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Nov. 9 (Bloomberg) -- Hutchison Whampoa Ltd., billionaire Li Ka-shing’s biggest company, rose to the highest in almost two weeks in Hong Kong trading after saying recurring earnings jumped on its European operations.
The stock advanced 1 percent to HK$72.80, its highest close since Oct. 28, after gaining as much as 3 percent. The benchmark Hang Seng Index increased 1.7 percent.
Hutchison, with investments in industries spanning telecommunications, retail and utilities, said nine-month recurring earnings before interest, tax, depreciation and amortization jumped to 37 percent $7 billion from a year earlier. Revenue excluding contributions from Hutchison Ports Holdings Trust climbed 25 percent to $35.9 billion, the company said in a filing to the stock exchange yesterday.
“The third-quarter result is positive,” Chris Zee, a Hong Kong-based analyst at BNP Paribas Securities (Asia) Ltd., said by phone today. “Unless anything sudden happens in the rest of the year, we’re likely to see the group report higher income for the full year.”
Europe accounted for 25 percent of Hutchison’s Ebitda in the first six months of the year, the company said last month. Its operations in the region are “very resilient,” it said.
“Our business overall continues to perform well despite market uncertainties, particularly in Europe,” Managing Director Canning Fok said in the statement. “The Christmas trading season will of course be important to our retail and telecom businesses in particular, but I believe in any case that our businesses will continue to demonstrate resilience.”
Li, chairman of the company, said in the first-half earnings statement he was confident about the company’s outlook for the second half, and planned to continue to invest and expand its business. First-half net income increased to HK$46.3 billion ($6 billion) from HK$6.3 billion a year earlier, missing the HK$51 billion median of five analysts’ estimates in a Bloomberg News survey.
--With assistance from Stephanie Tong in Hong Kong. Editors: Garry Smith, Frank Longid
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