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CK Infrastructure Holdings Ltd (1038) Fair Value & Analysis

Utilities · HK · Market cap HK$150B (≈ $19.2B) · ISIN BMG2178K1009

What is CK Infrastructure Holdings Ltd really worth?

CI CK Infrastructure Holdings Ltd 1038 · HK
PriceHK$65.05
Fair ValueHK$42.74
Upside−34.3%
Quality60/100

A solid business, but trading 52% above our fair value of HK$42.74.

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Strengths

Highly profitable · 173.0% net margin
Low debt · generates free cash flow

Risks

!Weak Growth (revenue 5y −9.3 %/yr)
!Mixed vs. peers (6/14)
!Evidence only medium, so the estimate is less certain
!Weak on past: 24 out of 100

For context

·3.98% dividend yield
Evidence: Medium Range HK$33.13 – HK$49.94

Fair value as of: Aug 22, 2026

From 16 valuation models · updated 14 days ago

Share price +5.3% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (HK$49.94). The favourable scenario is already priced in.
  • Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

HK$66.55 HK$29.02 Fair Value HK$42.74 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 22, 2026.

How to read this chart

60‑month range HK$29.02 – HK$66.55 · fair‑value band HK$33.13 – HK$49.94 · the HK$65.05 price screens above the HK$42.74 fair value. Dashed = 300-day average. As of Aug 22, 2026.

Full chart & analysis →

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Analysis

CK Infrastructure Holdings Ltd (1038) currently trades at HK$65.05, while our model-based Fair Value estimate is HK$42.74, implying the stock looks roughly 52.2% overvalued today. The Quality Score stands at 60/100 (solid quality), in the Utilities sector. Bull case: the Multiples group reads highest at a median of HK$58.72 per share, and 0 of the 15 models we run sit above the HK$65.05 price. Bear case: the DCF Models group reads lowest at HK$5.81, and 15 of the 15 models stay below the price. Evidence for this calculation is medium.

Trailing-twelve-month revenue stands at HK$4.8B. Revenue declined 12.1% year over year. It earns a return on equity of 6.1%. Net debt stands at HK$23.6B. Fundamentals as of Aug 22, 2026

Our scenario range runs from HK$33.13 (bear case) to HK$49.94 (bull case); at HK$65.05, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 1% below its 52-week high and 34% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at −37% fair-value upside, at −34%, 1038 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF HK$2.97 HK$5.81 HK$11.08 76
Owner Earnings HK$29.53 HK$42.79 HK$67.37 76
Residual Income HK$40.93 HK$42.89 HK$45.45 76
All 16 models by family
DCF Models
FCF DCF HK$2.97 HK$5.81 HK$11.08 76
Owner Earnings HK$29.53 HK$42.79 HK$67.37 76
5Y EBITDA Exit HK$0.1800 HK$1.26 72
5Y P/E Exit HK$23.05 HK$41.18 HK$62.74 69
10Y Revenue Exit HK$0.3800 HK$0.8300 HK$1.22 65
10Y EBITDA Exit HK$0.7300 HK$1.42 HK$2.07 67
10Y P/E Exit HK$15.10 HK$26.78 HK$38.17 63
Earnings-Based
Graham-Dodd HK$23.49 HK$28.71 HK$32.30 67
Multiples
P/E Multiple HK$46.63 HK$62.17 HK$77.72 63
P/S Multiple HK$3.29 HK$4.38 HK$5.48 58
P/B Multiple HK$44.04 HK$58.72 HK$73.40 55
Asset-Based
NCAV (Graham) HK$25.38 HK$34.01 HK$50.77 54
Growth DCF
Growth DCF HK$3.31 HK$6.07 HK$10.79 75
Rev-Margin DCF HK$0.2100 69
Economic Profit
Residual Income HK$40.93 HK$42.89 HK$45.45 76
Growth Earnings
Growth-Adj P/E HK$33.13 HK$47.34 HK$61.54 67

Widest divergence: Multiples (HK$58.72) versus DCF Models (HK$5.81). Highest evidence: FCF DCF (76).

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Key figures & financial health

P/E ratio 17.3 as of Jul 2, 2026
P/S ratio 34.0 P/E × margin
EPS (TTM) HK$1.73 price ÷ EPS = P/E 17.3
Dividend yield 4.0% payout 150%
Net margin 173% TTM
Return on equity 6.1% TTM
More key figures
Profitability
Return on assets (EBIT) 0.9% avg 5y
Operating margin −2.5% TTM
Growth
Revenue (TTM) HK$4.8B TTM
Revenue growth (YoY) −12.1% 3y avg −12.6%
EPS growth (YoY) +3.0%
Balance sheet & cash flow
Free cash flow HK$1.9B FY2025
Net debt HK$23.6B FY2025 · ≈ 12.6 yrs of FCF

Figures from reported company fundamentals · as of Aug 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 58 · Market factors (momentum, volatility) 71

Profitability 36
Margins and returns on capital today
Quality Growth 20
Are margins and returns improving?
Cashflow 71
Earnings quality: real cash, not paper profit
Fin. Strength 62
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 86
Calm price path (market factor)
Momentum 56
Price trend over the last 3–12 months (market factor)
52W Momentum 81
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

CK Infrastructure Holdings Limited, an infrastructure company, invests in, develops, and operates infrastructure businesses in Hong Kong, Mainland China, the United Kingdom, Continental Europe, Australia, New Zealand, Canada, and the United States.

Full company description

CK Infrastructure Holdings Limited, an infrastructure company, invests in, develops, and operates 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, project management, and infrastructure-related businesses. It is also involved in the production and laying of asphalt; manufacture, distribution, and sale of cement; and property investment, securities investment, and waste management activities. 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 based in Central, Hong Kong. CK Infrastructure Holdings Limited operates as a subsidiary of CK Hutchison Holdings Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

CK Infrastructure Holdings Ltd reported revenue of HK$4.4B in FY2025 versus HK$7.0B in FY2021, a compound −11.0%/yr. Reported net income was HK$8.7B in FY2025, compounding +3.7%/yr from FY2021.

Growth Quality 36/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$4.4B
Latest YoY
−11.5%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−12.6%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−9.3%
Avg. revenue growth/yr (28Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.1%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+7.0% (3.0 + 4.0)
Revenue −11.0%/yr
FY21 HK$7.0B
FY22 HK$6.6B
FY23 HK$6.0B
FY24 HK$5.0B
FY25 HK$4.4B
Net income +3.7%/yr
FY21 HK$7.5B
FY22 HK$7.7B
FY23 HK$8.0B
FY24 HK$8.1B
FY25 HK$8.7B
Character of growth · EPS growth decomposed (2014-2025) −8.1 % p.a.
Revenue per share −1.1 %

of which total revenue −1.0 % · buybacks/dilution −0.1 %

EBIT margin −8.5 %
Tax rate −0.2 %
Residual (interest, one-offs) +1.7 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

1038 screens 52% overvalued. Compare with NextEra Energy, Inc →

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Cite: Fair Value Calculator (2026). "CK Infrastructure Holdings Ltd Fair Value". https://www.fairvalue-calculator.com/stock/1038

Peer Group

Utilities - Regulated Electric · 153 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 60 · Top 25%
Fair Value upside −34% · Below median
Return on equity (TTM) 6% · Below median
Return on assets 0% · Bottom 25%
Net margin (TTM) 173% · Top 25%
Operating margin (TTM) −2% · Bottom 25%
Revenue growth −12% · Bottom 25%
Dividend yield (TTM) 4.0% · Above median
Debt / equity 0.14× · Lower than 75% of peers

Valuation Multiples vs Utilities - Regulated Electric median · lower = cheaper

P/E (TTM) 17.3× · Cheaper than median
P/B 1.18× · Cheaper than median
P/S (TTM) 31.49× · Pricier than 75% of peers
P/FCF 10.2× · Pricier than 75% of peers
PEG 4.06× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE0 · sector 32
PAST24 · sector 39
HEALTH93 · sector 52
DIVIDEND80 · sector 65

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Utilities - Regulated Electric stocks, each showing price versus our Fair Value estimate (as of Aug 22, 2026).

Stock Price Fair Value vs Fair Value
NextEra Energy, Inc NEE $83.47 $32.94 −61%
The Southern Company SO $88.25 $58.81 −33%
Duke Energy Corporation DUK $120.25 $74.89 −38%
National Grid plc NGG $80.68 $63.94 −21%
American Electric Power Company AEP $122.96 $77.23 −37%
Dominion Energy, Inc D $66.01 $46.34 −30%
Entergy Corporation ETR $105.75 $52.92 −50%
Xcel Energy Inc XEL $76.34 $44.61 −42%
Exelon Corporation EXC $43.96 $37.60 −14%
Endesa, S.A ELE €42.30 €25.72 −39%

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Frequently asked questions

Is CK Infrastructure Holdings Ltd (1038) overvalued or undervalued?
As of Aug 22, 2026, our model estimates a fair value of HK$42.74 versus a price of HK$65.05, about −34% upside (overvalued).
What is the fair value of 1038?
Our model-based fair value for CK Infrastructure Holdings Ltd is HK$42.74 (as of Aug 22, 2026), built from audited fundamentals. The current price: HK$65.05.
What is the quality score of 1038?
CK Infrastructure Holdings Ltd has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of CK Infrastructure Holdings Ltd (1038)?
CK Infrastructure Holdings Ltd reported trailing-twelve-month revenue of about HK$4.8B (latest available figure, as of Aug 22, 2026).
What is the net profit margin of 1038?
The net profit margin of CK Infrastructure Holdings Ltd is about 173.0%, meaning it keeps roughly 173.0% of revenue as net income. Based on the latest reported figures.
Does CK Infrastructure Holdings Ltd pay a dividend?
CK Infrastructure Holdings Ltd currently shows a dividend yield of about 3.98% relative to its recent price (as of Aug 22, 2026).
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