Financial analysts said they were positive on the outlook for CK Hutchison Holdings after the conglomerate said its controversial ports deal, including two Panama Canal ports, was on track even though it may take longer than expected.
US lender JPMorgan said CK Hutchison eased investor concerns after group co-managing director Frank Sixt gave an update on the port sale in a first-half results briefing on Thursday.
“Management sounded hopeful that the global ports disposal deal would proceed” although completion may only happen in 2026 at the earliest, said JPMorgan analysts Karl Chan, Venus Choi and Jocelyn Gao in a research note on Friday.
“This should ease investors’ biggest concern,” they wrote. “With or without the ports disposal, we see solid fundamentals as CK Hutchison managed to drive growth in all its key business segments.”
Sixt said there was “a reasonable chance discussions will lead to a deal that is good for all parties – ourselves included – and most importantly be approved by all relevant authorities”. However, he added that the deal could not be completed this year due to its complexity and size.
In March, CK Hutchison revealed a US$23 billion deal to sell its 43 overseas ports, including two at the Panama Canal, to a group led by US asset management giant BlackRock. The move, which was criticised by pro-Beijing analysts, came after US President Donald Trump vowed to “take back” the Panama Canal from what he called “Chinese influence”.
