SELL Anhui Conch Cement Sun Hung Kai Research has downgraded its rating on the H-share cement firm from 'hold' to 'sell' on its expensive valuation and 'stretched balance sheet'. Analyst Candra Gu said the company had a net debt of 3.2 billion yuan (HK$3 billion) last year, or a gearing ratio of 104 per . She believes all good news is priced in and at 16.6 times forward earnings, it seems overvalued. She has a $3.23 target price on the stock. SELL Television Broadcasts (TVB) Merrill Lynch has cut its earnings forecast for the station by 10 per cent this year and maintained its 'sell' rating on declining advertising revenues caused by the Sars outbreak. Merrill believes advertising revenues last month fell by 9 to 13 per cent largely due to the Sars virus. The deflationary macro-environment is also expected to dampen the recovery outlook for advertising rates. Merrill said TVB was trading at an unjustifiable 11 to 13 per cent premium to its valuation of $17-$22. BUY Hutchison Whampoa Daiwa Institute of Research has reiterated its outperform rating on the conglomerate, saying its exposure to the third-generation market has been priced in and that it would not be affected by news of its disposal of stakes in second-generation operations. The company has disposed $20 billion worth of Vodafone Group and Deutsche Telekom shares over the past few months. Analyst Jonas Kan has remained positive on Hutchison's other businesses and has forecast that average earnings growth of 16.1 per cent for port operations until 2005. He has a target price of $52.75 for the stock.