CK Hutchison's 1st Half Profit Surges on Asset Disposals

By Amanda Lee

Hong Kong-listed conglomerate CK Hutchison posted a jump in profit for a first half it described as exceptionally turbulent, saying it will tread cautiously through what it anticipates will be a challenging environment for the rest of 2026.

Supported by gains from its asset disposals, net profit for the six months ended June on a post-IFRS 16 basis rose to 26.8 billion Hong Kong dollars, equivalent to US$3.42 billion, from HK$852 million a year earlier.

First-half earnings before interest, taxes, depreciation and amortization, or Ebitda, rose 63% to HK$92.89 billion from a year earlier.

Revenue increased 6.1% to HK$255.4 billion over the same period, the company said Thursday.

The group disposed of its interests in UK Rails and UK Power Networks, recognizing gains attributable to ordinary shareholders of HK$17.75 billion, Chairman Victor Li said.

"In addition, it recognized [HK$2.22 billion] non-cash write-off of the acquisition premium allocated by the group to certain infrastructure assets," Li added.

In May, the group announced the disposal of its remaining 49% interest in VodafoneThree for a consideration of about 4.3 billion pounds, equivalent to US$5.80 billion. The transaction was completed on July 30 with the gain on disposal of approximately HK$5.9 billion and cash consideration to be recognized in the second half of the year, Li said.

The group also ended the first half of the year with a record low net debt to net total capital ratio of 8.1%, Li added.

Looking ahead, Li said that the operating environment for the rest of 2026 is expected to remain challenging for the group's businesses.

During the first half, geopolitical tensions, most notably the U.S.-Iran war and repeated disruptions to shipping in the Strait of Hormuz, triggered uncertainty that has weighed heavily on consumer sentiment and increased cost pressures in many of the markets where the group operates.

"Overall a cautious approach is dictated as we go through the second half of the year," Li added.

Write to Amanda Lee at amanda.lee@wsj.com

(END) Dow Jones Newswires

August 13, 2026 06:54 ET (10:54 GMT)