Hutchison Whampoa (OTC: HUWHY.PK, Germany – HUWA.F, HUWA.BE, HUWA.MU, Hong Kong Stock Code: 0013) announced its 2009 earnings. Net profit for the year ended Dec. 31 rose to 14.17 billion Hong Kong dollars (US$1.83 billion) from HK$12.68 billion in the previous year, which was lower than the average forecast of HK$15.54 billion in a poll of six analysts by Dow Jones Newswires. Revenue fell 11% to HK$208.81 billion from HK$235.48 billion. The company declared a final dividend of HK$1.22, same as the previous year.

Results were boosted by higher revaluation gain, which nearly-doubled; plus a one-year gain from asset disposals. These extraordinary gains helped offset the 3G operations loss, LBIT of HK$5.28 billion. Though 3G loss had narrowed from LBIT loss of HK$15.79 billion last year, it had also been helped by a HK$3.64 billion gain from the merger of 3G operation in Australia.

Hutchison said its 3G results would continue to improve and make a positive contribution to its earnings before interest and tax in 2010.  However, the conglomerate had already set the target of achieving 3G EBIT break-even in 2009 last year, then was pushed back to 1H10, and now on 2010 full-year basis. This disappointed the investors and the stock slid HK$1.55, or 2.66% to HK$56.7 Tuesday.

Chairman Li Ka-shing said during the announcement he would continue to buy Hutchison shares. This may support the stock but will not help it break the HK60 resistant level.  The stock will be within the HK$52-HK$60 band and is unlikely to break this narrow range in short term. The next price catalyst will be its IPO listing on Shanghai Stock Exchange.