SELL
China Mobile
BNP Paribas Peregrine has maintained its 'underperform' rating, expecting earnings growth to be in the low single digits for the next three years. BNP said rival China Unicom's CDMA service and fixed-line operators' citywide systems would pose a challenge. BNP expects average revenue per user to drop from 115 yuan (about HK$108) last year to 93 yuan this year.
HOLD
CITIC International Financial (CIFH)
Salomon Smith Barney has lowered its rating from 'outperform' to 'in line' after CIFH said on Wednesday that last year's earnings fell 1 per cent from 2001. Salomon also lowered its earnings estimates by 24 per cent to HK$667 million or 22 cents per share this year. Salomon cut its price target from $2.5 to $2, which is nine times CIFH's expected earnings this year.
