Citic 1616 Holdings 1883

[winston]

Not vested.

DJ MARKET TALK: GS Raises Citic 1616 Target To HK$2.00; Neutral; August 19

1608 [Dow Jones] STOCK CALL: Goldman Sachs raises Citic 1616 (1883.HK) target to HK$2.00 from HK$1.63, after raising P/E multiple to 9X from 8X on back of improving sentiment, risk appetite toward small/mid caps.

New multiple set at 32% liquidity discount to MSCI China multiple of 13.6X, in line with Citic's 2-year average valuation discount. Keeps stock at Neutral. Thinks Citic 1616 will eventually become lower growth yield play over time, as further market share expansion not expected to be easy from already high levels.

Source: Dow Jones Newswire

[lithium]

Damn, this one is in my watchlist...... just didn't act on it....... Miss a good run

[winston]

Not vested. From Phillips:-


Risks


Up risks

1. The group continues to purchase quality assets, and strengthen its own industry border.
2. Voice service business contributes better revenue than expected.

Down risks

1. Integrating the purchased asset lagged the expected.
2. Regulation in this industry has a major change.
3. Acquisition fails the recognition by the market.


ROE improved with acquisition, initiate Buy rating

Looking forward, acquisition, integrating and development are still the tone of the group with its performance and dividend stable increase. We expect that CAGR of net profit will be 20% in the next three years and CAGR of dividend will be 25%.

Furthermore, the exercise price of options holding by the management is all at HK$3.26, providing a safe buffer to the current price. In overall, we give it Buy rating with 12-month TP of HK$3.96 suggesting 21x PE on FY09 EPS.

[winston]

not vested

Citic warns its troubled iron ore project Down Under faces suspension risk

China’s biggest conglomerate claims its local partner’s ‘refusal to cooperate’ risks the project’s sustainability

Source: SCMP

http://www.scmp.com/business/companies/ ... tball-club