BUY
China Mobile (Hong Kong) Daiwa Institute of Research has maintained its 'buy' rating and has forecast a year-on-year profit increase of 16.3 per cent to 17.7 billion yuan (HK$16.8 billion) when the company reports on Tuesday. Analyst Jenny Szeto said the profit growth was mainly due to the acquisition of eight cellular networks by China Mobile's parent last year. In addition, Ms Szeto said while the company had declared its first dividend last year, chances of an interim dividend remained unclear, despite the lack of near-term funding needs and strong cash flow. She has a price target of $23.10.
BUY
China Oilfield Services Merrill Lynch has assigned a 'buy' rating, saying the company would benefit from growth at CNOOC and its production sharing contract partners. Analyst Adrian Loh said the majority of the mainland's offshore oilfields were underdeveloped. This, along with continued drilling successes in the under-explored offshore basins, should ensure continued growth beyond the broker's forecast period, he said. Mr Loh expected China Oilfield to deliver earnings growth of 17.5 per cent annually between last year and 2005. He raised his price target from $2.30 to $2.50.
HOLD
Hong Kong & China Gas Sun Hung Kai Research has upgraded its rating from 'sell' to 'hold', citing growth opportunities from downstream gas distribution projects in China. Analyst Anita Hwang said Hong Kong's gas market was saturated and organic annual growth rates for the company were expected to remain in the low single digits. The main bright spot was gas distribution projects on the mainland, given that a number of its projects were in mega cities with large projected gas consumption. Ms Hwang expected earnings to rise 9.7 per cent to 59.5 cents a share this year and 8.7 per cent to 64.7 cents next year. She has a price target of $11 on the stock.