CK Hutchison says 2016 profit up 6 per cent

HONG KONG: CK Hutchison Holdings Ltd, the ports-to-telecoms arm of billionaire businessman Li Ka-shing, said on Wednesday net profit rose 6 per cent in 2016, helped by stable earnings from its infrastructure, telecommunications and retail units.

Li, known as Superman for his deal-making savvy, has rapidly increased the pace of overseas acquisitions in recent years, with Britain high on his shopping list.

January-December profit reached HK$33.01 billion ($4.25 billion), slightly higher than the HK$32 billion average of 11 estimates from analysts polled by Reuters. It posted profit of HK$31.17 billion in 2015. Total revenue fell 6 per cent to HK$372.69 billion. CK Hutchison has significant investments in Britain and also the European Union. In February, it agreed to buy PCCW Ltd’s British broadband Internet business for £300 million.

In September, it won EU approval to merge its Italian mobile unit with that of VimpelCom Ltd, after pledging to help French maverick Iliad SA enter the Italian market.

Also on Wednesday, Li’s Cheung Kong Property Holdings Ltd reported a 16 per cent rise in 2016 full-year core profit due to a solid performance across the group’s property businesses.

Hong Kong property prices hit a record high in January despite government attempts to cool the market. Li, speaking at an earnings press conference after the results were announced, said he did not expect Hong Kong property prices to fall in the next one to two years. — Reuters