China Netcom

HK-listed China Netcom Oct net fixed-line subscriber losses 370,400

China Netcom Group Corp (Hong Kong) Ltd said it lost a net 370,400 fixed-line customers in October, compared with net losses of 269,500 subscribers in the previous month.

China Netcom said the number of fixed-line subscribers reached 114.11 mln at the end of October, down from 114.48 mln at end-September.

The company said, however, that it added 461,900 broadband subscribers in October, taking the total to 18.83 mln.

 
China Netcom (00906) China's Ministry of Information Technology and Industry is rumoured to issue mobile telephone licenses to the two fixed line operators, China Netcom and China Telecom. Share price rose on the expectation. Buy $22.60 Target $25.00 Cut loss $20.00

Goldman Sachs keeps China Netcom  at Conviction Buy, with target price at HK$27.50.

"The stock is our preferred name among Chinese telecos for its relative valuations, regulatory upside potential and A-share listing," it says.

Adds latest buy of 100% of Beijing Telcom Design Institute from parent at "low price" but impact immaterial as it only implies about 0.1% revenue enhancement for China Netcom.

Stock down 2.2% at HK$24.05.