CK Hutchison profit misses, with outlook dented by Iran war

[HONG KONG] CK Hutchison Holdings reported a weaker-than-expected profit for 2025, even as the Iran conflict ripples through global trade and adds fresh strain to the conglomerate’s ports and retail businesses.

The company founded by billionaire Li Ka-shing reported HK$11.8 billion (S$1.9 billion) in net income for the year ended December, lower than analyst expectations for HK$21.7 billion. Revenue came in at HK$507.3 billion, compared with HK$476.7 billion a year earlier. It announced a final dividend of HK$1.6 per share.

Now led by Li’s son Victor, CK Hutchison is contending with mounting geopolitical headwinds following last year’s earnings decline, which was driven by non-cash losses. Escalating tensions in the Middle East are threatening its ports division, which operates seven facilities in the region and is exposed to potential trade disruptions. At the same time, the prospect of higher global inflation risks eroding consumer confidence, weighing on its retail arm – the group’s largest revenue contributor – and further clouding the outlook.

The group will continue to look for opportunities to enhance value for shareholders through “major transaction activity,” CK Hutchison said in a filing on Thursday (Mar 19). It noted that performance of core operations, including ports and retail, was actually better, with both generating higher revenue and operating profit than 2024.

CK Hutchison’s diversified portfolio could help cushion the impact of escalating conflict in Iran. The group holds a roughly 17 per cent stake in Canadian oil company Cenovus Energy, positioning it to benefit from stronger crude demand and higher prices amid supply disruption. Li Ka-shing separately owns about 12 per cent of Cenovus.

At the same time, the conglomerate is stepping up divestments to unlock asset value and limit geopolitical risk, including February’s £10.5 billion (roughly S$18 billion) sale of the UK’s largest power-distribution network. Still, rising US-China tensions and intensifying regulatory scrutiny threaten to complicate further dealmaking.

Ports sale

Year-long talks to sell its 43 global ports for more than US$19 billion in cash have made little progress, as the assets – particularly two along the strategic Panama Canal – have become entangled in the rivalry between Washington and Beijing. The Iran conflict has added another layer of uncertainty, dimming prospects for a political breakthrough in the negotiations. President Donald Trump said a planned summit with China’s Xi Jinping would be postponed amid the tensions.

Meanwhile, CK Hutchison is preparing a listing of its retail arm AS Watson Group in Hong Kong and London that could raise at least US$2 billion as soon as this year, Bloomberg reported in January. The group has been advised to proceed cautiously with deals given the delicate geopolitical environment, and to notify Chinese regulators on the deal because the unit has operations in the mainland, Bloomberg has reported.

The group is also mulling a potential initial public offering or partial sale of its global telecom business, though the sector faces stringent anti-trust reviews. Any deal would come as Hong Kong’s fundraising market faces worsening sentiment after Beijing tightened rules on overseas-incorporated Chinese firms seeking IPOs in the city, though local companies like CK Hutchison are unlikely to be directly affected.

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Separately, CK Asset, the Li family’s property arm, reported net income of HK$10.8 billion last year, compared to HK$13.7 billion in 2024.

Hong Kong’s residential market is showing signs of recovery, with transaction volumes picking up. JPMorgan Chase expects home prices to rise as much as 15 per cent this year, driven by population inflows. BLOOMBERG