HUTCHISON SEES HIGHER PAYOUT, SATISFACTORY PROFITS

  Hutchison Whampoa Ltd &lt;HWHH.HK>
  expects satisfactory profits in 1987 and will pay a higher
  dividend for the year, chairman Li Ka-shing said.
      He did not make any specific projections for the company's
  earnings this year but he said the firm will pay a dividend of
  not less than 32.5 cents per share after a proposed
  four-for-one stock split and a one-for-four bonus issue.
      It paid total dividends of 1.30 dlrs per share last year,
  equal to 26 cents per share, adjusting for the bonus and share
  split.
      Hutchison, which has operations ranging from trading to
  property and container terminals, earlier reported after-tax
  profits of 1.62 billion dlrs against 1.19 billion dlrs in 1985.
      The 1986 total excluded extraordinary gains of 563 mln
  dlrs, partly from the sale of some of its stake in the South
  China Morning Post, the leading English language newspaper,
  compared with 369 mln dlrs the previous year. It said it
  expects another 277 mln dlr gain in 1987 from the sale of the
  remaining shares.
      Li said Hong Kong's property market remains strong while
  its economy is performing better than forecast with its largely
  export-led growth.
      Gross domestic product grew by nearly nine pct last year
  against an initial government projection of 4.5 pct.
      But he said Hong Kong's large trade deficit with the U.S.
  May result in protectionist measures that will adversely affect
  the British colony.
      He said all of the company's major operations showed
  improved results in 1986.
      Hutchison said earlier it will sell its entire 23.5 pct
  interest in Hongkong Electric Holdings Ltd &lt;HKEH.HK> to
  &lt;Cavendish International Holdings Ltd>, itself a spin-off from
  Hongkong Electric.
      Under a reorganisation announced separately, Hongkong
  Electric will spin off all its non-electricity related
  activities into Cavendish, which will be listed on the local
  stock exchange. Hongkong Electric shareholders will receive one
  share in Cavendish for every Hongkong Electric share.
      Cavendish will buy the 348.2 mln Hongkong Electric shares
  from Hutchison by issuing 975 mln new shares.
      The spin-off and the sale of Hongkong Electric shares will
  give Hutchison a 53 pct stake in Cavendish.
      Li said the decision to spin-off Cavendish is to relieve
  Hongkong Electric of public criticism of the power company for
  making risky investments. But he denied there was pressure from
  the government for the spin-off.
      He said Cavendish will have seven billion dlrs of assets
  and will be almost debt free, with 340 mln dlrs of liabilites.
  Its major assets are the Hong Kong Hilton Hotel, property
  development, and interests in Husky Oil Ltd &lt;HYO.TO> of Canada
  and Pearson Plc &lt;PSON.L> of Britain.
  

