Hong Kong's Cheung Kong 2006 net profit up 29 pct, driven by Hutchison - UPDATE |
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Thu, 22 Mar 2007 07:35
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HONG KONG (XFN-ASIA) - Cheung Kong (Holdings) Ltd reported a 29 pct rise in 2006 net profit to 18.08 bln hkd, driven mainly by higher contributions from associate Hutchison Whampoa and strong property development income.The earnings were within the forecasts of analysts surveyed by XFN-Asia, which had ranged from 16.86 bln to 18.16 bln hkd.Total revenue for 2006 stood at 15.35 bln hkd, up from 14.36 bln a year earlier.Cheung Kong said its share of profit from associate Hutchison Whampoa rose 40 pct to 10 bln hkd from 7.17 bln a year earlier. Profit before such contribution stood at 8.07 bln hkd, up 18 pct from 6.83 blna year earlier.Revenue from property sales, including those of jointly controlled entities, was 13.796 bln hkd, up from 12.904 bln in 2005.Profit contribution from property sales was also strong at 5.58 bln hkd, up from 3.31 bln a year earlier, it said.Property sales in 2006 comprised mainly of sale of residential units of The Pacifica in Hong Kong and Cairnhill Crest in Singapore, both completed in 2005, and sale of residential units of property projects completed during 2006, including Metro Town and The Legend at Jardine's Lookout in Hong Kong.It noted that the contribution margin for property sales recognised during the year was better than last year as demand for residential properties in Hong Kong remained strong, particularly in the luxury sector, as interest rates became more stable in the second half of the year.Profit contribution from property rentals, including share from jointly controlled entities, stood at 936 mln hkd in 2006, up 35 mln from a year earlier.Chairman Li Ka-shing said a slowdown in property activities was seen in the first half of 2006, but the steady pick-up of transactions in the latter part of the year was a clear sign of improvingmarket sentiment.'We anticipate a stable property market in 2007 with moderate upward pressure on property prices as buyer's confidence is positively impacted by stable lending rates and an optimistic outlook for Hong Kong's economy,' Li said in a statement.He noted that China continues to be the major focus of the group's expansion outside Hong Kong.'We will continue to capitalise on the mainland's growth opportunities by following a disciplined approach to investment and development,' he said.Looking ahead, Li said the group remains optimistic about Hong Kong's long-term economic prospects as the territory is poised to benefit from a positive global economic environment and robust growth on the mainland.'We see exciting growth in the future and the group is well placed to capitalise on the opportunities which will arise in the years ahead,' he said.The company recommended a final dividend of 1.74 hkd a share, up from 1.58 a year earlier.Cheung Kong will provide details of its 2006 performance at a news conference later in the afternoon.(1 usd = 7.8 hkd)roby.lau@xfn.comrl/rc
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