Hutchison Whampoa, Limited (HKG:13), owned by Hong Kong tycoon Mr. Ka-shing Li, is an industrial conglomerate with retail, property, energy, infrastructure, and telecommunication operations in 57 countries. Hutchison operates businesses and has investment interests throughout Europe, Asia, and the Americas. Competitors to Hutchison Whampoa Ltd include rival conglomerates Swire Pacific Ltd and Wharf Holdings Ltd. The competitors to Hutchison's subsidiaries include port operators NYK and DP World, as well as telecommunications suppliers Telecom Italia (NYSE: TI) and China Mobile Limited.
Hutchison's retail divisions, in particular, are poised to benefit from improvements in the global economy and China's economic resilience. Hutchison benefits from the growing containerization of world trade; in particular, Europe-Asia container traffic experienced a 35% surge in eastbound traffic to Asia in 2010.
While analysts expected the company to report six-month earnings (ending on June 30, 2010) below 10 billion Hong Kong dollars, the net income for the six months was 10.69 billion HK dollars. On August 10, 2010, Mr. Li Ka-Shing made his largest purchase since January 2003: 5.9 million Hutchison shares at HK$59.35. On August 11, 2010, Hutchison shares jumped 8% to a two-year high of HK$63.10 per share, surpassing a 0.31% rise in Hong Kong's Hang Seng Index.
Hutchison's revenue has increased steadily from 2000 to 2009, from HK$57,022 million to HK$208,808 million. Its dividends per share has remained at HK$1.73 per share from 2005 to 2009. Hutchison's revenues are split across its five core businesses, with the most revenue made in the retail division and the least revenue made in the property division.
While analysts expected the company to report six-month earnings (ending on June 30, 2010) below 10 billion Hong Kong dollars, the net income for the six months was 10.69 billion HK dollars. It surpassed expectations due to more income in its energy and port divisions and less loss in its telecommunications department.
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According to Goldman Sachs estimates, Hutchison's shares trade around 14.7 times expecting earnings in 2010 and 9.8 times expected earnings in 2011; Hutchison also trades at approximately a 40% discount to its net asset value. These measures are cheaper than those of rival conglomerates Swire Pacific Ltd and Wharf Holdings Ltd. Swire Pacific Ltd, a major shareholder of Cathay Pacific Airways, is a London-based international conglomerate that, like Hutchison, invests in shipping businesses. Wharf Holdings Ltd includes Wharf T&T Ltd, the second largest fixed-line provider in Hong Kong and telecom competitor to Hutchison Telecommunications International.
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