Amadeusz Juskowiak

Cheung kong chairman sees strong results in 1987

Cheung Kong Holdings Ltd CKGHHK is expecting strong results this year after reporting better than expected profits in 1986 chairman Li Kashing said

He did not give a specific earnings projection but he told reporters the firm will pay total dividends of not less than 19 cents a share this year after a oneforfour bonus issue and a fourforone stock split

The company earlier declared total dividends equal to 15 cents a share for 1986 adjusting for the stock split and bonus issue

Cheung Kongs earnings rose to 128 billion HK Dlrs in 1986 well above market expectations of 920 mln to one billion dlrs They compared with profits of 5517 mln dlrs in 1985

Cheung Kong also reported extraordinary gains of 9836 mln dlrs mainly from the firms sale of the Hong Kong Hilton Hotel to Hongkong Electric Holdings Ltd HKEHHK for one billion dlrs It had gains of 813 mln dlrs in 1985

Li attributed the surge in 1986 earnings to a buoyant local property market and substantial increases in contributions from associated companies

Looking ahead 1987 should be another year of stability for the property market Li said The growth in Hong Kongs exports is expected to stimulate the demand for industrial buildings

Cheung Kong is cash rich and is looking for new projects in the British colony Li said noting the firm is interested in a land reclamation project along the Hong Kong harbour and is exchanging views with the government on a proposal to build a second airport

Reuter