HomeChina Stock News Credit Suisse expects China Telecom’s H1 net profit to tumble by 4 percent
Credit Suisse expects China Telecom’s H1 net profit to tumble by 4 percent
Written by Administrator
Tuesday, 07 August 2007
BEIJING, Aug. 7 (InfoChina) - Credit Suisse Group, a leading global financial services provider, predicts that China Telecom’s (NYSE: CHA, HK: 0728) H1 net profit, which will be announced at the end of this month, will fall to 13.5 billion yuan, down 4 percent year on year.
Meanwhile, the company’s sales revenue will go up 3 percent to 89.5 billion yuan, and Earning Before Interest, Tax, Depreciation and Amortization (EBITDA) will drop slightly.
The investment bank pointed out that the company’s current revenue and EBITDA for the first half is to increase by 4 percent and 2 percent respectively over the same period of last year.
Despite lackluster performance of fixed-lined business due to shrinking net addition of users and call volume, dampened by charge cut and mobile one-way charge campaign, the stronger-than-expected increase of broadband business is believed to bring positive driving force.
The bank holds that the stock price of China Telecom has reflected positive factors as pending 3G license issue and industry restructure and thus gives the company a “natural” rating with a target price of 5.1 Hong Kong dollars. (Edited by Zhu Zhu,
)
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