What the broker said...
Well-known Hong Kong company Sunday Communications is engaged in the sale of mobile phones and the provision of telephone services.
A Goldman Sachs' market report released nearly a year ago said consolidation signals remained strong in the mobile-phone arena.
A similar report in July last year suggested the third-generation (3G) auction held in September last year would be the catalyst for consolidation, but that was not the case.
The January 1 resignation of Craig Ehrlich as group managing director was also expected by some analysts to be the industry merger trigger, but again it failed to occur.
However, the report stated: 'News flow on consolidation has been quiet, but we believe this is mostly because things are happening rather than not.'
Goldman Sachs said consolidation would be good for Sunday's earnings and extended its 'trading buy' recommendation on Sunday stock for a further six months, with a target price of 55 HK cents.
Graphic: THEN24gwz
