Pacific Century

Pacific Century: profits for 1H14 climbed 19.3% y/y to $36.3m mainly due to increase in share of profit of associates, namely PCCW. 1H14 PCCW attributable profits rose 24% y/y % to $172.0, accordingly PCCW’s contribution to PCDR increased 25.3% y/y to $36.6m. Otherwise, revenue also helped. Revenue, in the form of distributions from HKT, increased 14.5% y/y to $4.4m. EBITDA more than tripled to $1.3m due to significant reduction FX losses attributed to reduction of intercompany balances. PCRD trades at 12.9x annualized 1H14 P/E and 0.9x P/BV