Daifuku Securities maintained the PCCW (0008.HK) buying rating, with a target price of HK$2.30.
Daifuku Securities said that assuming PCCW re-proposes to privatize Evergrande Real Estate (0432.HK) at a price equivalent to book value, it will only cost HK$2.1 billion, the special dividend that PCCW receives from Yingda Real Estate can basically meet these capital requirements. Daifuku Securities said that the book value of Evergrande Real Estate does not include the revaluation surpluses of the company's completed properties and PCCW's telephone buildings; it also said that the actual situation may be that PCCW will disburse some cash before privatization. Currently, PCCW is more able to afford this.
The share was flat at HK$1.22.