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13.58 (1y: +14%)
Market Cap 31.07 B P/E(ttm) 7.50
Enterprise Value 37.8 B P/B 0.70
CHEUY- OTCPK (USA)
Cheung Kong Holdings, Ltd.
  • Currently 2/5
Business Predictability Rank: 2-Star (On Watch)
Back Testing Results:
Average gain of all 2-Star stocks: 6% per year.
% of Stocks that are in still loss if held for 10yrs: 16%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$13.58
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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength

vs
industry		 vs
history
Cash to Debt 0.492
CHEUY's Cash to Debt is ranked higher than
68% of the 1361 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.26 vs. CHEUY: 0.492 )
CHEUY' s 10-Year Cash to Debt Range
Min: 0.08   Max: 1.14
Current: 0.49
0.08
1.14
Equity to Asset 0.843
CHEUY's Equity to Asset is ranked higher than
94% of the 1361 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.41 vs. CHEUY: 0.843 )
CHEUY' s 10-Year Equity to Asset Range
Min: 0.8   Max: 0.9
Current: 0.84
0.8
0.9
F-Score: 4
Z-Score: 3.89
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth

vs
industry		 vs
history
Operating margin (%) 40.40
CHEUY's Operating margin (%) is ranked higher than
85% of the 1361 Companies
in the Global Real Estate - General industry.

( Industry Median: 14.70 vs. CHEUY: 40.40 )
CHEUY' s 10-Year Operating margin (%) Range
Min: 16.5   Max: 101.4
Current: 40.4
16.5
101.4
Net-margin (%) 152.1
CHEUY's Net-margin (%) is ranked higher than
98% of the 1361 Companies
in the Global Real Estate - General industry.

( Industry Median: 9.90 vs. CHEUY: 152.1 )
CHEUY' s 10-Year Net-margin (%) Range
Min: 51.9   Max: 1139.1
Current: 152.1
51.9
1139.1
ROE (%) 9.5
CHEUY's ROE (%) is ranked higher than
77% of the 1361 Companies
in the Global Real Estate - General industry.

( Industry Median: 4.80 vs. CHEUY: 9.5 )
CHEUY' s 10-Year ROE (%) Range
Min: 4.3   Max: 39.4
Current: 9.5
4.3
39.4
ROA (%) 8
CHEUY's ROA (%) is ranked higher than
92% of the 1361 Companies
in the Global Real Estate - General industry.

( Industry Median: 2.20 vs. CHEUY: 8 )
CHEUY' s 10-Year ROA (%) Range
Min: 3.7   Max: 33.7
Current: 8
3.7
33.7
ROC (Joel Greenblatt) (%) 11.80
CHEUY's ROC (Joel Greenblatt) (%) is ranked higher than
74% of the 1361 Companies
in the Global Real Estate - General industry.

( Industry Median: 3.40 vs. CHEUY: 11.80 )
CHEUY' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 3   Max: 41.1
Current: 11.8
3
41.1
Revenue Growth (%) 1.3
CHEUY's Revenue Growth (%) is ranked higher than
76% of the 1361 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.00 vs. CHEUY: 1.3 )
CHEUY' s 10-Year Revenue Growth (%) Range
Min: -17.1   Max: 30.5
Current: 1.3
-17.1
30.5
EBITDA Growth (%) -12.1
CHEUY's EBITDA Growth (%) is ranked lower than
71% of the 1361 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.00 vs. CHEUY: -12.1 )
CHEUY' s 10-Year EBITDA Growth (%) Range
Min: -22   Max: 58.9
Current: -12.1
-22
58.9
EPS Growth (%) 12.7
CHEUY's EPS Growth (%) is ranked higher than
86% of the 1361 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.00 vs. CHEUY: 12.7 )
CHEUY' s 10-Year EPS Growth (%) Range
Min: -38   Max: 31.2
Current: 12.7
-38
31.2
» CHEUY's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades
Q2 2012

CHEUY Guru Trades in Q2 2012

Ken Fisher 55,418 sh (-99.53%)
Martin Whitman 17,667,000 sh (-41.43%)
» More
Q3 2012

CHEUY Guru Trades in Q3 2012

Martin Whitman 10,393,450 sh (+50.64%)
Martin Whitman 16,220,000 sh (+50.64%)
Ken Fisher 29,506 sh (-46.76%)
» More
Q4 2012

CHEUY Guru Trades in Q4 2012

Ken Fisher 14,649 sh (-50.35%)
Martin Whitman 10,149,000 sh (-2.35%)
» More
Q1 2013

CHEUY Guru Trades in Q1 2013

Ken Fisher Sold Out
Martin Whitman 6,451,000 sh (-36.44%)
» More
» Details

Insider Trades

Latest Guru Trades with CHEUY

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Martin Whitman 2013-01-31 Reduce -36.44%2.37%$14.31 - $17.03 $ 14.1-9%6451000
Martin Whitman 2012-07-31 Add 50.64%3.08%$11.17 - $13.4 $ 14.116%16220000
Martin Whitman 2012-04-30 Reduce -41.43%4.76%$12.45 - $25.85 $ 14.10%17667000
Premium More recent guru trades are included for Premium Members only!!
» Financial Charts

Peter Lynch Chart

Guru Investment Theses on Cheung Kong Holdings, Ltd.

Third Avenue Management Commentary on Cheung Kong - May 24, 2012

Cheung Kong (CHEUY)


Cheung Kong reported a 72% increase in 2011 earnings per share and 16% increase in NAV per share to HK$132.20. The company’s results benefitted from gains on timely resource conversions in early 2011 consisting of sales of stakes of ports and commercial real estate assets in separate IPOs. Although many analysts exclude one-time gains like these in valuing a company, they are important in our analysis at Third Avenue as they demonstrate management’s willingness to be opportunistic in not only buying but also selling assets to increase NAV. Additionally, the large gains confirm our belief that many of the company’s assets are worth considerably more than stated book value. Cheung Kong’s underlying profit increased 15%, driven by a 26% increase in contribution from property sales and 13% increase in property leasing income.

The company also benefitted from strong results at 50%-owned subsidiary Hutchison Whampoa, whose common stock is also held in the Fund. Hutchison Whampoa’s revenue and earnings before interest and taxes (“EBIT”) increased 22% and 33%, respectively. The growth was broad based including Ports (revenue up 12%; EBIT up 14%), Retail (revenue up 17%; EBIT up 19%), Property (revenue up 7%; EBIT up 8%), Infrastructure (revenue up 67%; EBIT up 57%) and Energy (revenue up 41%; EBIT up 79%). The company appears to be taking advantage of depressed economic conditions in Europe as it made a significant acquisition its infrastructure business in 2011 (Northumbrian Water group Limited) and announced the acquisition of Orange Australia in 2012 to bolster its telecommunications operations. Cheung Kong maintained a very strong financial position, with HK$20 billion in cash and a net debt to capital ratio of only 7.6%.

Cheung Kong maintained a very strong financial position with HK$20 billion in cash and a net debt to capital ratio of only 7.6%. Cheung Kong Common traded at a 22% discount to reported net asset value at quarter end, compared to an average premium to book value of 1% over the last five years. Chairman Lee Ka-shing spent $14 million during the first four months of 2012 buying Cheung Kong Common in the open market and now owns 43.3% of the outstanding shares.


Check out Third Avenue Management latest stock trades

Ratios

vs
industry		 vs
history
P/E(ttm) 7.50
CHEUY's P/E(ttm) is ranked higher than
81% of the 994 Companies
in the Global Real Estate - General industry.

( Industry Median: 12.70 vs. CHEUY: 7.50 )
CHEUY' s 10-Year P/E(ttm) Range
Min: 4.43   Max: 26.11
Current: 7.5
4.43
26.11
P/B 0.70
CHEUY's P/B is ranked higher than
74% of the 1140 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.93 vs. CHEUY: 0.70 )
CHEUY' s 10-Year P/B Range
Min: 0.54   Max: 1.64
Current: 0.7
0.54
1.64
P/S 11.40
CHEUY's P/S is ranked lower than
72% of the 1205 Companies
in the Global Real Estate - General industry.

( Industry Median: 2.54 vs. CHEUY: 11.40 )
CHEUY' s 10-Year P/S Range
Min: 5.91   Max: 62.03
Current: 11.4
5.91
62.03
EV-to-EBIT 32.3
CHEUY's EV-to-EBIT is ranked lower than
63% of the 918 Companies
in the Global Real Estate - General industry.

( Industry Median: 14.28 vs. CHEUY: 32.3 )
CHEUY' s 10-Year EV-to-EBIT Range
Min: 10.4   Max: 222.8
Current: 32.3
10.4
222.8
PEG 0.6
CHEUY's PEG is ranked higher than
65% of the 353 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.58 vs. CHEUY: 0.6 )
CHEUY' s 10-Year PEG Range
Min: 0.15   Max: 1.73
Current: 0.6
0.15
1.73
Shiller P/E 8.2
CHEUY's Shiller P/E is ranked lower than
100% of the Companies
in the Global Real Estate - General industry.

( Industry Median: vs. CHEUY: 8.2 )
CHEUY' s 10-Year Shiller P/E Range
Min: 6.28   Max: 27.22
Current: 8.2
6.28
27.22

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 2.20
CHEUY's Dividend Yield is ranked higher than
76% of the 1361 Companies
in the Global Real Estate - General industry.

( Industry Median: 1.22 vs. CHEUY: 2.20 )
CHEUY' s 10-Year Dividend Yield Range
Min: 1.36   Max: 4.19
Current: 2.2
1.36
4.19
Dividend growth (3y) 6.6
CHEUY's Dividend growth (3y) is ranked higher than
94% of the 1361 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.00 vs. CHEUY: 6.6 )
CHEUY' s 10-Year Dividend growth (3y) Range
Min: 1.2   Max: 7.5
Current: 6.6
1.2
7.5
Yield on cost (5-Year) 3.13
CHEUY's Yield on cost (5-Year) is ranked higher than
84% of the 1361 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.86 vs. CHEUY: 3.13 )
CHEUY' s 10-Year Yield on cost (5-Year) Range
Min: 1.93   Max: 5.96
Current: 3.13
1.93
5.96

Valuation & Return

vs
industry		 vs
history
Price/Net Cash 19.6
CHEUY's Price/Net Cash is ranked lower than
99% of the 100 Companies
in the Global Real Estate - General industry.

( Industry Median: 9.00 vs. CHEUY: 19.6 )
CHEUY' s 10-Year Price/Net Cash Range
Min: 0   Max: 0
Current: 19.6
Price/Net Current Asset Value 6.3
CHEUY's Price/Net Current Asset Value is ranked higher than
57% of the 619 Companies
in the Global Real Estate - General industry.

( Industry Median: 4.80 vs. CHEUY: 6.3 )
CHEUY' s 10-Year Price/Net Current Asset Value Range
Min: 5.5   Max: 25.6
Current: 6.3
5.5
25.6
Price/Tangible Book 0.7
CHEUY's Price/Tangible Book is ranked higher than
77% of the 1025 Companies
in the Global Real Estate - General industry.

( Industry Median: 1.00 vs. CHEUY: 0.7 )
CHEUY' s 10-Year Price/Tangible Book Range
Min: 0.7   Max: 1.4
Current: 0.7
0.7
1.4
Price/DCF (Projected) 0.9
CHEUY's Price/DCF (Projected) is ranked higher than
71% of the 316 Companies
in the Global Real Estate - General industry.

( Industry Median: 1.10 vs. CHEUY: 0.9 )
CHEUY' s 10-Year Price/DCF (Projected) Range
Min: 0.8   Max: 2
Current: 0.9
0.8
2
Price/Median PS Value 0.8
CHEUY's Price/Median PS Value is ranked higher than
81% of the 1019 Companies
in the Global Real Estate - General industry.

( Industry Median: 1.10 vs. CHEUY: 0.8 )
CHEUY' s 10-Year Price/Median PS Value Range
Min: 0.4   Max: 3.2
Current: 0.8
0.4
3.2
Price/Peter Lynch Fair Value 0.6
CHEUY's Price/Peter Lynch Fair Value is ranked higher than
60% of the 177 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.40 vs. CHEUY: 0.6 )
CHEUY' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.2   Max: 1.3
Current: 0.6
0.2
1.3
Price/Graham Number 0.2
CHEUY's Price/Graham Number is ranked higher than
90% of the 844 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.80 vs. CHEUY: 0.2 )
CHEUY' s 10-Year Price/Graham Number Range
Min: 0.4   Max: 1.1
Current: 0.2
0.4
1.1
Earnings Yield (Greenblatt) 3.10
CHEUY's Earnings Yield (Greenblatt) is ranked higher than
57% of the 1361 Companies
in the Global Real Estate - General industry.

( Industry Median: 3.90 vs. CHEUY: 3.10 )
CHEUY' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.4   Max: 9.6
Current: 3.1
0.4
9.6
Forward Rate of Return (Yacktman) 13.35
CHEUY's Forward Rate of Return (Yacktman) is ranked higher than
93% of the 1361 Companies
in the Global Real Estate - General industry.

( Industry Median: 0.00 vs. CHEUY: 13.35 )
CHEUY' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -35.8   Max: 73.5
Current: 13.35
-35.8
73.5

Business Description

Cheung Kong is a property development and strategic investment corporation. The firm focuses on the sale and development of real estate properties in Hong Kong as well as in mainland China. Cheung Kong also has interests in Internet and information technology companies as well as life sciences and biotech firms.
Company Website
Industry: Real Estate - General
Compare:SUHJY, MITEY, BAM, HLDVF, HLPPY
Traded in other countries:00001.Hongkong, CHE.Germany
» More Articles for OTCPK:CHEUY

Headlines

Articles On GuruFocus.com
Third Avenue Management Commentary on Cheung Kong May 24 2012 
Hong Kong Update – Strong Financial Results: Third Avenue Management May 24 2012 
Marty Whitman may b Sep 24 2011 
Third Avenue Fund Comment on POSCO (PKX) and Henderson Land Development Co. and Cheung Kong Holdings Sep 09 2010 
Bigjo note on CHEUY Apr 14 2009 
International Investing Following In Buffett’s Footsteps Mar 29 2007 
Third Avenue Scours the Globe for Investments Mar 26 2007 
Martin Whitman Buys Microsoft Corp., Fair Isaac Corp., Sells ACMAT CORP Sep 25 2006 
Attractive Real Estate Jun 27 2006 

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