Was up 10% Friday ? And another 8% now ..
DJ MARKET TALK: Comba Telecom +7.9% But Still At Discount Vs ZTE
1520 [Dow Jones] Comba Telecom (2342.HK) +7.9% at HK$6.84, adding to 2-day 20.5% post-results jump; but stock likely to take breather with forward earnings now jumping to 16.3X, 13.7X following 3-day rally.
Still, this still at discount vs sector leader ZTE's (0763.HK) 28.6X, 23.9X based on Thomson Reuters. Even if assuming ZTE deserve premium, such valuation discount too wide; thus if stock pulls back significantly, may offer chances to buy.
CIMB says China telecom operators' capex won't peak this year, one of surprises from telcos' 1H results was China Unicom (0762.HK) spent only 29% of CNY110 billion capex budget in 1H09, indicating much higher capex disbursement in 2H. House lifts Comba target price to HK$7.82 from HK$6.71, still pegged on 12.3X forward earnings (which revised higher).