Hutchison Telecom

BUY Hutchison Telecom (2332) will hold an analyst briefing cum conference call after market close today for an update on the company’s business strategy after the disposal of its India operations. Whether the company will distribute a special dividend will be a key market concern. We maintain our BUY recommendation and target price of $18.0. ENM Holdings (128), 34.6%-owned by the chairlady of Chinachem Group, went up 22% yesterday to close at $0.71 with an extremely high trading volume given speculation about an asset injection by the major shareholder. Book value of ENM Holdings, as at 30 June 2006, amounted to $890mn or $0.54 per share of which 80% are liquid assets including cash and equity investments. We believe the chance of asset injection is minimal and recommend investors to take profit as the counter is trading at a 31% premium to book value.