DJ MARKET TALK: China Mobile +0.5%; CS Tips Attractive Valuations
1106 [Dow Jones] China Mobile (0941.HK) +0.5% at K$70.35 vs HSI down 1.2%, likely due to some bargain-hunting after yesterday's underperformance; is most heavily traded stock with HK$721.2 million, itself accounting for 7.3% of market total.
While competition set to increase following 3G licensing, concerns of asymmetric regulation remain; Credit Suisse says management remains upbeat on subscriber growth, CM should remain dominant industry player.
Adds, while company gets license to less commercially viable homegrown TD-SCDMA, management believes government will strongly support TD-SCDMA, related industry.
Keeps Outperform call, HK$90.00 target price with stock remaining defensive with attractive valuations, reasonable 4.5% dividend yield. 20-, 50-day moving averages intertwine around HK$74, likely offers short-term cap.