Sinotel

Sinotel has signed a deal with China Telecom to promote its fixed line, fibre-optic broadband and IPTV services to 4 residential districts in Shanxi. Co obtain a 40% share of net income in both fixed line and broadband and 70% of IPTV. 3Q results on the 8th Nov were positive, net profit at $49.7m, +19.5%yoy +17.2%qoq. EPS at 9M10 Rmb36.3c, est P/E 3.94x close to historical avg of 3.97x