Hutchison Telecom

Hutchison Telecom. The Hong Kong mobile and land line company was spun out of the group's telecoms holding vehicle in May of this year. It is not only posting solid top line growth as a result of expanding mobile data and broadband, but it is also set to experience a minimum 15% boost to operating profit as a result of a change in the inter-connection regime. We expect the company to announce a 75% payout ratio when it delivers its full year results early next year. Capital expenditure has peaked, while it is the dominant player in both the 3G mobile market and also broadband. Hence it is well positioned to benefit from continued strength in mobile and broadband data.