ICEA Cuts China Mobile To Neutral,HK$55.8 Tgt

0939 [Dow Jones] STOCK CALL: ICEA lowers China Mobile (0941.HK) to Neutral from Accumulate, with HK$55.80 target, translates into 15.8x 2007F P/E, on limited upside potential, as ups earnings estimates slightly on better-than-expected 1H results. Says major rival China Unicom (0726.HK, Neutral) cut its capex for improving its capacity, quality; China Mobile grew its market share, its subscribers in 1H. Notes, “key uncertainty over China’s telecom sector will be removed once China issues the long-awaited 3G licenses.” which likely to intensify competition. But company’s “dominant market share and strong presence in China will make any adverse impact resulting from intensifying competition short-lived, in our opinion.” Stock +0.3% at HK$51.80, pre-open. (SYC)

Source- http://www.newratings.com

Technorati : 3G, China, China Mobile, China Unicom
Ice Rocket : 3G, China, China Mobile, China Unicom