CKH Capital Allocation Rating Remains Standard but Ongoing Moves Are Supporting Returns

Conglomerate CK Hutchison Holdings, or CKH, is expected to continue to focus on acquisitions, spin-offs and cost containment in order to raise its profit. We think efforts to improve customer retention at its drugstore chain Watsons, and the tweaks to its portfolio of telecom activities will help drive profit on our view that the brunt of the coronavirus impact is largely isolated to 2020.