The Zhitong Finance App learned that UBS released a research report stating that it will “buy” the rating for Changhe (00001), with a target price of HK$62.3. The company earned 2.4 billion euros from the sale of some Italian telecom network equipment. The bank sees the deal as positive, as Changhe can unlock value from its telecom assets, and its telecommunications division will continue to pursue asset-light strategies to improve operational and capital efficiency. Changhe's current trading price is 48% off net asset value (NAV), which is about 1 standard deviation below the long-term average of 39%.

According to the report, CK Hutchison Group Telecom (CKHGT), a subsidiary of Changhe, signed an agreement with EQT, a subsidiary of global private equity firm EQT, to establish a new company to provide wholesale mobile and wholesale fixed network communication services in Italy. CKHGT, the Italian mobile telecommunications business WINDTRE, will transfer its active network equipment and wholesale mobile and wholesale fixed network communication services business in Italy to the new company. The new company will have 60% and 40% of the shares held by EQT and CKHGT respectively.