STOCKWATCH: i-Cable lower on profit-taking

HONG KONG (AFX-ASIA) - i-Cable Communications was lower on profit-taking after its share price hit a recent high of 5.10 hkd yesterday, dealers said.

	    They said despite the current losses, it is likely for the stock to move higher on its healthy fundamentals in the local broadband industry and the current monopoly pay TV business.

	    At 12:16 pm, i-Cable fell 0.15 hkd or 2.94 pct to 4.95 hkd on trade of 1.00 mln shares, while the Hang Seng Index was up 176.28 at 13,897.55 on turnover of 5.72 bln hkd.

	    An analyst with South China Securities said the current selling was technical in nature.

	    "The stock had posted significant gains recent on rumours that the company would make a share placement at 6.0 hkd per share. Now, investors are just locking in profit," the analyst said.

	    The analyst said his brokerage has set a 12-month target price of 5.80 hkd for i-Cable.

	    "On the back of its sound fundamentals, it will not hard for the stock to jump over the short term resistance of 5.10 hkd," the analyst said.

	    While Hong Kong is opening its pay TV market to newcommers, the analyst said i-Cable is expected to take advantage of the good foundation it has already established.

	    Currently, i-Cable has about 500,000 pay TV subscribers, the analyst said.

	    The analyst said he expects i-Cable to launch value-added products to enhance its presence in the broadband business.

	    The company currently has a share of about 30 pct of the local broadband market.

	    The analyst said his brokerage expects i-Cable to post a net profit of about 220 mln hkd this year.

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