文档介绍：November 12, 2007 China: Services
November 12, 2007
China: Services
CM, CU CEOs both acknowledge potential restructuring direction
Restructuring is the govt's direction and 'the only way forward'
Restructuring related newsflow has further picked up, with both China CHINESE PS
Mobile (CM; , Buy) and China (CU; , Neutral) CEOs CMHK CU C
Ticker
commenting to the press (cited by and The Standard, etc) that the Rating Buy Neutral Neutral Buy
government’s direction is bine panies together. Wang Target price (HK$)
Current price (HK$)
Jianzhou of mented on November 9 that the government’s objective Potential upside(%) 31% 20% 1% 29%
has changed vs. that 10 years ago – it will consider bine smaller Valuation @ current price
2007E PE (x)
companies to increase petitiveness, but is no longer likely to split 2008E PE (x)
up panies as it had once done. Chang Xiaobing of CU said that 2007E EV/EBITDA (x)
2008E EV/EBITDA (x)
because China cannot have a large number of 3G licenses, yet each existing 2007E Div. yield (%) % % % %
2008E Div. yield (%) % % % %
network needs to be upgraded to 3G, merger or consolidation looks to be the
only way forward in his view. He added that fro