CK Hutchison H1 profit rises 4.3%, aims for solid H2 performance

CK Hutchison H1 profit rises 4.3%, aims for solid H2 performance
FILE PHOTO: FILE PHOTO: The company logo of CK Hutchison Holdings is displayed at a news conference in Hong Kong, China March 17, 2016. REUTERS/Bobby Yip/File Photo/File Photo

HONG KONG : CK Hutchison, the ports-to-telecoms arm of retired billionaire Li Ka-shing, said on Thursday its net profit in the first six months rose 4.3 per cent, helped by high energy prices, steady contributions from infrastructure businesses.

Profit rose to HK$19.09 billion ($2.43 billion) from HK$18.3 billion a year earlier, after accounting adjustments.

“The group will continue to aim to achieve growth in recurring earnings and increase shareholder return while maintaining a strong financial position,” Chairman Victor Li said in a statement.

The conglomerate said it is well-positioned to deliver solid performance in the second half and in the years ahead.

“Looking ahead to the second half of the year, the European businesses should continue to deliver robust performances similar to last year, while Asian operations are also expected to recover well,” Li said, commenting on its retail business.

“The mainland market will likely continue to be challenging,” he added.

In June, CK Hutchison said investment giant KKR & Co would invest $1 billion for a 25 per cent stake in its British utility company, Northumbrian Water Group, which it jointly owned with its affiliates CK Asset and CK Infrastructure.

CK Hutchison said earlier on Thursday that CK Group had entered into negotiations on the sale of its less than 4 per cent remaining stake in AMTD Group, the parent of AMTD Digital.

CK Asset, a major property developer in Hong Kong which also has interests in infrastructure and utility assets overseas, reported a 54.8 per cent rise in first-half net profit to HK$12.94 billion, and said it would pursue investments to strengthen recurring income base.

Shares of CK Hutchison ended up 0.9 per cent on Thursday ahead of the results, while CK Asset gained 0.4 per cent. The Hang Seng Index closed 2.1 per cent higher.

($1 = 7.8497 Hong Kong dollars)

 

 

Source: Reuters