Credit Lyonnais: PCCW- No More Goodwill

Credit Lyonnais said in a short comment named PCCW-No More Goodwill that PCCW was expected to write off HK$18.2bln for goodwill in acquisition of Hong Kong Telecom in this fiscal year. The company will see red in assets accordingly. Under situation of red asset, PCCW should get approval from shareholders in decision of every acquisition, not matter how much fund is involved. In the investment of internet, Credit Lyonnais expected PCCW not to decrease injection. The face net loss has reached HK$3000 mln to HK$3500 mln in the investment of internet.  If PCCW decreases investment, it will be easy for PCCW to write off annual earnings even if non-listing investment is not counted. The face loss of non-listing is also expected to reach HK$14500 mln.

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