All eyes on AS Watson spin-off plans when Hutchison reports results
Analysts forecast conglomerate will report 11pc net profit increase to HK$30 billion last year
In the absence of sizeable mergers and acquisitions last year, Hutchison Whampoa's annual results announcement tomorrow is likely to be uneventful, with much of the attention focused on a plan to spin off its retailing business, AS Watson, which analysts said could spur earnings this year.
Analysts say the telecommunications-to-retail conglomerate will report net profit of about HK$30 billion for last year, up about 11 per cent on the year.
Standard Chartered is expecting a profit of HK$30.5 billion, UBS HK$30.4 billion and Morgan Stanley HK$31.1 billion, while Credit Suisse's prediction is HK$29.8 billion.
Analysts say profit drivers for last year would be H3G, the company's third-generation mobile service in Europe, as well as its mainland properties arm and retailing business.
Meanwhile, earnings would be dragged down by its port business, Canadian Husky Energy and Hutchison Telecommunications Hong Kong.
H3G was boosted by the acquisition of Orange Austria, the result of which saw the division's earnings before tax and interest grow 50 per cent, Morgan Stanley said in a report.
Property sales on the mainland helped to increase the ebit of its property division by 25 per cent, the report said.
