Friday, October 22, 2010

China Mobile ADR

China Mobile ADR: CIMB maintains Neutral Call on grp with TP of US$50.59, highlights that recent 3Q10 results was bellowing estimated forecast, with only a 3% YoY growth in Net profit. Notes that a second round of handset subsidies could depress margins as net terminal kick-offs struggle for market shares. Grp currently trades at EV/Ebitda of 4x CY11, vs Asian peers average of 5.8x….

Technically counter could see some Buying interests with indicators still positive but facing the risk of losing momentum. With longer term trend still intact, resistance tipped at US$54.70 and US$57.00, with support at US$52 and US$49.90.

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