Breaking News, World News and Taiwan News.

Updated Thursday, February 23, 2012 0:10 am TWN, CNA



	This file photo taken on Dec. 28, 2006 shows a man walking past a logo of Chunghwa Telecom in Taipei. Shares of Chunghwa Telecom Co., one of Taiwan's leading telecom operators, closed lower Wednesday on the Taiwan Stock Exchange after it expected its earnings per share for 2012 will fall more than 16 percent from a year earlier, dealers said. (AFP) Enlarge Photo

Sponsors
▪	Find great real time deals on China Flights. Book flights to China or China domestic flights 24/7.
▪	Buy china wholesale products from reliable chinese wholesalers on DHgate.com!
▪	Save 75% for all hotels in Shanghai, Beijing and whole China. Lowest rates for Flights in China.
▪	Get the best deals for Guangzhou Hotels or choose from more than 10,000 hotels in 499 Chinese cities.

Chunghwa Telecom shares shed 1.9%

TAIPEI -- Shares of Chunghwa Telecom Co., one of Taiwan's leading telecom operators, closed lower Wednesday on the Taiwan Stock Exchange after it expected its earnings per share for 2012 will fall more than 16 percent from a year earlier, dealers said.

At the close, Chunghwa Telecom shares shed 1.90 percent to NT$92.80 (US$3.14) with 42.27 million shares changing hands, while the benchmark weighted index ended up 1.01 percent at 8,001.68 points.

A day earlier, Chunghwa Telecom released its earnings forecast, expecting its net profit for 2012 will stand at NT$39.18 billion, down from NT$47.1 billion recorded for 2011.

The telecom operator also anticipated its earnings per share for 2012 will fall to NT$5.05 from NT$6.02 registered a year ago.

Dealers said after the forecast, Chunghwa Telecom is unlikely to retain its title as the top earner in the local telecom sector, adding its weakening profitability prompted many investors to dump the stock right after the local bourse opened.

Rival Taiwan Mobile Co. is expected to replace Chunghwa Telecom to become the most profitable telecom operator in Taiwan since it has anticipated its earnings per share for 2012 will reach NT$5.34 after consolidating earnings from the Momo TV shopping channel.

Taiwan Mobile shares closed up 1.14 percent at NT$89.00 on trading volume of 9.56 million shares.

According to Chunghwa Telecom, the expected drop in earnings reflected price cuts in the company's broadband services and domestic fixed line fees.

In addition, the reduction in net profit was partly the result of lower income from its non-core businesses, including property development operations, Chunghwa Telecom said.

Meanwhile, Chunghwa Telecom has decided to raise its capital expenditure for 2012 by NT$6.61 billion from a year earlier to NT$33.05 billion, focusing on a wide range of businesses, such as mobile connections, broadband services and cloud technology-based applications.

Subscribe to The China Post and save 25%. Click here