Cheung Kong - controlled by Asia's wealthiest man Li Ka-shing - is poised today to report a drop of as much as 24 per cent in its first-half core earnings, without one-off gains and given lower property sales, according to analysts.
Excluding the contribution from Hutchison Whampoa, Cheung Kong is expected to announce core earnings of between HK$6.3 billion and HK$6.6 billion, a fall of more than 20 per cent from a year ago.
Last year, Cheung Kong reported HK$8.3 billion in interim core earnings, which were boosted by a sharp rise in property sales and a one-off gain from the spin-off of its 33.4 per cent owned Oriental Plaza in Beijing into yuan-denominated Hong Kong real estate investment trust Hui Xian Real Estate Investment Trust.
Bank of America Merrill Lynch predicted a decline in Cheung Kong's core profit because of fewer projects booked in the first half.
It said the Festival City phase three development in Tai Wai would be the major profit contributor, just as Festival City's phase one and two developments, the Le Prime and Oceanaire projects, were a year ago.
Morgan Stanley forecast Cheung Kong's core earnings would amount to HK$6.6 billion, down 20 per cent from a year ago. It said Cheung Kong had sold 2,800 units worth HK$20 billion in Hong Kong so far this year.
Taking into account the contribution from its associate, Hutchison Whampoa, Bank of America Merrill Lynch forecast net profit for Cheung Kong would reach HK$10.6 billion, down 68 per cent from HK$32.25 billion a year ago.