What the broker says...
Sunday Communications, Hong Kong's smallest mobile operator, is engaged in selling mobile phones and providing telephone services.
A recent KGI Asia report commenting on the operator's interim results gave a favourable outlook for the stock despite expectations the group would make a loss for this financial year.
Sunday has succeeded in lowering its interim net loss by 42 per cent year on year to HK$66.47 million.
The group also saw turnover decline 8.47 per cent year on year to HK$664.33 million, mainly due to a 56 per cent dive in sales of mobile phones and accessories to HK$63.2 million.
Revenue, however, from the group's core mobile service took a small turn for the good to HK$594.5 million.
Sunday has also announced a delay in third-generation spending with its 3G roll-out expected in late 2004 or 2005.
Inspired by a 60 per cent drop in the stock since the start of this year, KGI has upgraded its recommendation for Sunday to 'trading buy' from 'neutral'.
Graphic: NOW15gwz