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DBS raises target prices of China Telecom, China Netcom |
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Written by Administrator
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Tuesday, 14 November 2006 |
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BEIJING, Nov. 14 (InfoChina) – DBS has raised its target prices for the H-shares of China Telecom Ltd. (NYSE: CHA) and China Netcom Ltd. (NYSE: CN) from 3 HK dollars to 3.85 HK dollars and from 15.5 HK dollars to 17 HK dollars respectively, on the ground of bright prospects for the 3G market in the Chinese mainland.
DBS also upgraded the rating of China Telecom to “buy” but maintained that of China Netcom at “hold on”. China Telecom is the largest fixed operator in China, followed by China Netcom. Both of them are involved in the test of China's homegrown TD-SCDMA network. DBS said that China Telecom posted a good performance in the first three quarters in 2006. Its debt ratio was 59.5% by June, which is conducive to its operation of 3G services in the future. Besides, the operator is also expected to benefit from the trend of FMC (Fixed-to-Mobile Convergence). As for China Netcom, its stock price jumped by 10% last week driven by the market anticipation for the cooperation between China Netcom and the Spain-based Telefonica SA in controlling PCCW. But DBS said China Netcom lacks resources to develop 3G network independently, and its price rising has no much relation to the fundamentals. |
China Stock News