Steady income growth tipped for Wheelock
By NICHOLAS REYNOLDS
WHEELOCK & Company is one of Hong Kong's largest conglomerates with subsidiaries including fellow conglomerate Wharf Holdings, retailer Lane Crawford and property developer New Asia Realty & Trust.
Wheelock is set to record steady earnings growth over the next two years and brokerage ING Barings recommends a buy.
Wheelock registered better than expected interim results for the six months ended September with net profit climbing 42.2 per cent to $1.51 billion. The group saw a 107.6 per cent rise in pre-tax profit on the excellent performance of estate agency Harriman, Wheelock Travel and computer service provider COL.
Wheelock has managed to double profits at the operating level, but the contribution from its subsidiaries will not be more than 10 per cent over the next few years as Lane Crawford faces weak consumption.
Meanwhile new joint ventures, including the Wheelock, NatWest and Foster joint venture, are still at their initial stage of development.
Wharf and New Asia will see steady growth. Wharf is adding 2.7 million square feet of property to its portfolio and New Asia plans to complete several major developments.