All eyes will be on AS Watson spin-off plans when Hutchison reports results

In the absence of sizeable mergers and acquisitions last year, Hutchison Whampoa’s annual results announcement on Friday 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.

Most analysts forecast that the telecoms-to-retail conglomerate will report net profit of a little over HK$30 billion for last year, up about 11 per cent year on year.

Standard Chartered tips 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 telecoms service in Europe – its mainland properties arm and its 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, as a result of which the division’s earnings before tax and interest (ebit) grew 50 per cent year on year, 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.