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

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

APAC IPOs & Placements

Zhen Zhou, Toh

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

Just over a month ago, <a href="https://www.smartkarma.com/entities/873" target="_blank" data-smartkarma-citation="entities:873:1">PCCW Ltd (8 HK)</a>'s discount to NAV was close to -2x SD. We wrote on it in <a href="https://www.smartkarma.com/insights/pccw-discount-to-nav-close-to-2x-sd-near-set-up-level" target="_blank" data-smartkarma-citation="insights:5423">PCCW - Discount to NAV Close To -2x SD; Near Set-Up Level</a>. It quickly narrowed 4% back to its mean within a week, <a href="https://www.smartkarma.com/insights/pccw-good-time-to-close-the-trade" target="_blank" data-smartkarma-citation="insights:5666">PCCW - Good Time to Close the Trade</a>. Now, discount to NAV is back at similar levels and we think this is a significant dislocation for mean reversion.In this insight, we analyze the holdco primarily on these five factors:<div><ol><li>What's on Offer - Discount to NAV close to -2x SD</li><li>Reasons for Mean Reversion - Stable discount range suitable for mean reversion</li><li>Catalysts - STX Entertainment already showing good results</li><li>Potential Risks - OTT and UK wireless broadband performance</li></ol></div>

Just over a month ago, PCCW Ltd (8 HK)'s discount to NAV was close to -2x SD. We wrote on it in PCCW - Discount to NAV Close To -2x SD; Near Set-Up Level. It quickly narrowed 4% back to its mean within a week, PCCW - Good Time to Close the Trade. Now, discount to NAV is back at similar levels and we think this is a significant dislocation for mean reversion.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 - Stable discount range suitable for mean reversionCatalysts - STX Entertainment already showing good resultsPotential Risks - OTT and UK wireless broadband performance

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