Hutchison Whampoa reported 12% on-year rise in 1H10 net profit to HK$6.45 billion, vs average HK$4.51 billion forecast of 6 analysts polled by Dow Jones, underpinned by 3G operations’ loss before interest and tax down sharply to HK$998 million vs HK$5.45 billion LBIT year earlier. It registered stronger-than-expected results mainly because its 3G operations came in better than the market had anticipated. The conglomerate expects 3G business to make positive contribution to FY 2010 results on Ebit basis. while 12% rise in 1H earnings doesn’t sound particularly impressive, this marks first time in years Hutchison doesn’t have to sell any major assets in order to dress up the book.

Goldman Sachs keeps Hutchison Whampoa at Buy and raises target price to HK$66 (ADR $42.49) from HK$65. The House says 1H results were better than expected and 3G was on track to break even over next 6-12 months. Pace of cash burn reduction for 3G was encouraging. The House says Hutchison upholds full-year 3G positive EBIT 2010, which would signal 3G no longer cash drain for group, which  will become less of overhang on stock. Market will likely shift focus to non-3G businesses, which are undervalued. House revises up 2010/11/12 estimated EPS by 9%, 1%, 2%, respectively.

CLSA keeps Hutchison Whampoa at Outperform, raises target price to HK$64 (ADR $41.2) from HK$60. The House says ports, retail, 3G, interest charges all surprised on upside. CLSA expects 19% EBIT growth in 2010 at retail operation, vs 15% previously on better margins. Though it’s premature to rest bull case of Hutchison on 3G but drag impact “will be history” by year-end. However, it can’t be complacent as path to 4G unclear, exact impact on cashflow unknown.

The stock rose 7.63% to HK$57.1 (ADR $36.76) in morning session. Some analysts say its gain may be a start of medium-term re-rating instead of short-lived post-results jump.