Mansion House: "Buy"
PCCW's [1186] FY99 result: Despite a 46.67% decline in turnover to $152.03mn,
PCCW announced a better than expected net profit of $346.8mn for FY99. Earnings was
mainly supported by investment income of $574.3mn which comprised $537.15mn gains
on holdings of 'other investments', while $37.14mn was realised gains from the disposal
of certain 'other investments'. Looking ahead, PCCW had invested $110.8mn on its
broadband Internet services and plans to start rolling out its services under the Network
of the World brand by mid-year. The proposed merger with C&W HKT [8] will strengthen
the Group's position as the leading Internet company in Asia. Maintains BUY