Daiwa Upgrades China Communications Const To Buy
Daiwa cuts China Communications Construction (1800.HK) target to HK$21.30 vs HK$26.40 after recent market pullback, based on 30X 2008 P/E, while raising stock to Buy from Outperform as current valuation viewed as attractive. "We believe CCC will record more than a 50% on-year increase in new contract value for 2008, which is the highest in the company's history," Daiwa says. Revises up margin assumptions, as well as earnings forecasts for 2008, 2009, as CCC has obtained more higher-margin contracts, such as overseas and railway-construction projects. Stock +1.8% at HK$16.70