CK Hutchison sees profit jump 30-fold in H1

CK Hutchison Holdings announced a staggering 30-fold increase in profit for the first half of the year, reaching HK$26.8 billion compared to just HK$852 million a year earlier. The surge in earnings was primarily attributed to asset disposals and strong performances in their ports and retail businesses. Excluding one-off items and the sale of UK telecoms assets, underlying profits rose by 7% year-on-year to HK$12.6 billion. Revenues grew to HK$255.4 billion, up 6% from the previous year's HK$240.7 billion.

CK Hutchison's chairman, Victor Li, highlighted the company's success amidst an "exceptionally turbulent and uncertain global environment," with geopolitical tensions like the US-Iran war causing disruptions in shipping and commodity price volatility. Li expects the second half of the year to remain challenging, urging the group to take a cautious approach and focus on cost and cash flow management to adapt to changing market conditions.

The company declared an interim dividend of HK$0.7455 per share, up from HK$0.7100 per share last year. CK Hutchison's strong financial and liquidity profile was further bolstered by the disposals of UK Rails and UK Power Network in the first half, which significantly improved their liquidity position.

The ports division reported a 4% rise in sales to HK$24.52 billion, with storage income climbing 8% due to operations in Oman and Pakistan. The retail business saw revenue increase by 9% to HK$107.7 billion, driven by robust performances across health and beauty segments and a strong recovery in Hong Kong retail operations. CK Asset Holdings, the flagship firm focusing on residential and commercial properties, recorded a 37.8% annual increase in net profit to HK$8.68 billion, with underlying profit climbing by about 5% to HK$6.64 billion. The company also declared an interim dividend of HK$0.41 per share.