Hutchison Whampoa plans dual listing for AS Watson
Li Ka-shing hopes to spin off the health and beauty product retailer this year after flagship posts 20pc increase in net profit
Li Ka-shing says his telecommunications and retail flagship Hutchison Whampoa hopes to spin off its AS Watson retail business for a listing in Hong Kong and an overseas market this year, after reporting better-than-expected earnings for last year.
Hutchison's net profit rose 20 per cent from 2012 to HK$31.1 billion, driven mainly by its third-generation telecommunications services and retail business in Europe as well as its property unit in mainland China.
Net profit beat the market's consensus forecast of HK$29.7 billion.
Nomura International analyst Benjamin Lo said Hutchison "could have double-digit growth in its recurring profit in 2014 as its three driving engines - property, retail and telecommunications services - would continue to perform better".
Recurring profit before one-off property revaluation and disposal gains increased 17 per cent to HK$31 billion.
Li said Hong Kong should be one of the markets for a dual listing of Watson, the largest health and beauty product shop operator in China, Asia and Europe.
The retail business, excluding its French operation which is undergoing a refurbishment programme, reported 14 per cent growth in earnings before interest and tax to HK$11.8 billion last year.
