Hutchison Whampoa posted a 50 per cent rise in second-half earnings but lagged forecasts due to higher-than-expected telecoms losses in Asia and Europe.
Analysts cheered hints of a turnaround at the firm's long loss-making third-generation (3G) mobile telecoms business in western Europe in 2008 or 2009 after cutting losses substantially in the second half last year.
This year could mark a slowdown in the firm's furious pace of asset sales, as the firm rides out a global downturn that is depressing prices worldwide.
Hutchison's shares trimmed early gains to close up 0.9 per cent at HK$73.70 but outperformed a 0.2 per cent rise on the blue chip Hang Seng index. The firm's shares trade at under 10 times 2008 earnings versus the market's roughly 14 times, and just above 1 time its book value.
Hutchison, the world's largest container ports operator with large investments in retail, energy and property, reported a net profit of HK$1.84 billion in the second half, lagging the average forecast of HK$3.15 billion polled by Reuters Estimates.
Its 3G loss before interest and taxes narrowed to HK$6.62 billion ($850.9 million) in the six months ended in December from HK$11.32 billion in the first half of 2007.