Operating Margin

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Price: 6.734 EUR 2.9% Market Closed

Market Cap: 25.8B EUR

9.4%

Declining

by 0.4%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

9.4%

Operating Income

HK$26.8B

Revenue

HK$284B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

9.4%

Operating Income

€26.8B

Revenue

HK$284B

Peer Comparison

Country		Company	Market Cap	Operating Margin
HK		CK Hutchison Holdings Ltd HKEX:1	235B HKD	Loading...
US		General Electric Co NYSE:GE	333.9B USD	Loading...
DE		Siemens AG XETRA:SIE	198.5B EUR	Loading...
JP		Hitachi Ltd TSE:6501	23.5T JPY	Loading...
US		Honeywell International Inc NASDAQ:HON	138B USD	Loading...
ZA	B	Bidvest Group Ltd JSE:BVT	83.6B Zac	Loading...
US		3M Co NYSE:MMM	82.3B USD	Loading...
CN		CITIC Ltd HKEX:267	348.2B HKD	Loading...
US	R	Roper Technologies Inc F:ROP	36.7B EUR	Loading...
KR		Samsung C&T Corp KRX:028260	48.9T KRW	Loading...
HK		Jardine Matheson Holdings Ltd SGX:J36	21.8B USD	Loading...

Market Distribution

Min	-36 930 000%
30th Percentile	-5.1%
Median	2.5%
70th Percentile	9.4%
Max	8 238.3%

Other Profitability Ratios

CK Hutchison Holdings Ltd
Glance View

Economic Moat

None

Market Cap

25.8B EUR

Industry

Industrial Conglomerates

CK Hutchison Holdings Ltd., a sprawling conglomerate headquartered in Hong Kong, orchestrates a symphony of diverse business ventures that ripple across continents and sectors. Emerging from the long lineage of the influential Li family, with Li Ka-shing at its helm for much of its storied history, this corporate behemoth has its roots in the regions' transformative years of trade expansion and industrialization. CK Hutchison has constructed a vast investment portfolio that stretches into the core pillars of modern infrastructure – ports, telecommunications, retail, energy, and more. This diversification plays a critical role in mitigating risks while harnessing global opportunities, establishing the company as a formidable global operator. At the heart of CK Hutchison's operations is its robust infrastructure segment, including its ports and related services, which form one of the world's largest container terminal networks. This segment not only provides steady cash flow but also propels the company into the critical logistics arteries of global trade. Meanwhile, the telecommunications arm capitalizes on the ever-growing demand for connectivity, boasting millions of subscribers across Europe, Asia, and Australia. Retail operations, prominently featuring the Watsons brand, exploit consumer markets with health and beauty products, proliferating through a vast network of stores. Its utilities and energy divisions, although more subdued, vitalize the revenue stream with investments in energy distribution and production. Collectively, these segments create a synergistic earning structure; CK Hutchison adeptly deploys its strategic presence to navigate complex markets, ensuring sustained profitability in an ever-evolving economic landscape.

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

CK Hutchison Holdings Ltd
SWB:2CK

Peer Comparison

Market Distribution

Other Profitability Ratios

CK Hutchison Holdings Ltd
Glance View

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CK Hutchison Holdings Ltd SWB:2CK