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Victor Li
Business

Victor Li reports weaker than expected profit in first annual result since taking over CKI from Li Ka-shing

  • Net profit for last year increased by 1.8 per cent over 2017, but is 7 per cent less than analysts’ forecast
  • Higher net profit from continental Europe and Canada offset by lower profit from stake in Power Assets

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Victor Li is the chairman of CK Hutchison Holdings and CK Asset, the two flagship companies of the business empire his father, Li Ka-shing, built. CKI is 75.7 per cent owned by CK Hutchison Holdings. Its net profit for 2018 amounts to HK$10.44 billion. Photo: Edmond So
Eric Ng
Hong Kong conglomerate Cheung Kong Infrastructure Holdings (CKI) posted a below expectation 1.8 per cent increase in profit on Wednesday, with chairman Victor Li Tzar-kuoi reporting the company’s first set of annual results after taking over from his father, Li Ka-shing, in May 2018.
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Net profit for last year amounted to HK$10.44 billion (US$1.34 billion), an increase of 1.8 per cent over 2017, but 7 per cent less than the average of HK$11.23 billion estimated by 10 analysts polled by Bloomberg. Excluding non-recurring items, underlying profit grew by 13 per cent, CKI said.

“In addition to conventional infrastructure businesses, we are looking into the broader spectrum and studying investments in new industries and other infrastructure-like businesses, ” Victor Li said in a filing to Hong Kong’s bourse after the market closed on Wednesday.

The company’s revenue grew 19.8 per cent to HK$37.92 billion, according to the filing. Its board declared a final dividend of HK$1.75 per share, raising its annual payout to HK$2.43, an increase of 2.1 per cent from 2017.

CKI engages in gas and power distribution, power generation, rolling stock leasing, water supply and sewage treatment in Britain, gas and power distribution and transmission in Australia, waste management and power distribution in New Zealand, waste-to-energy projects in Holland, power generation and oil logistics facilities and car parks management in Canada, and tollways and bridges in mainland China.

CK Infrastructure considers sale of interests in European assets

Higher net profit from continental Europe and Canada – mostly due to acquisitions – was offset by lower profit from its 38 per cent stake in international power utilities company Power Assets. Profit from the UK made up 51.4 per cent of the total.

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