CKI records $8.1b profit, optimistic on prospects

Staff reporter

CK Infrastructure (1038) reported a 1 percent growth in net profit last year to HK$8.1 billion and declared a final dividend of HK$1.86, bringing its full-year payout up by 0.8 percent to HK$2.58.

This marked its 28th consecutive year of dividend growth since listing in 1996.

Profit contributions from operating businesses showed a 10 percent year-on-year growth last year but higher interest costs and lower exchange gains resulted in a smaller increase in net profit, the company said in a filing yesterday.

In the UK, CKI's portfolio recorded a profit of HK$3.98 billion, a year-on-year increase of 31 percent, while profit contribution from the Australian portfolio fell by 4 percent over 2023 to HK$1.78 billion, due to higher tax charges led by amendments to thin capitalization rules.

In Hong Kong and mainland, profit contribution recorded HK$132 million, a 13 percent increase over the previous year.

CKI said its financial platform continued to be solid with cash on hand at HK$8 billion. The net debt to net total capital ratio stood at 7.8 percent as of December 2024.

Chairman Victor Li Tzar-kuoi said CKI does not approach acquisitions with a "must win" mentality as the company seeks for a balance between stability and growth. He said the company is cautiously optimistic about the businesses prospects in 2025 and the years ahead.

CKI launched its secondary listing on the London Stock Exchange in August last year.

CKI said its associate Power Assets (0006) continued to generate substantial contributions with a 2 percent growth in net income to HK$2.2 billion last year, while HK Electric recorded a slight decrease in profit contribution as there was a high deferred tax credit in 2023.

In 2024, Power Assets reported a net profit of HK$6.12 billion, marking a 2 percent growth over the previous year, while revenue dropped nearly 29 percent year-on-year to HK$919 million.

It said it will consider continued partnerships in making acquisitions with CKI and CK Asset (1113), given the strategic alignment of values.

It declared a final dividend of HK$2.04, making a full-year payout of HK$2.82.

Business in the UK, its largest market, recorded a total contribution of HK$3.2 billion, up 14.5 percent over 2023.

Meanwhile, Hutchmed (China) (0013) recorded net income of US$37.7 million (HK$294.06 million) in 2024, down nearly 63 percent from a year prior.