Comba Telecom 2342 HK; SGX

[winston]

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).

[winston]

Not vested. From Phillips:-

Risks

Upside risks
1. WLAN building is approved by MIIT.
2. The three networks` integration is speeded domestically.
3. CT begins its CDMA wireless enhancement in full scale.
4. OEM demand from oversea equipment supplier increases faster than expected.

Downside risks
1. Over-buy recently brings technological correction.
2. Oversea demand recovery is slower than expected.
3. Domestic 3G subscribers adding slow leads to weaker investment of operators to net optimization.

Performance growth still beating expectation, maintain Buy rating
We acknowledge to have under-valued the stimulation of 3G license to its performance. Based on further reconsideration, we revise up the EPS of 2009 and 2010 by 26% and 36% to HK$0.48 and HK$ 0.62 respectively.

And we believe its performance growth will probably further beat the expectation due to the following reasons:
1. Telecommunication business in China is experiencing an innovation from Voice to Data era, stimulating explosive demand of wireless enhancement.
2. Both developed and emerging countries have big potential demand for wireless enhancement.
3. The company, in specific, boasts R&D strength and better than expected innovation ability. So its production will still dominate the market.

Finally, we decide to maintain its Buy rating with 12-Month TP of HK$11.52, suggesting 25X PE in 2009, and PEG 0.8X CAGR expected in next three years.

[winston]

DJ MARKET TALK: Comba +8.0%; Undemanding Vs ZTE - Kim Eng Sep 3, 2009

1524 [Dow Jones] 1H results net profit more than doubled on-year. Kim Eng says robust operating performance boosted up by 3G rollout as well as continuous 2G wireless enhancement work.

Adds, if momentum continues in 2H09, Comba can report stable net profit as in 1H, full-year EPS would reach 49.6 HK cents, implying stock trading at 11.5X forward P/E, which undemanding vs other 3G beneficiaries such as ZTE (0763.HK)'s 22X. House doesn't formally cover Comba.

Source: Dow Jones Newswire

[winston]

Not vested.

DJ MARKET TALK: ICBCI Starts Comba Telecom At Buy; HK$8.90 Target

1219 [Dow Jones] STOCK CALL: ICBC International starts Comba Telecom (2342.HK) at Buy, targets HK$8.90 (15X FY10 P/E).

"As China enters the 3G era, huge capex spending on building 3G networks and infrastructure is well anticipated. We believe Comba is one of the key beneficiaries for its leading market position."

Adds, Comba currently trades at 15.4X FY09E P/E, 12.1X FY10 P/E, which inexpensive vs its peers, based on 48% growth in earnings CAGR for FY08-FY11. Stock +4.3% at HK$7.85.(SUT)


Source: Dow Jones Newswire

[winston]

Not vested.

November 26, 2009
DJ MARKET TALK: BoA-ML Starts Comba At Buy; Sets Target At HK$11

1151 [Dow Jones] STOCK CALL: Bank of America-Merrill Lynch starts Comba Telecom (2342.HK) at Buy, sets target at HK$11.00 based on 16.7X FY10 P/E, 12.7% premium to domestic peers, as house views positively company as national player with 25%-30% blended market share, and leader in growing niche market with no meaningful competitor in sight.

"A large number of small regional and local players compete in Comba's addressable market. However, none has accumulated sufficient scale to be a meaningful competitor."

Tips Comba's revenue and net profit to grow at 27% and 40% CAGR for FY09-FY11, respectively. Stock +0.3% at HK$8.77;

Source: Dow Jones Newswire

[winston]

Not vested.

November 26, 2009
DJ MARKET TALK: UOB Raises Comba Target To HK$11.50 From HK$9.00

1136 [Dow Jones] STOCK CALL: UOB-KayHian raises Comba Telecom (2342.HK) target to HK$11.50 from HK$9.00 after increasing 2010 target P/E multiple to 19.2X from 15.0X. Keeps Buy.

Says Comba's innovative and integrated products should help it maintain margin and market leadership while overseas business could serve as long-term growth driver.

"As an integrated wireless coverage solutions provider with strong R&D capability and high product innovations, we believe Comba deserves a valuation premium over the peers as well as the core equipment manufacturers that always face a higher pricing pressure." Stock +0.5% at HK$8.78;

Source: Dow Jones Newswire

[winston]

Not vested.

DJ MARKET TALK:Comba +8.6% Post Profit Guidance;UOB Eyes HK$11.50

1544 [Dow Jones] Comba Telecom (2342.HK) +8.6% at HK$8.04 vs HK$7.52 midday, after company tipped FY09 net profit to surge "over 100%," implying at least HK$455 million, being most expected; UOB KayHian' Victor Yip only tweaks up FY09/10 earnings forecasts by 0.6% following announcement.

Still, he says China telcos would continue increase spending on wireless coverage enhancement over next few years in order to improve network coverage quality, as they entered into 2nd stage of 3G network developments, thus, as integrated wireless coverage solution provider with strong R&D capability, high product innovations, Comba likely to continue deliver strong growth momentum over next few years.

Keeps Buy call, target price unchanged at HK$11.50 pegged on 19X FY10 P/E.


Source: Dow Jones Newswire

[winston]

Not vested.

DJ MARKET TALK: BOCI Ups Comba Target 36%; Strong Momentum Intact
Feb 26, 2010

0806 [Dow Jones] STOCK CALL: BOCI raises Comba Telecom (2342.HK) target price to HK$9.90 (15X FY10 P/E) from HK$7.30, after increasing FY09-11 EPS forecasts by 25%-37% on telecom gear maker's guidance for FY09 net profit growth of over 100% on-year, higher than house's previous estimate of 82%.

"We believe the company's diversified revenue streams and rising sales will enable it to maintain growth momentum this year," BOCI says; notes China Mobile's (0941.HK) 4th phase of TD-SCDMA tender, China Unicom's (0762.HK) new round of WCDMA tender will start in coming months, expects Comba to maintain leadership in bidding.

Source: Dow Jones Newswire

[winston]

Not vested.

DJ MARKET TALK:Comba Telecom +4.7%;Valuation Not Excessive -Daiwa
Feb 25, 2010

1203 [Dow Jones] Comba Telecom (2342.HK) +4.7% at HK$8.55, extending from 10.4% gain yesterday after company midday Wednesday tips FY09 net profit to rise by over 100% on-year. Daiwa says Comba's positive profit alert largely inline with house estimates of 63% on-year increase in sales, 111% increase in net income for FY09.

Says valuation "not excessive" at around 13.4X FY10 P/E, given strong earnings outlook; notes Comba guides for over 20% on-year revenue growth for FY10 to over HK$5.2 billion. Also positive is Comba's involvement in wireless network enhancement projects for Shanghai World Expo, high-speed train projects; keeps stock at Outperform with HK$10.95 (18X FY10 P/E) target.


Source: Dow Jones Newswire

[winston]

Vested

DJ MARKET TALK: Macquarie Lowers Comba Telecom Target To HK$10
Jul 12, 2010


0932 [Dow Jones] STOCK CALL: Macquarie lowers target of Comba Telecom (2342.HK) to HK$10 from HK$12, after house cuts its 1H10 estimates, as major procurement tenders not completed by June 30, in turn driving downgrades to house's FY10 earnings estimates by 3%.

But still sees solid FY10 top-line growth at 25%, with much of this to be 2H-loaded. "While 1H10 top-line growth may be a touch light (expected to rise 16% on year), we believe this is a timing issue rather than a softening in overall industry fundamentals for Comba."

Keeps at Outperform.

Source: Dow Jones Newswire