[ET Net News Agency, 17 October 2017] BofA Merrill Lynch initiated coverage of China
Communications Services (CCS) with a "buy" rating, and a target price of HK$5.6 (11x 2018
P/E). Given 9% CAGR in 2016-19 earnings, the research house sees 11x P/E multiple for
valuation as reasonable.
BofAML said its rating is based on the following factors: (1) CCS will be a key service
provider to domestic telecom operators throughout the latter party's network construction;
(2) CCS will be a key outsourcing service provider to telecom operators and provincial
governments; (3) CCS will win more contracts in rolling out smart city projects for
provincial governments; (4) stable GP margin; and (5) the firm's good track record in
enhancing shareholder return (dividends). (KL)
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00552 CHINACOMSERVICE
Nominal 
3.680 -0.010 (-0.271%) Others
17/10/2017 15:30
[I-bank focus]BofAML starts China Com Service at HK$5.6
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