Hutchison dials the right numbers as profit soars
Conglomerate beats market estimates as globalisation and diversification help its profit jump 23pc in first half despite economic uncertainty
Globalisation and diversification helped tide Hutchison Whampoa over global economic uncertainty in the first half, with net profit beating market expectations to jump 23 per cent year on year to HK$12.4 billion.
"While uncertainty will remain a challenge for the second half, major economies are showing signs of stabilisation and gradual recovery," chairman Li Ka-shing said in a statement filed with the Hong Kong stock exchange yesterday. "I expect the group will continue to grow in the second half of 2013, barring material adverse developments in our major markets."
It is the first time in two decades that Li and Hutchison did not hold a press conference after the results.
Some 31 per cent of the earnings before interest and tax (ebit) was generated from Europe but ebit for the group overall grew 16 per cent to HK$29.89 billion.
The company has consistently outperformed its peers in the past months, Credit Suisse analyst Cusson Leung said in a report dated July 17. "We believe the advantage of a globally diversified conglomerate is paying off now."
Some 17 per cent of ebit came from Hong Kong, 18 per cent from the mainland, 14 per cent from Canada and 16 per cent from Asia, Australia and other areas. The remaining 4 per cent was from financial products.