Updated: (03/02/2012) 09:48

Comba (2342 HK) Tam Sze Chuen, Kevin 譚思晉

Profit warnings from non-HK listed telecom equipment counterparts suggest the industry environment may be more challenging than expected. We are also concerned that China Mobile, its major customer, has less room of upside surprise in telecom capex. Downgrade to HOLD.

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Updated: (03/02/2012) 10:03

Sa Sa Int'l (178 HK) Eugene Mak, 麥耀銓

Sa Sa International (Sa Sa or the Group) announced its Jan2012 sales figures for Hong Kong/Macau markets on 1Feb2012, which was reasonable but were slightly below the Management's expectations. The figures also continue to support the continual normalization in the Group's sales growth. We maintain our HOLD recommendation with target price of HK$5.04 based on a target FY13F target PER of 18.1x (PEG of 0.9x and FY11-14F EPS CAGR of 20.2%) and a FY13F diluted EPS of HK$0.28 as we keep our assumptions unchanged, which is still considered conservative and is at a level we are still comfortable with.

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