STOCKWATCH: China Online sharply higher on strong 2000 results
2001-04-26
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China Online shares turned sharply higher in the
afternoon, following the release of its stronger-than-expected results for
2000, dealers said.
At 3:35 pm, China Online was up 0.037 hkd or 45.12 pct at 0.119, on trade
of 234.27 mln shares.
The Hang Seng Index was down 78.82 points at 13,232.68.
In 2000, China Online reported a net profit of 1.33 bln hkd, compared with
260.38 mln in the previous year. In the statement, the company said it recorded
net gains on investments of 1.62 bln hkd for the period.
Kenny Tang, associate director of Tung Tai Securities, said China Online
was boosted by its positive 2000 results, even though the company does not have
any tangible business.
China Online was formerly known as Star Telecom International. It planned
to focus on the internet service business in the Greater China region after
changing its name.
Before the name change in April 1999 "Star Telecom sold its paging business
to CM Telecom International ... After the change of name, it seems that China
Online does not have any tangible business," Tang said.
"China Online is more like a shell company ... it has equity investment in
other listed companies, including Pacific Century CyberWorks," he added.
In 1999, Star Telecom was given shares in PCCW, when it sold its interest
in Tricom Holdings Ltd, which was used as a listing vehicle by Pacific Century
Regional Development for the Cyberport development project in Hong Kong.
China Online sold 9.7 mln shares in PCCW at a price range of 16.0-20.1 hkd
in February 2000, raising net proceeds of around 176.60 mln hkd. After the
share disposal, the company retained a 2.1 pct stake in PCCW.
At 3:35 pm, PCCW was unchanged at 2.70 hkd.
wl/jn
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