Glonghui, May 15 - UBS issued a report stating that Changhe (0001.HK) received 2.4 billion euros in revenue from the sale of some Italian telecommunications network equipment. The bank sees the deal as positive because Changhe can unlock value from its telecom assets, and its telecommunications division will continue to pursue an “asset-light” strategy 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%. CK Hutchison Group, a subsidiary of Changhe (00001.HK), Telecom (CKHGT) signed an agreement with EQT, a subsidiary of global private equity firm EQT, to establish a new company to provide wholesale mobility 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. The bank has a long-term and “buy” rating, with a target price of HK$62.3. The stock is currently reported at HK$52.35, with a total market value of HK$2005 billion.