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Market primed to see 3 Group in profit at last

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Amanda Lee

After nine years of red ink, investors are eagerly waiting for Hutchison Whampoa's controversial foray into third-generation (3G) mobile phones to finally turn a profit.

The 3 Group lost HK$998 million before interest and tax in the first half of last year, significantly less than the HK$5.45 billion deficit in the same period the previous year.

At the time of the last interim results, Hutchison Whampoa chairman Li Ka-shing repeated assurances that he expected its 3 business to make a positive contribution to the group. The end of year figures are due to be announced on March 29.

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The numbers at the time were encouraging and this time Hutchison investors seemed to be taking notice.

Since the interim results announcement last August, Hutchison shares have surged nearly 60 per cent, trading in the HK$88 to HK$90 range over recent weeks.

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But after totting up the 3 Group's losses of HK$156.5 billion between 2002 and August last year, Hutchison's ability to raise capital to expand its business has been limited.

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