK$153.70B	19.89	6.64%	4.50%	-10.67%	0.65%
0002	71 Outperform	HK$189.36B	16.59	10.96%	4.54%	2.02%	51.27%
2638	69 Neutral	HK$59.20B	18.70	6.56%	5.08%	2.58%	1.42%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
0003	65 Neutral	HK$142.19B	25.23	9.86%	4.94%	0.36%	2.55%
0006	62 Neutral	HK$131.28B	21.33	7.05%	5.15%	-24.63%	1.74%

CK Infrastructure Holdings Corporate Events

CK Infrastructure Sets Out Updated Board and Committee Structure for 2026

CK Infrastructure Holdings Limited has announced the current composition of its board of directors, detailing the roles of executive, non-executive, independent non-executive and alternate directors, including the chairman, deputy chairmen, group managing director and chief financial officer. The company has also set out the membership structure of its five key board committees—Audit, Remuneration, Nomination, Sustainability and Executive—specifying the chairpersons and members for each, underscoring its corporate governance framework and delineation of oversight responsibilities as of 1 January 2026.

The most recent analyst rating on (HK:1038) stock is a Buy with a HK$6.20 price target. To see the full list of analyst forecasts on CK Infrastructure Holdings stock, see the HK:1038 Stock Forecast page.

CK Infrastructure names veteran executive Koh Poh Wah as independent director and audit committee member

CK Infrastructure Holdings has appointed Ms. Koh Poh Wah as an independent non-executive director and a member of its audit committee, effective 1 January 2026, strengthening the board’s independent oversight. Ms. Koh brings more than 30 years of experience in operations management, technology, finance and business re-engineering, and currently serves as an independent non-executive director at several other Hong Kong-listed entities, including Power Assets Holdings and the manager of Fortune Real Estate Investment Trust. She has confirmed her independence under Hong Kong listing rules, holds no shares in CK Infrastructure and has no relationships with its directors or major shareholders, with her directorship subject to shareholder approval of fees and to normal rotation and re-election, underscoring the company’s attention to governance and regulatory compliance.

The most recent analyst rating on (HK:1038) stock is a Buy with a HK$6.20 price target. To see the full list of analyst forecasts on CK Infrastructure Holdings stock, see the HK:1038 Stock Forecast page.