Comba Telecom 2342 HK; SGX

[winston]

Not vested. If u dont take your profits, somebody else will ..

DJ MARKET TALK: Comba Telecom Set To Fall; Holders Cut Stakes

0920 [Dow Jones] Comba Telecom (2342.HK) set to fall after news its chairman Fok Tung Ling, deputy MD Zhang Yue Jun have agreed to place 28 million, 7 million shares respectively at HK$8.55/share, representing 3.9% discount to yesterday's close of HK$8.90 (down 0.4%).

While it didn't provide reason for stake cut, placement of shares may be opportunistic after stock's 23.9% rise month-to-yesterday, vs HSI's 8.8% rise in same period.

Upon completion, Fok, Zhang's stakes in company down to 37.0% from 39.4% and to 10.6% from 11.2%, respectively. Expected fall in shares could provide opportunity for those who missed out on recent rally to buy on weakness even though key holders have lowered their stakes.


Source: Dow Jones Newswire

[winston]

Not vested. From Phillips:-

Risks

Up risks
1 Oversea business expansion beats the expectation.
2 Profitability beats the expectation.

Down risks
1 Antennas & Subsystems business performs worse than expected.
2 Domestic operators` CAPEX are lower than expected.


Operation growth returns to stabilize, maintain Buy rating

Experienced the business rapid expansion in 2009, Comba` operation status has returned to stabilize in this year. It is expected that the growth in the next three years will drop to 18%.

While benefited from excellent cost control, we believe its net profit growth will be higher than turnover, and increase to HK$753million and HK$929million in FY2010 and FY2011, 33.3% and 23.4% y/y respectively, suggesting EPS of HK$0.594 and HK$0.733.

Comba's valuation is only about the 0.6x of ZTE (763.HK), suggesting 11.52x PE on FY2011 EPS, and 0.55x PEG. We maintain the Buy rating with 12-month TP slightly cut to HK$11.00.

[winston]

not vested

Aug 26, 2011
DJ MARKET TALK: UBS Upgrades Comba Telecom To Buy From Sell

1437 [Dow Jones] STOCK CALL: UBS upgrades Comba Telecom (2342.HK) to Buy from Sell, saying that valuation is attractive after the stock price fell 30% over the past month.

It keeps a price target of HK$7.30. The house notes 1H11 net profit rose 13.7% on-year to HK$317 million, in-line with UBS' forecast for HK$316 million, but topping the consensus forecast of HK$306 million.

The house tips a positive outlook. UBS expects Chinese telecom capex could regain momentum in 2H after carriers underspent their capex in 1H, noting that China Unicom's (0762.HK) management highlighted it planned to increase its capex on mobile coverage and optimization.

The house also says China Mobile (0941.HK) may increase mobile capex due to strong data traffic growth. Comba's overseas revenue has emerged as a growth driver, rising 47.2% on-year in 1H, contributing to 13.7% of total revenue, it notes.

Source: Dow Jones Newswire

[winston]

not vested

Valuation/Recommendationï‚·

Since the Chinese market is just entering the 3G era, we foresee the
mobile data boom will create strong demand for wireless enhancement in
the Chinese market over the next few years.

As the market leader, Comba could continue delivering solid earnings growth over the next few years, and its longer-term growth could be triggered by the 4G network build-out.

Maintain BUY and our HK$9.60 target price is based on 13.7x 2012F PE (average forward PE).

Source: UOBKH

[winston]

not vested

Comba Telecom Systems (2342 HK, Buy) - Safer play in a volatile market
( HKD5.81 / PT: HKD10.00 )

Action: Buy for WiFi growth

We reiterate our Buy rating and TP HK$10 for Comba. We like Comba’s small overseas exposure and a stable earnings growth profile driven by rising telecom capex to support low-end smartphone growth in China.

New product innovation should help Comba offset the impact from wage inflation. In our view, this stock is a safer play for investors in the unstable macro global environment.


Source: Nomura

[winston]

not vested


DJ MARKET TALK: BOCI Cuts Comba Target To HK$7.17; Keeps Buy
Jan 11, 2012

0902 [Dow Jones] STOCK CALL: BOCI cuts its target price for Comba Telecom (2342.HK) to HK$7.17 (10.8X FY12 P/E) from HK$10.30, as it lowers its FY11-13 EPS forecasts by 8%, 13% and 9% respectively, factoring in the slower-than-expected sales growth in 2H11, largely due to weaker sales on wireless enhancement products and services to China Telecom (0728.HK) and China Unicom (0762.HK).

Still, it keeps Comba at Buy, as "the sharp correction significantly improves risk reward and a market re-rating can be expected once operators announce their 2012 capex plans in March."

Source: Dow Jones Newswire

[winston]

DJ MARKET TALK: Comba Bounces 2.0%; Nomura Says Accumulate More
Jan 10, 2012

1608 [Dow Jones] Nomura says that post Comba Telecom's (2342.HK) recent share price weakness, triggered by China Telecom's (0728.HK) negative capex guidance, "we believe it is the right time to further accumulate Comba shares," as its sales exposure to China Telecom is only 6%.

The house sees limited downside risks on its revised revenue forecast (18% on-year in HKD, or 13% in CNY vs 10% industry growth), and sees more upside based on its optimistic view of China Mobile (0941.HK) (about 57% of FY11 sales) and China Unicom's (0762.HK) (about 20%) wireless capex in 2012 driven by rising mobile data traffic.

Comba rebounds 2.0% to HK$5.56 after slumping 11.5% over the past two sessions.

Source: Dow Jones Newswire

[winston]

DJ MARKET TALK: Comba Off 8.2%; But Downside Likely Limited -UOB-KH
Jan 9, 2012

1457 [Dow Jones] Comba Telecom (2342.HK) tumbles 8.2% to HK$5.17 on top of its 8.6% fall Friday; volume is heavy at HK$124.8 million.

UOB KayHian says the weakness is due to some analysts tipping that the company's earnings may fail to meet consensus expectations due to poor orders from China Unicom (0762.HK) and China Telecom (0728.HK) in 2H11.

It says that even though Comba's 2H earnings are likely to miss expectations, the company's technology and market leadership on wireless coverage enhancement and WLAN equipment market shall enable it to deliver a solid sets of earnings in 2012 again.

With the stock trading at 7.3X FY12 P/E, "we believe the downside is limited, and we see further correction would create a good entry opportunity."

Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: Comba Slumps 18.5%; Street Too Optimistic -Macq

1320 [Dow Jones] Comba Telecom (2342.HK) falls more in the afternoon, taking a 18.5% beating to an intraday trough, also 52-week low, of HK$1.76, as its warning for an 1H12 loss still catches investors by surprise, despite peer ZTE's (0763.HK) similar warning last month.

Macquarie sees 50%-60% downside to its FY12 net profit estimate, and says what is interesting is that Comba points to "fierce competition" in the industry, despite in previous years pointing out how it was able to grow market share in a fiercely competitive environment.

"Market dynamics do not appear to have changed but Comba's ability to succeed in the market seems to have deteriorated."

The house says of 26 recommendations on Comba, "we are the only Underperform," but with 50%-60% downside to earnings and the reasons for earnings woes not one-off in nature, "our target price (of HK$4.30) obviously appears too high."


Source: Dow Jones Newswire

[winston]

not vested

<Research Report>COMBA (02342.HK)'s TP lifted to $2.5 by GS as management expects results to turn positive in 2H12

Although COMBA (02342.HK) suffered a loss of $161 million in 1H12, the management believe the firm can record a profit in 2H12, said Goldman Sachs.

The broker cut is 2012 earnings per share forecast for COMBA by 94% but raised its 2013-14 forecasts by 11% and 16% respectively.

COMBA was rated Neutral with target lifted to $2.5 from $1.8.


Source: AAStocks Financial News