Profit at Cheung Kong falls 30pc
Lower contribution from Hutchison Whampoa hits income as Li says global economy and property policies will continue to affect market
Cheung Kong (Holdings) has announced a 30.19 per cent drop in net profit for last year to HK$32.15 billion as a result of lower contributed earnings from Hutchison Whampoa.
Profit excluding Hutchison's attributable earnings and investment property valuation rose 8 per cent to HK$14.21 billion, slightly better than analysts' expectations. Turnover fell 26.57 per cent to HK$31.11 billion.
Chairman Li Ka-shing said overall market conditions will continue to be affected by external economic factors and local property policies.
He said he expected home prices to remain stable on the back of rising building costs and low interest rates. "Interest rates will remain low."
While some improvement has been seen in the economic outlook of the United States, the global economic outlook remains fragile as uncertainties in the euro zone continue to weigh on the pace of global recovery, according to Li.
Earnings per share last year amounted to HK$13.88. Directors declared a final dividend of HK$2.63 a share, bringing the full-year dividend to HK$3.16 a share, unchanged from 2011.
"The results are better than expected," said Adrian Ngan Wai-hung, an executive director at Citic Securities' real estate equity research department, adding it was partly because of the company's asset disposals on the mainland.