CHEUNG KONG CHAIRMAN SEES STRONG RESULTS IN 1987
Cheung Kong (Holdings) Ltd <CKGH.HK>
is expecting strong results this year after reporting better
than expected profits in 1986, chairman Li Ka-shing 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 one-for-four bonus issue and a
four-for-one 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 Kong's earnings rose to 1.28 billion H.K. Dlrs in
1986, well above market expectations of 920 mln to one billion
dlrs. They compared with profits of 551.7 mln dlrs in 1985.
    Cheung Kong also reported extraordinary gains of 983.6 mln
dlrs mainly from the firm's sale of the Hong Kong Hilton Hotel
to Hongkong Electric Holdings Ltd <HKEH.HK> for one billion
dlrs. It had gains of 81.3 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 Kong's)
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
