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Hutchinson net profit rises 40%

Hong Kong ports-to-telecoms giant Hutchison Whampoa (和記黃埔) yesterday reported a 40 percent rise in net profit last year, helped by an improved performance at its loss-making 3G mobile operations.

The company, controlled by tycoon Li Ka-shing (李嘉誠), reported a net profit of HK$20.03 billion (US$2.6 billion) for last year, up from HK$14.34 billion and just shy of analysts' estimate of HK$20.28 billion.

The group's revenue grew 11 percent to HK$267 billion.

The company's third generation operation, the 3 Group, reported narrowing losses caused by the continued growth in its customer base and revenue, with sales up 35 percent to HK$50.7 billion and losses cut by 45 percent to just under HK$20 billion.

Hutchison said its 3G customer base increased 30 percent in the year and currently stands at over 14.7 million customers worldwide.

Hutchison's ports and related services division recorded total revenue of HK$33 billion, up 10 percent, with total throughput growing 15 percent to 59.3 million TEUs (twenty-foot equivalent units).

Property giant Cheung Kong (Holdings) Ltd (長江實業), which holds 49.9 percent of Hutchison Whampoa, posted a net profit of HK$18.08 billion compared with HK$13.995 billion -- also was shy of analyst forecasts of HK$18.3 billion.

It reported sales of HK$15.35 billion, up from HK$14.36 billion in 2005.

"We anticipate a stable property market in 2007 with moderate upward pressure on property prices as buyer confidence is positively impacted by stable lending rates and an optimistic outlook for Hong Kong's economy," Li said in a statement.

Li said the property market in China continues to be the major focus of the group's expansion outside Hong Kong, adding that the long-term growth prospects for the mainland market remain positive on strong underlying demand.
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