PCCW - Discount to NAV Near To -2x SD Again

PCCW - Armed with a Warchest, There Is a Potential for Stub Re-Rate

PCCW - Investment by Temasek, Hony, and Foxconn into OTT Business May Turn Stub Sentiment Positive

APAC IPOs & Placements

Zhen Zhou, Toh

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<a href="https://www.smartkarma.com/entities/873" target="_blank" data-smartkarma-citation="entities:873:1">PCCW Ltd (8 HK)</a>'s 1H 2016 results missed estimates leading to an over 12% decline of share price over one week. Discount to NAV has widened close to -2x Standard Deviations (SD) away from mean. This a significant dislocation. In this insight, we analyze the holdco primarily on these five factors:<div class="sk-insight-content__block"><ol><li>What's on Offer - Discount to NAV close to -2x SD</li><li>Reasons for Mean Reversion - Media segment disappointment not a concern</li><li>Statistics and Set-Up - long PCCW / short HKT</li><li>Catalysts - Investment in STX Entertainment</li><li>Potential Risks - Continual underperformance of OTT</li></ol></div>

PCCW Ltd (8 HK)'s 1H 2016 results missed estimates leading to an over 12% decline of share price over one week. Discount to NAV has widened close to -2x Standard Deviations (SD) away from mean. This a significant dislocation. In this insight, we analyze the holdco primarily on these five factors:What's on Offer - Discount to NAV close to -2x SDReasons for Mean Reversion - Media segment disappointment not a concernStatistics and Set-Up - long PCCW / short HKTCatalysts - Investment in STX EntertainmentPotential Risks - Continual underperformance of OTT

PCCW - Discount to NAV Close To -2x SD; Near Set-Up Level