Cheung Kong Infrastructure Holdings Limited
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Cheung Kong Infrastructure Financial Snapshot
Holdings Limited Operating Performance
Fast Facts The company reported revenues of US$362.16 million
during 2010, with a CAGR of 11.48% during 2006–
2010. Its revenue grew at an annual rate of 28.51%
Headquarters Address 12th Floor, Hong Kong, ,Hong Kong
over the previous fiscal year. In 2010, the company
recorded an operating margin of 44.71%, as against
Telephone + 852 21223133
98.08% in 2009.
Fax + 852 25014550
Revenue and Margins
Website www.cki.com.hk
Ticker Symbol, Stock Exchange 1038, Hong Kong Stock Exchange
Number of Employees 1,028
Fiscal Year End December
Revenue (in US$ million) 362.16
Revenue (in HKD million) 2,814.00
Return on Equity
SWOT Analysis The company recorded a return on equity (ROE) of
11.01% for 2010, as compared to its peers, Hsin
Strengths Weaknesses Chong Construction Group Ltd. (Ticker: 0404),
Hanison Construction Holdings Ltd. (Ticker: 0896)
Expanding Operating Margin and ROE Declining Market Share in Sector and Yau Lee Holdings Limited (Ticker: 0406), which
recorded ROEs of 19.56%, 14.56% and 4.32%
respectively. The company reported an operating
Long Term Agreements Underutilization of Resources margin of 44.71% in 2010.
Strong Liquidity Position
Return on Equity
Opportunities Threats
China’s Rapid Urbanization Increasing Labor Costs
Development in the water transport Regulated Environment
Growth in Renewable Energy Sector Sluggish Growth of UK Economy
Liquidity Position
The company reported a current ratio of 2.06 in 2010,
as compared to its peers, Hsin Chong Construction
Group Ltd., Hanison Construction Holdings Ltd. and
Yau Lee Holdings Limited, which recorded current
ratios of 1.08, 1.07 and 1.69 respectively. As of
December 2010, the company recorded cash and
short-term investments of worth US$699.87 million,
against US$158.04 million current debt. The company
reported a debt to equity ratio of 0.19 in 2010 as
compared to its peers, Hsin Chong Construction
Group Ltd., Hanison Construction Holdings Ltd. and
Yau Lee Holdings Limited, which recorded debt to
equity ratios of 0.62, 0.84 and 0.40 respectively.
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Cheung Kong Infrastructure Holdings Limited - SWOT Page 1
Profile
Cheung Kong Infrastructure Holdings Limited
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators .................................................................................................................10
2.2.1 Revenue and Operating Profit .........................................................................................................................10
2.2.2 Asset, Liabilities and Capex .............................................................................................................................11
2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................12
2.2.4 Operational Efficiency ......................................................................................................................................13
2.2.5 Solvency ..........................................................................................................................................................14
2.2.6 Valuation ..........................................................................................................................................................15
2.3 Competitive Benchmarking ..................................................................................................................................16
2.3.1 Market Capitalization .......................................................................................................................................17
2.3.2 Efficiency ..........................................................................................................................................................18
2.3.3 Capital Expenditure ..........................................................................................................................................19
2.3.4 Valuation ..........................................................................................................................................................20
2.3.5 Turnover – Inventory and Asset .......................................................................................................................21
2.3.6 Liquidity ............................................................................................................................................................22
3 Mergers & Acquisitions and Partnerships ........................................................................................... 23
3.1 M&A and Partnerships Strategy ...........................................................................................................................23
4 SWOT Analysis .........