Hong Kong Stocks May Fall; CyberWorks to Lead on Dismal Results
By Yeong Choy Leng
Hong Kong, March 29 (Bloomberg) -- Hong Kong stocks may fall, led by Pacific Century CyberWorks Ltd. after Hong Kong's largest telecommunications company reported a loss which is twice the worst forecast expected by analysts in a Bloomberg poll.
CyberWorks, whose shares slumped 82 percent in the past one year, said it lost $886 million last year, compared with the worst forecast of a $334 million loss.
China Mobile (Hong Kong) Ltd. and other telecommunications stocks may add to losses after Nortel Networks Corp. and Palm Inc. slashed sales forecasts, renewing concern that share prices still haven't reflected slowing profit growth.
The Hang Seng Index yesterday rose 143.51, or 1.1 percent, to 12,851.41. The Hang Seng London Reference Index rose 0.3 percent to 12,788.33.
The following is a list of companies whose shares may be active. Prices refer to yesterday's closing levels.
Pacific Century CyberWorks Ltd. (8 HK ), Hong Kong's largest telecommunications company, may fall. The company's loss reflected $667 million of charges related to a writedown in the value of its Internet investments. Profit was also wiped out by net interest charges of $302 million for debt it incurred after its $28 billion purchase of Cable & Wireless HKT Ltd. in August. The forecasts of the seven analysts polled by Bloomberg News ranged from a loss of as much as HK$2.6 billion ($333.4 million) to a profit of HK$1.4 billion. CyberWorks announced its earnings after the market closed. The stock fell 2.5 cents, or 0.7 percent, to HK$3.475.
Telecommunications stocks may fall along with their U.S. peers after the Nasdaq Composite Index plunged 6 percent. China Mobile (Hong Kong) Ltd. (941 HK ), China's largest publicly traded mobile telephone company, rose HK$1.10, or 3.2 percent, to HK$35.10. The stock also rose as investors deemed its 18 percent loss in the past three months as overdone. Hutchison Whampoa Ltd. (13 HK ), which has global telecommunications businesses, rose 50 cents, or 0.6 percent, to HK$81.25.
Beijing Beida Jade Bird Universal Sci-Tech Co. (8095 HK ), which designs chips and components for security equipment, may rise. The company swung to a 31 million yuan profit in 2000 from a loss of 4.5 million yuan in the year-ago period, as demand in China for products grew. Revenue of 60.8 million yuan for 2000 increased almost fivefold from the 10.4 million yuan a year earlier. The stock was unchanged at HK$2.05.
Cosco Pacific Ltd. (1199 HK ), the Hong Kong arm of China's biggest shipping company, may be active. The company is likely to say net income rose 4.8 percent to $140.6 million from $134.1 million in 1999 as its ports handled more cargoes, according to eight analysts polled by Bloomberg News. The stock rose 5 cents, or 1.2 percent, to HK$4.275.
Greencool Technology Holdings Ltd. (8056 HK ), a China-based coolant maker, may be active. The company plans to invest 350 million yuan ($42.3 million) in three new subsidiaries in Shanghai city, Jiangsu and Anhui province, the Ming Pao Daily reported, citing Chairman Gu Chu Jun. The stock rose 4 cents, or 2.2 percent, to HK$1.83.
Legend Holdings Ltd. (992 HK ), China's biggest computer maker, may be active. The company plans to increase the number of its staff by 10 percent to 15 percent this year, the South China Morning Post reported, citing Executive Director Mary Ma. The stock fell 10 cents, or 1.9 percent, to HK$5.20.
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