[March 6] An expected delay by Hutchison Whampoa in the roll-out of 3G telephony services, along with a sharp decrease in share price in partly Hutchison owned Vodaphone Airtouch, has caused ING Barings to downgrade its twelve month price target to HK$93 from HK$101.
ING Barings analyst Cusson Leung noted “Although Hutchison has provided HK$30 billion for its 2.13 billion Vodaphone shares at the interim stage, the group may have to make a further provision for its holding on the back of the sharp fall in the Vodaphone share price.”
Hutchison earnings forecasts for 2001 and 2002 have been lowered by 4.7 percent to HK$51.4 billion and 28.1 percent to HK$8.9 billion respectively.
ING Barings also lowered its earnings forecasts for Hutchison for 2000 to HK$37.6 billion due to the proportion of its funds tied up in low yield securities.
ING Barings maintains a hold rating on Hutchison.