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HONG KONG, Aug 23 (Reuters) Hutchison Whampoa Ltd , the ports-to-property conglomerate controlled by tycoon Li Ka-shing, posted a 53 percent jump in first-half profit as gains from the sale of its Indian cellphone unit prevented losses on 3G telecoms from dragging it into the red.

''The results were weak, as expected,'' said Morgan Stanley analyst Rob Hart. ''It'll be a moderate disappointment for people who expected a trendline improvement in 3G losses.'' The sprawling group -- which is the world's biggest container ports operator and has vast holdings in retail, property, energy and infrastructure -- said losses before interest and taxes at its third-generation mobile unit narrowed slightly to HK$11.3 billion (US$1.45 billion) from HK$11.99 billion a year earlier.

Hutchison, whose US$25 billion investment in 3G mobile telecoms has been a drag on its performance since 2000, met its target of generating sustainable earnings before interest, tax, depreciation and amortisation (EBITDA), after customer acquisition costs on a monthly basis, during the first half.

The group expects to maintain that cash-flow target in the second half, although analysts increasingly expect it to try to unlock value from 3G either by selling its tower networks or unloading its entire 3G operations in Britain and Italy, its two main markets.

Managing Director Canning Fok said Hutchison is considering joining its Italian 3G tower network with that of rival Wind in a separate firm, then leasing back access. He also said the company has no plan to sell its UK 3G unit.

Investors were disappointed. Hutchison stock rose nearly 4 percent on Thursday ahead of the results but ended just 0.3 percent higher at HK$77.20, lagging a 2.8 percent rise in the Hang Seng Index <.hsi>. Hutchison is down 2.3 percent since the start of the year, well below the market's 15 percent rise.

INDIA TO THE RESCUE Hutchison's earnings were boosted by exceptional gains of HK$35 billion, thanks to the sale of its Indian mobile phone network to Vodafone and a revaluation gain on investment properties of HK$767 million.

Sister property developer Cheung Kong (Holdings) , which owns nearly half of Hutchison, posted a 52 percent rise in first-half net profit helped by one-off gains from Hutchison.

Cheung Kong's net profit of HK$18.54 billion (US$2.37 billion) beat the HK$15.8 billion average forecast by two analysts surveyed by Reuters Estimates. Excluding the Hutchison contribution, its profit rose 48 percent to HK$4.17 billion.

Li, 79, gave an upbeat outlook despite increasing market volatility and high energy prices.

''The economies of the mainland and Asia region remain healthy and should continue to support a growth trend from which the group's diversified portfolio of businesses will continue to benefit,'' he said in a statement.

PROFIT MATCHES FORECAST Hutchison's January-June net income of HK$28.76 billion compared with a previous HK$18.8 billion and matched an average forecast of HK$28.7 billion from six analysts polled by Reuters.

(To read the Hutchison earnings statement, click on: http://www.hutchison-whampoa.com/eng/media/presstreleases/press treleases.htm) (To read the Cheung Kong earnings statement, click on: http://www.ckh.com.hk/eng/media/2007/etInterimtResultst2007.pdf ) Hutchison's port unit, with operations in 23 countries, saw earnings rise 10 percent, as throughput rose 14 percent.

The group's retail business, which has underperformed other divisions, saw its earnings rise 5 percent, although results at its Savers and Superdrug chains in the UK and Marionnaud parfumeries in France turned in lower results.

On 3G, Hutchison said it expects to achieve positive monthly earnings before interest and taxes (EBIT) on a sustainable basis in 2008, barring unfavourable regulatory or market changes.

The company said it now has 15.9 million 3G subscribers, compared with 14.7 million in late March and exceeding Goldman Sachs' forecast for 15.7 million.

Hutchison withdrew a plan to list its largest 3G business, in Italy, early last year when it was unable to fetch its target valuation for the business.

Li, known in Hong Kong as ''Superman'' for his deal-making prowess, built a plastic flower business into a global empire that stretches across 55 countries, employs more than 220,000 people and has made him the richest man residing in Asia.

There was little reaction to the results from Hutchison bonds, which have risen strongly in the past two days as global credit markets showed signs of stabilising.

The bond due in 2033 was trading at 185/178 basis points (bps) over U.S. Treasuries, up about 10 bps over the last 48 hours.

For the full year, Hutchison and Cheung Kong's earnings are forecast to grow 77 percent and 45 percent, respectively, according to Reuters Estimates.

(US$=HK$7.8) REUTERS KR DS1654