[ET Net News Agency, 11 September 2018] Nomura lifted its target price for China
Communications Services (CCS)(00552) to HK$7.5 from HK$6.3, and maintained its "buy"
rating.
The research house said CCS's accelerated business diversification received positive
feedback from investors on the post 1H results NDR, as well as an investor meeting at
Nomura's China Investment Forum (CIF).
Both telco (excluding CT) and non-telco markets enjoyed healthy growth momentum in 1H,
and management expects the trend to continue. Short term, the company may face competition
from other telco infrastructure service providers, i.e. the newly founded China Mobile
engineering construction company, and it may also experience margin pressures through its
expansion in the non-telco market.
However, Nomura thinks CCS's unique advantages as a comprehensive ICT solution provider
should help to strengthen its market position in the long run. It raised its FY2018-20
earnings estimate by 1-2% to reflect accelerated business expansion together with slightly
lower GPM. (KL)
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00552 CHINACOMSERVICE
Nominal 
3.960 +0.090 (+2.326%) Others
11/09/2018 11:09
[I-bank focus]Nomura ups China Com Service (00552) to HK$7.5
| Remark: | Real time quote last updated: 23/09/2024 17:59 |
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