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HONG KONG: Hong Kong port-to-telecoms conglomerate Hutchison Whampoa, controlled by tycoon Li Ka-shing, was expected to report a 64 per cent rise in net profits on Thursday, on the back of one-off asset sales.
Hutchison is expected to report on Thursday net profits of HK$32.8 billion (US$4.22 billion), up from HK$20 billion a year earlier, according to analysts.
The company, which has holdings in ports, retail, property, energy, infrastructure and telecoms, is also expected to report narrower losses in its third-generation (3G) mobile business, helping lift overall revenue.
The company was one of the world's first to introduce 3G mobile services, but the huge investments required in the technology have dragged down earnings since 2003.
Hutchison's earnings were boosted by an exceptional gain of HK$33 billion from the sale of its mobile phone network in India to the UK's Vodafone.
It also booked exceptional gains from the sale of other assets and changes in the value of its investment properties.
Without the exceptionals, Hutchison would have posted a loss due its 3G business.
Hutchison is expected to incur a loss of about HK$28 billion from the 3G business before interest and taxes, slightly lower than last year's HK$30 billion.
Citigroup analyst Anil Daswani said problems in its businesses outside Asia continue to cause problems, particularly its telecoms operations.
"Hutchison's performance in Europe continues to dog the group's overall performance. We see no signs of any improvement in the core UK and Italian businesses, and we forecast slowing subscriber numbers," said Daswani.
Cheung Kong, one of Hong Kong's largest developers also controlled by Li, is expected to post a 44 per cent growth in 2007 earnings to HK$26 billion from the previous year's HK$18.1 billion, according to analysts.
Cheung Kong, which is set to report its earnings on Thursday, owns 49.9 per cent of Hutchison. - AFP/ac
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